I've only sold a few games on ebay, but I've only once used the video games category. I ship via USPS Priority Small Flat Rate Box... costs ~$5, but they cap shipping in the video games category at $4. My first video game auction I listed a lot of three sega 32x games, starting at $0.99. 5 days later there was one bid - for $0.99. Because of the shipping cap at $4 and the ebay fees, I actually lost money in that listing. Screw that. Now I use generic categories where the shipping isn't capped. I also don't start bids at $0.99 anymore. ;-)
Some would recommend changing shipping methods... but the flat rate boxes are just so easy for the shipper... free box, free pickup, easy labeling, no weighing.
I emailed ebay and asked them to raise the cap to $5, they just replied with a link to documentation about their shipping caps. Then I emailed asking them why they wouldn't at least fix the price so that when you picked small flat rate box in the shipping interface it wouldn't just fix the price at that... got another link back to their documentation. So.... alternate category it is!
Ebay needs to drop the shipping caps... let people make up their own minds about how much they're willing to pay for shipping.