pricing anomalies

[wolfigor]

They do not.

So I can buy from their UK shop at UK price from any EU country?

But as you can tell, I am always a member of the 1USD != 1EUR group, because I disagree with Valve's decision. I realise it is much easier for Valve to do (instead of doing actual exchange rates for each country with VAT and whatnot) and it does avoid introducing a whole new level of people attempting to buy products in one country, but I still feel a bit mocked by the decision. However, I am also a rich bastard, so I don't care that much to go out protesting or some such.

The fact we can afford to buy even at inflated price doesn't mean that we like to be cheated. (I was thinking to a different word to use, but it would be not polite)

 

[Svip]

Maybe that 'love theory' could explain this graph:

Source

As far as the Australian prices go, I am going to make a shrug in that direction, because I don't know. Maybe getting the classification in Australia is expensive or there is some sort of legal matter I am not aware of, or they actually have a HQ in Australia, which costs some monies.

 

[wolfigor]

Maybe that 'love theory' could explain this graph:

I don't think that piracy is the reason.
Games in Asia do not cost more than in Europe, and according to the piracy levels declared by that article, they should cost more.

Let's say the truth: companies want to make profit and the conversion 1 dollar = 1 euro is a normal way to ensure higher revenues.
Cost of life in EU is generally higher than in USA, and EU people are used to pay more for the same goods and services than across the Atlantic (not for everything, some services are cheaper in EU).

Prices for games are higher in Europe because Europeans, in average, are ready to pay the difference: it's a pure commercial decision

Probably the cost of exporting goods to Australia have made local people accept to pay more for imported goods.
Companies banks on such attitude and extend higher prices even to "virtual" goods that have no physical reason to cost more in Australia.
Data can be transferred at cost zero, and CD+manuals can be printed locally: no extra cost due to the distance of Australia from main markets.

Now this behaviour of unjustified prices difference across countries is kept alive "artificially" thanks to blocks and misinformation.
Consumers are getting tired of being milked in this way.



and now a small extract from the same article you posted:

the Steam versions of games can often cost as much, sometimes more, than their boxed retail equivalent. For example in Australia the Steam version of Fallout 3 costs $69.99 USD ($107.00 AUD), despite being sold for $49.99 USD in North America. Compare that with the retail boxed version in stores in Australia which depending on the exchange rate sells for the equivalent of $51 - $57 USD ($79 - $89.00 AUD). You can see that most Australians are unlikely to purchase Fallout 3 from Steam. Similarly, a year ago when Call of Duty 4 came out, Valve actually doubled its price on Steam in Australia because it undercut retail sales, making it far less attractive than the retail version.

Looks like somebody in software distribution really hate Australians
just kidding...

 

[Shurdus]

*snip*
Data can be transferred at cost zero
*snip*

Ever thought about starting an internet providing company? You can get data to people's houses for naught so it should be easy money.

 

[Rexflex]

Ever thought about starting an internet providing company? You can get data to people's houses for naught so it should be easy money.

Bandwidth is never truly free... but not only is it a lot cheaper to move around the world than moving physical objects are, it is also a matter of who pays.

Steam content is distributed via third party hosted servers around the world rather than just being available only on first party central data hubs. How much do you think Steam/2K/Firaxis would be paying for the bandwidth required for transferring of data between these steam content servers and the customer?

 

[PieceOfMind]

Ever thought about starting an internet providing company? You can get data to people's houses for naught so it should be easy money.

To one or two significant figures, it probably is zero.

 

[wolfigor]

Ever thought about starting an internet providing company? You can get data to people's houses for naught so it should be easy money.

1st "cost zero" was in the contest of transferring data to print manual and CD/DVD locally in a comparison with moving physical goods.

2nd to burn CDs/DVDs locally you just need to transfer the data (practically) once, and that's cost zero (almost)

 

[CMKMStephens]

Its just a sign that we New Zealanders are firmly ensconced at Valve. Next, Blizzard, then THE WORLD!

We're also getting the US$80 on Steam

Wait a second. That actually works out to be MORE expensive than the already overpriced retail boxes! NZ$115! And that's just for the standard edition.

Look at this.

What the hell?

For the record, buying CiV at USD$50 would work out to about NZD$72 atm.

*edit* Ah, I see this was pointed out in the other thread.

 

[_hero_]

This may not be primarily about exchange rates. There could be issues with tax policy or other unforeseen issues.

For the Aussie gamers here: Is this issue unique to Civ V or are other games "overpriced"?

 

[Ahriman]

Hero, please see the other thread.

http://forums.civfanatics.com/showthread.php?t=368993

 

[Nuff]

This may not be primarily about exchange rates. There could be issues with tax policy or other unforeseen issues.

For the Aussie gamers here: Is this issue unique to Civ V or are other games "overpriced"?

No, we're regularly flipped over and done dry by gaming companies. Has been happening for a long time. Unless the collector's / deluxe is unique to Australia (like my Emperor's Edition of Napoleon Total War) I will always get the game from the US as a digital download (if I can), or from a friend in the US.

Wouldn't leave this country though for quids, no matter how much they love to charge us up the bum for being "downunder" (really hate the upside down cause your an aussie crap, seriously, it's lame)

 

[Andyty]

This may not be primarily about exchange rates. There could be issues with tax policy or other unforeseen issues.

For the Aussie gamers here: Is this issue unique to Civ V or are other games "overpriced"?

I don't believe taxation policy plays any role in game pricing here in Australia, barring GST. Retailers here are told by publishers this is what to sell the game at or RRP, its up to the retailer to decide to follow it or not.

On the basis of living costs for pricing discrimination on Civ 5, Aussies on min wage of $15 ph = 7 hours work inc tax. In USA min wage is about $8 roughly = 6 hours, maybe 7 inc tax. Curious on what other countries rank on it.

As for the overpriced. yeah its definately not isolated to Civ 5. But only because the AUD is high atm

All AUD prices and soon as released dates
Metal Gear Solid 4 , EB games au = $120, Play-asia = $60 inc delivery
Super Mario Galaxy 2, JB Hi Fi = $89, Game.co.uk = $61 inc delivery
Dragon Age : Origins. EB games au $110, Play-Asia = $37 inc delivery
Civ 5, EB games au = $89, Game.co.uk = $51 inc delivery

Has anyone seen it cheaper than 25 GBP?

 

[12agnar0k]

while you can get a person you know from a cheaper pricing zone to gift you a copy and then pay them for it, make sure that you know and trust this person, certainly dont accept them from strangers, because if said person uses a stolen credit card to get you this gift and you accept it, your entire account can be disabled and very well may. Its happend to some people trying to get a cheap gift rather than pay full price. They had quite a few games on thier Steam accounts too.

So stay safe, if you try and cheat the system, sometimes its you who gets cheated.

As far as "well these prices arent the same" they will differ with currency variabilities, so "technically" they could all be the same price if global exhange rates were what 2k obviously thinks they should be hence the different prices .

Also you have to remember VAT/GST in Europe and the UK its included in the Steam Price, not sure if Australia's is already included, I guess it may be, where as America will still pay VAT on top of their Steam Price. So you may think "its only $US 50 on Steam." but actually its $50 + tax.

 

[mjs0]

while you can get a person you know from a cheaper pricing zone to gift you a copy and then pay them for it, make sure that you know and trust this person, certainly dont accept them from strangers, because if said person uses a stolen credit card to get you this gift and you accept it, your entire account can be disabled and very well may. Its happend to some people trying to get a cheap gift rather than pay full price. They had quite a few games on thier Steam accounts too.

So stay safe, if you try and cheat the system, sometimes its you who gets cheated.

As far as "well these prices arent the same" they will differ with currency variabilities, so "technically" they could all be the same price if global exhange rates were what 2k obviously thinks they should be hence the different prices .

Also you have to remember VAT/GST in Europe and the UK its included in the Steam Price, not sure if Australia's is already included, I guess it may be, where as America will still pay VAT on top of their Steam Price. So you may think "its only $US 50 on Steam." but actually its $50 + tax.

Two comments on this...
1. If you feel that you absolutely must go this way and are receiving a gift of this nature one way to avoid risking your existing games is to open a new Steam account purely for receiving the gift. A pain that shouldn't be necessary but good insurance.

2. Sales tax in the US is set at the local (state/county/city) level. The $50 in the US is only automatically taxed if the seller has a physical presence in your state (For Steam I believe this is Washington State). So, if you buy a game from a typical online retailer you don't get charged sales tax in most states. Shipping is often free also for orders over a certain dollar value so you only end up paying exactly $50.
If you buy it from Gamestop at your local mall then you will pay whatever sales tax is appropriate at that location, typically somewhere in the 4%-8% range, although actually 0% in a couple of states.

 

[davelisowski]

it's a way to get the US economy back on track.

they want everyone from AU to get the game gifted from a US resident because then the sales are considered 'US sales.'
Plus, most US residents who gift a copy to someone in AU will probably want one for themselves.

do I really have to pre-order to get the extra content? Pre-ordering is for things that run out. Like physical objects that will be gone once they are purchased... not a 3GB file that has been duplicated hundreds of thousands of times.

 

[V. Soma]

Aussies on min wage of $15 ph = 7 hours work inc tax. In USA min wage is about $8 roughly = 6 hours, maybe 7 inc tax. Curious on what other countries rank on it.

Well, In Hungary, minimal hourly wage for unqualified work is ca. 500 HUF
(ca. 2,3-2,5 USD).

The game will cost ca. 10 000 - 12 000 HUF...

...it gives 20-24 hours...

 

[Peng Qi]

The USA doesn't have a VAT.

 

[Grey2ham]

I thought that each state in the USA set its own sales tax. VAT is just Britains version of sales tax. Tax upon the value of the product at sale. However, British prices must always be advertised inclusive of VAT. You can't say buy Civ V here for £27.99 and then charge £30.00.

Back OT.
How much does a game normally cost in your country?
In the UK £30.00 is the standard retail price for a PC game. Is $80 the standard price in Australia? or $50 the standard in USA?
The price imbalance is purely due to your region's average game price.

 

[Peng Qi]

I thought that each state in the USA set its own sales tax. VAT is just Britains version of sales tax. Tax upon the value of the product at sale. However, British prices must always be advertised inclusive of VAT. You can't say buy Civ V here for £27.99 and then charge £30.00.

VAT is a national tax that is applied on every step of the sales process, whereas USA's sales tax only applies to the final point of sale. Also, states can't charge a sales tax on items which are purchased across state lines or on the Internet, as on Steam. The bottom line is that a VAT makes everything much more expensive than it would be without a VAT.

 

[Mark Havel]

I don't think that piracy is the reason.
Games in Asia do not cost more than in Europe, and according to the piracy levels declared by that article, they should cost more.

Let's say the truth: companies want to make profit and the conversion 1 dollar = 1 euro is a normal way to ensure higher revenues.
Cost of life in EU is generally higher than in USA, and EU people are used to pay more for the same goods and services than across the Atlantic (not for everything, some services are cheaper in EU).

Prices for games are higher in Europe because Europeans, in average, are ready to pay the difference: it's a pure commercial decision

(...)

I think you got it right. Here in France, the usual price for a PC game is something like 50 to 55 €, plus a 10 € for collector and special editions. Seeing the same prices on Steam is therefore not totally surprising and it doesn't shock that much to see the same game might be released for 50$ in the USA. Now people might start buying games on foreign (aka English) sites due to the favourable exchange rate, but it also comes with a price: Amazon.co.uk starts charging shipping fees if you're not in the UK, "off-shore" sites such as Play.com or zavvi are as slow as you can be and you won't see your game coming before 2 to 3 weeks after they've sent it. In the end, we're paying these 50€ for some convenience, the convenience to have the game right now.

Some people are still shocked by the strange exchange rates in Steam mainly because Steam used to charge games in US$ everywhere in the world (and applied taxes after you sent them you credit card number, thus, you didn't know how much would be actually be spent). So you had very good deals and suddenly, in December 2008, they started charging in British Pounds and in Euros at the usual local rate... which ended up in an hell of a price hike.

Anyway, seeing Civ V sold at 50€ instead of the 50$ it is sold in the US are not really a shocker. And at least, should the euro rates drop under the dollar again, we would be paying our games cheaper than the US .