pricing anomalies

[The_J]

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.

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...

That is a good comparison imho.
And until someone from southeast asia or africa joins, we probably already have a winner.

For germany:
Minimum hour wage [does not really exist] ~ 6€.
Civ price in germany: 50€
Civ ~ 8 h work.

 

[StStutter]

simple explanation for all pricing models across the world:

supply and demand

This is how free market capitalism works.

If we all lived in the USSR, we'd all have the same prices.

 

[Mark Havel]

Oh well, I've come to think about another point: the prices didn't really move since ages.

I remember beginning to play on my computer in 1998 and the prices of the PC games were roughly the same as they are now. They were in Francs at the time, but that was something near 350 F which translated in Euros gives 53 €. Meanwhile, if I take a mean inflation of 2% per year, which seems to me to be far from outlandish, that should have mean a 26% hike since 1998 so a game should be costing something closer to 63 € than the 50. And during all this time, the computing power skyrocketted as much as development costs but prices stayed absolutely flat. Obviously, editors invented some tricks to increase their revenue, such as the DLC, but I doubt it pays very well if the game hasn't sold very well, which means you certainly have to spent a good lot of money in the development and marketing.
So when you think about it, there quite no reason to complain.

The question to the disgruntled Australians is now: did the prices move significantly since the late 1990's?

 

[Rub'Rum]

True, it seems I used to pay 40-60$ for PC games back in 1995, and it's still the same, so I guess the price is going down... Maybe... Except people are buying 10 useless pieces of 5$ DLC after that.

 

[Peng Qi]

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.

Min wage in the US is based on state. Some are as low as $5.50, some are as high as $9.

 

[mjs0]

Min wage in the US is based on state. Some are as low as $5.50, some are as high as $9.

Actually minimum wage laws in the US are incredibly complex because of interaction between States and the Federal Government (and in some case City Government).

There is a Federal Minimum Wage in the US; it was raised to $7.25 in 2009. Only four States have local laws substantially lower than this.

When and to whom it applies (basically to companies making over $500K and to individuals at companies below that threshold if their job involves interstate commerce!)
is even more complex.

Suffice to say there are relatively few full-time hourly workers in the US below this rate.

 

[timtofly]

Actually minimum wage laws in the US are incredibly complex because of interaction between States and the Federal Government (and in some case City Government).

Suffice to say there are relatively few full-time hourly workers in the US below this rate.

You have to add to that though, the thousands of part time workers.

 

[mjs0]

You have to add to that though, the thousands of part time workers.

...and those under 20, and exempt (non-hourly) workers, and those that work for tips, etc., etc.; hence the complexity!

 

[embryodead]

Pre-order price in Poland: 100-120 PLN
Pre-order price in Poland through steam: 205 PLN
steam-only deluxe edition: 225 PLN

So while Deluxe edition is only 5 euros more, I'd have to pay about 30 euros more, or ~200% price of the normal game for an extra civ that should have been in anyway. What a deal!

steaming pile of steam

 

[CHEESE!]

If we all lived in the USSR, we'd all have the same prices.

This wins as the 'no, really?' quote of the day.

 

[trezno]

Look up Purchasing Power Parities (PPP). Economics have made lists and graphs about purchasing power - and this may in part explain the different prices in various regions.

 

[wolfigor]

simple explanation for all pricing models across the world:

supply and demand

This is how free market capitalism works.

"Classical" capitalism works in that way.
"Digital economy" works very differently...
For example in classical economy you have a supply capped by production capability, cost to produce copies of the goods, investment for infrastructure (factory, transportation), and relatively low R&D cost (in comparison with other costs).
For digital products there is practically unlimited supply with minimal production cost (but expensive R&D).
If you apply classical economic rules (supply and demand as you stated) you get a price for products tending to zero.

Different pricing models, before tax like in Stream, across the word for digital distribution reflects 2 things (mainly):
1. Economic speculation (artificially high prices in markets used to them, like Australia)
2. Inefficient financial structure of the company (local subsidiaries not fully integrated in a coherent system)

 

[ilikepies]

You have to add to that though, the thousands of part time workers.

And thousands of illegal workers! It's the American Dream- confusing, circumstantial and arbitrary differences in minimum wage.