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Where i live, nearly no store handle retail PC games for a long time now. lol
fix'd for you
also everyone keeps claiming this is soley on the publishers to do these changes but that isnt even true in this situation because the publishers arent price gouging in retailers in comparison to here, so whats the difference between going to ap hsyical store and buying on steam? the difference is steam
this shows clearly when you actually compare the prices of stores like bestbuy, gamestop, futureshop ect to steam prices, if this was soley up to the publisher then the prices would be exactly the same as those locations, not more than those locations and certainly not less
Steam only has PC games though, go into a pawnshop and games are literally 1/3 of the price of the new game
I'm not saying that this initial conversion doesn't raise a lot of serious questions. Based on an article (that I think had the same source as the one that leaked the spreadsheet for the summer sale) that I read, the process was supposed to be all games will be converted to local currency equivalents based on the conversion rate at the time, and if any particular prices were desired they had to be submitted by X date. All these discrepancies lead me to doubt the veracity of the article now and raise a lot of serious questions that need to be addressed.
I have seen no reports of Steam's pricing by publisher policies changing. Until something is leaked or announced I don't think we can automatically assume the publisher pricing policy has changed. Also, Steam runs on a different business model than most stores especially brick in mortar stores. They usually buy games or keys in bulk from the publisher and are free to set the prices they want.
The thing is, you can't rely on googles conversion rate. That is what is called the "bank rate" that only ever gets used when governments and financial institutions are trading millions if not billions of dollars. The story is a bit different for us peasants. If I log onto my bank account and transfer 60.00 USD into my USD I pay, as of this second I get a rate of 1.1342. This means that the 60 bucks costs 68.05. Because of the way my accounts are set up I get a discounted rate. of 1.5 points off the market rate. Visa's exchange rate is 2 to 3 points off the market rate depending. That means Visa would be charging you between 1.14 and 1.15.
Suddenly the rate you are paying doesn't seem so bad.
If anything it'll cost Valve money. If they are receiving money in CAD they are going to buy USD with it and pay an exchange rate premium on top of that albeit a smaller one than we do. It is almost impossible to win on foreign exchange. Previously the money just showed up on their end in USD.
To put things in perspective for you, most big international banks make more money from foreign exchange than they make in account fees and mortgages combined.
So the prices being quoted are for AAA titles sold at retail. Thus as Australia has shown us, trying to equate the retail pricing with a pure currency conversion is pretty much moot anyway. They almost never actually correlate.
The relevant question is, if you bought that game today instead of 2 days ago, what is your price differential. So this is more from the user perspective, rather than attempting to figure out what the merchant exchange rate valve is getting.
You noted that on a pure exchange rate basis, there's a 4.18% discreptancy. However if a user was buying a game on Steam 2 days ago, they'd be paying in USD. That transaction, will be subject to foreign transaction fees which is normal. The absolute lowest you could realistically get is 1% from Paypal funded from a bank. However if you use a credit card or such, it's 2.5-3%.
Thus the practical difference for a user buying that game in USD vs CAD is at worse a 3.18% difference if you used Paypal funded by a bank, and is more likely a 1.18-1.68% difference if they used almost any other payment method. Thus even in the worst case scenario, the price difference between 2 days ago and today is 3.18%. ANd again that only applies to literally a handful of AAA titles.
WHEN our dollar reaches par again [it's been floating at par for years] we will be getting ripped off as they fail to adjust for inflation. For now, it seems like an even trade.
Also would like to point out the fee is less than 1% when funding from a bank account or paypal balance.
So likely I won't be buying games from steam any longer.
Basically since its converted to Canadian Currency from american currency, the only difference is we're seeing the full price up front. Before we were seeing the $49.99 price in steam and the extra added by the bank came later, and not seen unless we checked out bank statements.
We're not really spending more overall, we're just seeing the total price up front.
Am I right on this?
For now yes, but the problem is when the
Unless there is a huge change in value I doubt Steam will do anything on the same scale it has just done. The real questions arise in default pricing of future games as the currency flucuates either way and what publishers decide to do about it..
BBZZZZZZZT! Wrong (again) but thanks for playing!
There are cards that do, in fact, charge no fee and simply do the conversion. No extra fee.
Steam has basically told Canadians to go elsewhere.