Pricing recommendations

[Arusu]

When is steam gonna update the suggested prices for each currency? My country has currently the 2nd most expensive games in the world only behind the Switzerland while having 1/4 of per capita GDP?

[Jack Schitt]

Steam doesn't determine the prices of the items on sale in their store. They're a distributor. They take a commission or set fee from each sale. The prices of the content for sale on Steam is calculated by whatever the publisher decides to sell it for plus Steam's commission from the sale then local taxes (where relevant) are added.

[Arusu]

But steam does publish pricing recommendations for each currency and most publishers do follow them (with some delay).

[Arusu]

I can buy games for some of those publishers from other official sources for cheaper than they are listed on steam (others force the parity with their steam pricing).

[_veleron]

Originally posted by Arusu:

When is steam gonna update the suggested prices for each currency?

No one here knows, I doubt even people from Valve know this, but they've updated them recently so it could be years from now.
If you are from Poland, it's an EU regulations issue, sellers cant have lower prices just for you and not, say, France.

[Arusu]

Originally posted by _veleron:

Originally posted by Arusu:

When is steam gonna update the suggested prices for each currency?

If you are from Poland, it's an EU regulations issue, sellers cant have lower prices just for you and not, say, France.

But currently France does have cheaper games than Poland, so that argument makes no sense D:. I really wouldn't mind having parity with Eurozone prices.

[SinCanDory]

It's (mostly) up to the currency rates, taxes and government policies.

[Bee🐝]

Originally posted by Arusu:

But steam does publish pricing recommendations for each currency and most publishers do follow them (with some delay).

They don't have to though and many companies don't - Kitfox Games lowered their pricing in some regions after the community asked.

Valve adjusted the price recommendations based on numerous factors. One being at which price point the developers will be able to make some profit from the game. Note, some regions are paying what's the equivalent of a Big Mac in the States - that's before the publishers take their profit share.

The best you can do is ask the publishers and developers for a lower regional price.

For more info:
https://partner.steamgames.com/doc/store/pricing

Edit: Note, some indie developers no longer offer regional pricing in countries like Argentina, Turkey and Russia; regional pricing abuse was actually costing them money. If the new changes to the region detection settings are effective that might change.

[wuddih]

Valve did in October 2022 and they under the table said they wanna do this yearly. also the recommendation do not affect pricing of existing products unless the owner changes it, which most didn't.

no need to say but "recommendation". the product owner is free to ignore them entirely, most AAAs do that with a passion and that is mostly why these complaints about pricing exist.

[Arusu]

Originally posted by wuddih:

Valve did in October 2022 and they under the table said they wanna do this yearly. also the recommendation do not affect pricing of existing products unless the owner changes it, which most didn't.

Thanks for the response. The issue with "recommendations" is that while AAA games ignore them, there are different venues for buying those games (legally) without paying the "currency tax" (at least for some AAA publishers, others can always be ignored). Also their own currency rates only affect small scope of games, not the entire market. Meanwhile AA and indie games mostly switched to steam "recommended" exchange rates (which I understand, who would want to track all the currencies by themselves).

It's also in steam's best interest to update those soonish, because they're gonna start losing market share to stuff that keeps better entertainment value across currencies like pc game pass.

[Start_Running]

They do this because teh Recommendations are based on market trends , economic ratings and research. DO you want Valve to LIE to their business partners about the data? Because keep in mind the ones most negativeley affected will be thise indie and mid-teir studios.

[Crazy Tiger]

Originally posted by Arusu:

It's also in steam's best interest to update those soonish, because they're gonna start losing market share to stuff that keeps better entertainment value across currencies like pc game pass.

Hyperbole nonsense claims don't make a point.

One has to consider that the markets hit by this might not actually be as important as people want them to be.

[Arusu]

Originally posted by Crazy Tiger:

Originally posted by Arusu:

It's also in steam's best interest to update those soonish, because they're gonna start losing market share to stuff that keeps better entertainment value across currencies like pc game pass.

Hyperbole nonsense claims don't make a point..

It was not a point, but a simple comment. I'm in no position to ask of steam to change those recommendations any time soon, but I'm in a position to say that it may hurt they market share in a country that may as well be insignificant to them (idk, I don't have their revenue data). Calling this a "hyperbole nonsense claim" is rude and ignorant.

[JVC]

Originally posted by Arusu:

I can buy games for some of those publishers from other official sources for cheaper than they are listed on steam (others force the parity with their steam pricing).

Which is logical. Companies have only one of two possible pricing strategies - unless they want to go bust; only two strategies work - 1) Be the company that offers something more than the others so you can charge a higher price than the competitors, 2) Have the cheapest price on the market. Steam has position 1). The key sellers all try to occupy position 2).

It's textbook business school material.

Under e.g. EU regulations, distributors can't dictate price. They can recommend them - hence the phrase "recommended retail price". But if a distributor demands to dictate a price that's illegal in the EU.

Also: what's important for a seller is how much money the seller gets when converted into the seller's own currency, that's at odds with the interest of the customer from the country with the poor economy.