Why different prices for different regions?

Hi-Torque Feb 4, 2015 @ 5:34pm

Publishers set regional prices. If your asking for an explaination of international trade and the reasoning behind studios, hardware manufactures, game publishers, etc., price differentials it is so they can make a profit.

Last edited by Hi-Torque; Feb 4, 2015 @ 5:39pm

#1

Virtual Insanity Feb 4, 2015 @ 5:54pm

Originally posted by Hi-Torque:
Publishers set regional prices. If your asking for an explaination of international trade and the reasoning behind studios, hardware manufactures, game publishers, etc., price differentials it is so they can make a profit.

Hi _ Hi-Torque (wierd?)

If the publisher were opperating an office in Australia and completing the transaction localy in AUD then that would make sense.

But my transaction is completed on American soil in USD.

So i still don't see any valid reasoning behind this.

#2

Hi-Torque Feb 4, 2015 @ 6:00pm

Originally posted by Virtual Insanity:
Originally posted by Hi-Torque:
Publishers set regional prices. If your asking for an explaination of international trade and the reasoning behind studios, hardware manufactures, game publishers, etc., price differentials it is so they can make a profit.

Hi _ Hi-Torque (wierd?)

If the publisher were opperating an office in Australia and completing the transaction localy in AUD then that would make sense.

But my transaction is completed on American soil in USD.

So i still don't see any valid reasoning behind this.

I send you Virtual Greetings Virtual Insanity :)

So your asking as an American why the Aussies pay more? As an Aussie visiting America?

Give me some context here.

Last edited by Hi-Torque; Feb 4, 2015 @ 6:00pm

#3

Gus the Crocodile Feb 4, 2015 @ 6:12pm

Originally posted by Virtual Insanity:
If the publisher were opperating an office in Australia and completing the transaction localy in AUD then that would make sense.

But my transaction is completed on American soil in USD.

So i still don't see any valid reasoning behind this.

By the same logic, surely you should only expect US prices if you were over there right now, paying from the US with your US dollars. The payment processing may be finalised in USD, yes, but that isn't the start of the transaction.

A transaction has two parties. The money (starting as AUD, presumably) comes from here in Australia and goes to the US, and the game comes from the US and travels over here. One end of the transaction is here with you, and the other end is with Valve.

Ultimately we pay higher prices because....we pay higher prices. If we chose not to pay them, they'd go down. But we (speaking for the country broadly, not you or I or anyone else) don't.

Last edited by Gus the Crocodile; Feb 4, 2015 @ 6:12pm

#4

Virtual Insanity Feb 4, 2015 @ 6:20pm

I'm trying to see how context is relevant, but i can't ?

Steam operate from within the US, and charge in USD, thus by dealing directly with Steam and paying in the native currency i see no reason why i should be charged more because i'm in Australia.

If Steam had an office in Australia and charged me in local currency i would expect a different price (but steam would also then be bound by Australian consumer laws).

As it stands i am paying a US based company, on US soil in US currency for a non tangible product that requires no shipping.

And that is before even mentioning a small fee i have to pay Paypal or my bank for converting AUD to USD for the transaction.

It costs Steam nothing more to deal with me than to deal with a US citizen.

Some Aussies go as far as to make a fake account with US details so as not to end up paying the premium that applies to some games, then gifting the product to their own account.

Something i may have to consider doing!

Context=-
Australian born Aussie, currently residing near Melbourne
Busted myself up at work and am off for a few weeks with a reduced income.
Doing some game shopping to keep myself busy.
Stumble across this game, looks really cool.
I have *steam price checker* plugin for Chrome (this is not the 1st time this has happened, it's a daily occurrence dealing with Steam) which reveals the different prices for different countries.

#5

Hi-Torque Feb 4, 2015 @ 6:21pm

Originally posted by Gus the Crocodile:
Originally posted by Virtual Insanity:
If the publisher were opperating an office in Australia and completing the transaction localy in AUD then that would make sense.

But my transaction is completed on American soil in USD.

So i still don't see any valid reasoning behind this.
By the same logic, surely you should only expect US prices if you were over there right now, paying from the US with your US dollars. The payment processing may be finalised in USD, yes, but that isn't the start of the transaction.

A transaction has two parties. The money (starting as AUD, presumably) comes from here in Australia and goes to the US, and the game comes from the US and travels over here. One end of the transaction is here with you, and the other end is with Valve.

Ultimately we pay higher prices because....we pay higher prices. If we chose not to pay them, they'd go down. But we (speaking for the country broadly, not you or I or anyone else) don't.

Hello Gus,

Having visited Perth and Sidney over the years, I can say lovely country! Fantastic Beer!

Wouldn't you say though part of the price increase is taxes and duties on the publishers? The cost of doing business? In addition to (I am almost certain) maintaining a local staff, etc.

@Virtual Insanity: Take it easy, you may have know about all of that, but we didn't :) Thanks and I hope your on the mend.

Last edited by Hi-Torque; Feb 4, 2015 @ 6:24pm

#6

Virtual Insanity Feb 4, 2015 @ 6:23pm

Originally posted by Gus the Crocodile:
Originally posted by Virtual Insanity:
If the publisher were opperating an office in Australia and completing the transaction localy in AUD then that would make sense.

But my transaction is completed on American soil in USD.

So i still don't see any valid reasoning behind this.
By the same logic, surely you should only expect US prices if you were over there right now, paying from the US with your US dollars. The payment processing may be finalised in USD, yes, but that isn't the start of the transaction.

A transaction has two parties. The money (starting as AUD, presumably) comes from here in Australia and goes to the US, and the game comes from the US and travels over here. One end of the transaction is here with you, and the other end is with Valve.

Ultimately we pay higher prices because....we pay higher prices. If we chose not to pay them, they'd go down. But we (speaking for the country broadly, not you or I or anyone else) don't.

Sorry Gus, that makes no sense?

Steam only accept USD, thus i pay in USD.
The AUD->USD conversion is done by my bank and i pay a fee for it.
Steam never sees, nor deals with the AUD.
The product is non tangible and requires no shipping.

#7

Virtual Insanity Feb 4, 2015 @ 6:26pm

Originally posted by Hi-Torque:
Hello Gus,

Having visited Perth and Sidney over the years, I can say lovely country! Fantastic Beer!

Wouldn't you say though part of the price increase is taxes and duties on the publishers? The cost of doing business? In addition to (I am almost certain) maintaining a local staff, etc.

The publisher is Polish, the distributor is steam, the goods are electronic.
No local(AU) taxes apply as it is an online transaction (ie, like duty free).

:::EDIT:::
Just a thought, if the situation were the other way around it would be cheaper.
If a US person on US soil made an online purchase from an Australian based business, then that person would NOT be required to pay tax, thus paying less than i would on Australian soil.

Same should apply for me buying from Steam, no taxes(duties) should be payable, thus price should be same or cheaper than US prices.

Last edited by Virtual Insanity; Feb 4, 2015 @ 6:36pm

#8

Gus the Crocodile Feb 4, 2015 @ 7:08pm

Originally posted by Virtual Insanity:
Steam only accept USD, thus i pay in USD.
The AUD->USD conversion is done by my bank and i pay a fee for it.
Steam never sees, nor deals with the AUD.

Currency is essentially irrelevant. Where the payment is processed is also irrelevant - it's the internet, you can perform a transaction involving any countries, anywhere in the world.

The game is priced higher in Australia because the publisher wants it priced higher in Australia.

Yes, Valve could say "no publishers are allowed to charge different rates than the US price", and then bam, nobody in poorer parts of the world can afford games anymore.

Yes, region pricing does get used to arbitrarily raise prices, but Australians were actually unhappy to pay upwards of $80 for games, nobody would be able to sell games here for upwards of $80. As I said, they charge it because people pay it. Market forces at work.

Originally posted by Virtual Insanity:
The product is non tangible and requires no shipping.

It is "shipped" to you over the internet. Every product is. If you want to substitute the word "delivery" for "shipping", go ahead.

Originally posted by Hi-Torque:
Wouldn't you say though part of the price increase is taxes and duties on the publishers? The cost of doing business? In addition to (I am almost certain) maintaining a local staff, etc.

There are not really any notable taxes and duties applied to digital game sales. There are on physical sales, and that does influence things, because retailers pressure publishers not to undercut them.

Still, if buyers didn't pay the prices at retail, those would have to go down. So it's the same result. The only way to bring prices down is for enough people to shop around or do without that the various sellers take note.

Last edited by Gus the Crocodile; Feb 4, 2015 @ 7:18pm

#9

Hi-Torque Feb 4, 2015 @ 7:16pm

Originally posted by Gus the Crocodile:
Originally posted by Virtual Insanity:
Steam only accept USD, thus i pay in USD.
The AUD->USD conversion is done by my bank and i pay a fee for it.
Steam never sees, nor deals with the AUD.
That's rightCurrency is essentially irrelevant. Where the payment is processed is also irrelevant - it's the internet, you can perform a transaction involving any countries, anywhere in the world.

The game is priced higher in Australia because the publisher wants it priced higher in Australia.

Yes, Valve could say "no publishers are allowed to charge different rates than the US price", and then bam, nobody in poorer parts of the world can afford games anymore.

Yes, region pricing does get used to arbitrarily raise prices, but Australians were actually unhappy to pay upwards of $80 for games, nobody would be able to sell games here for upwards of $80. As I said, they charge it because people pay it. Market forces at work.

Originally posted by Virtual Insanity:
The product is non tangible and requires no shipping.
It is "shipped" to you over the internet. Every product is. If you want to substitute the word "delivery" for "shipping", go ahead.

Originally posted by Hi-Torque:
Wouldn't you say though part of the price increase is taxes and duties on the publishers? The cost of doing business? In addition to (I am almost certain) maintaining a local staff, etc.
There are not really any notable taxes and duties applied to digital game sales. There are on physical sales, and that does influence things, because retailers pressure publishers not to undercut them.

Still, if buyers didn't pay the prices at retail, those would have to go down. So it's the same result. The only way to bring prices down is for enough people to shop around or do without that the various sellers take note.

I mostly agree. Still. I would be very surprised at the Corporate Level - not the Consumer, that there were not "taxes" of a sort.

And lastly, shipping. Somebody has to pay for that sub cable and the data it consumes.

#10

Virtual Insanity Feb 5, 2015 @ 3:29am

Originally posted by Hi-Torque:
And lastly, shipping. Somebody has to pay for that sub cable and the data it consumes.

You're right.
Have you seen the cost of internet in Australia?
Among the most expensive in the world.

Originally posted by Gus the Crocodile:
Currency is essentially irrelevant. Where the payment is processed is also irrelevant - it's the internet, you can perform a transaction involving any countries, anywhere in the world.

That's exactly what i was trying to say.

The game is priced higher in Australia because the publisher wants it priced higher in Australia.

I'm checking into this, will report back.

Yes, Valve could say "no publishers are allowed to charge different rates than the US price", and then bam, nobody in poorer parts of the world can afford games anymore.

Yes, region pricing does get used to arbitrarily raise prices, but Australians were actually unhappy to pay upwards of $80 for games, nobody would be able to sell games here for upwards of $80. As I said, they charge it because people pay it. Market forces at work.

That is said as if any one in Australia can afford to throw $80 here and there.
I assure you that is not the case for me.

Originally posted by Virtual Insanity:
The product is non tangible and requires no shipping.
It is "shipped" to you over the internet. Every product is. If you want to substitute the word "delivery" for "shipping", go ahead.

No, it is not shipped, it is not delivered, it is not anything.
It is non tangible.
I download it using my internet service which i pay for at my cost separate to the game purchase.

And don't raise the point that Steam have to pay for servers, because that applies equally to every purchase, not just Australian purchases.

In fact the cost of internet in Australia is insane partly because we pay a premium for the seabed cables as it is usually us wanting US content and not the other way around.

If AU dropped off the face of the internet it would hardly effect anyone, Microsoft, Google and facebook would still exist.

Originally posted by Hi-Torque:
Wouldn't you say though part of the price increase is taxes and duties on the publishers? The cost of doing business? In addition to (I am almost certain) maintaining a local staff, etc.
There are not really any notable taxes and duties applied to digital game sales. There are on physical sales, and that does influence things, because retailers pressure publishers not to undercut them.

Still, if buyers didn't pay the prices at retail, those would have to go down. So it's the same result. The only way to bring prices down is for enough people to shop around or do without that the various sellers take note.

#11

supertrooper225 Feb 5, 2015 @ 3:32am

I imagine different local economies have different prices of living and values of currency. Game prices are changed to reflect the local economy and to support whatever local taxes are put forth. Yes, a certain amount of the reason is due to the publishers needing to make a profit. But that is economics people...if they don't make a profit by selling in your area, they won't sell in your area at all. Nobody will conduct business in your local economy if it results in a loss.

#12

Virtual Insanity Feb 5, 2015 @ 3:46am

An interesting analogy of all of this is web site hosting.

If i wish to pay for a US based web hosting service i would pay the same price as anyone else in the US.

If i want to buy a joystick from Amazon US i pay the same price as anyone else.

If i want to purchase a .com domain name - same price as someone US based.

VPN service? - Same price.

Why is this not the case with Steam?

Simply put unless proven wrong it appears to me that Steam using their monopoly to price gouge us Aussies.
Has been happening for years and i'm quite frankly over it.

Back to basics, this is how all of this has come about.

Originally posted by Virtual Insanity:
Context=-
Australian born Aussie, currently residing near Melbourne
Busted myself up at work and am off for a few weeks with a reduced income.
Doing some game shopping to keep myself busy.
Stumble across this game, looks really cool.
I have *steam price checker* plugin for Chrome (this is not the 1st time this has happened, it's a daily occurrence dealing with Steam) which reveals the different prices for different countries.

I have about $130 in the bank (not counting $96.29 gas bill here due in a week)
My income is reduced and i'm off work.
I'm not looking for sympathy, just a fair deal.

Ultimately i don't buy titles with different prices on principle, and will do the same here.
But would love to think this could somehow change one day.

#13

supertrooper225 Feb 5, 2015 @ 3:54am

Originally posted by Virtual Insanity:
An interesting analogy of all of this is web site hosting.

If i wish to pay for a US based web hosting service i would pay the same price as anyone else in the US.

If i want to buy a joystick from Amazon US i pay the same price as anyone else.

If i want to purchase a .com domain name - same price as someone US based.

VPN service? - Same price.

Why is this not the case with Steam?

Simply put unless proven wrong it appears to me that Steam using their monopoly to price gouge us Aussies.
Has been happening for years and i'm quite frankly over it.

Back to basics, this is how all of this has come about.
Originally posted by Virtual Insanity:
Context=-
Australian born Aussie, currently residing near Melbourne
Busted myself up at work and am off for a few weeks with a reduced income.
Doing some game shopping to keep myself busy.
Stumble across this game, looks really cool.
I have *steam price checker* plugin for Chrome (this is not the 1st time this has happened, it's a daily occurrence dealing with Steam) which reveals the different prices for different countries.

I have about $130 in the bank (not counting $96.29 gas bill here due in a week)
My income is reduced and i'm off work.
I'm not looking for sympathy, just a fair deal.

Ultimately i don't buy titles with different prices on principle, and will do the same here.
But would love to think this could somehow change one day.

Chalking evrything up to corporate greed is too simple to take seriously as a correct opinion on the matter. For one thing...publishers set the prices...not Steam. So there is another reason why the prices are different. And there are other digital distribution services other than Steam...so while it holds a heavy share of the market...it is not, in fact, a monopoly. So that isn't true either.

Prices are set according to the local economics of your region. It is really that simple.

Last edited by supertrooper225; Feb 5, 2015 @ 3:55am

#14

Paradigm Feb 5, 2015 @ 4:05am

Originally posted by Hi-Torque:
Publishers set regional prices.

I guess most Publishers just go along with what regional prices Valve suggests them.

Last edited by Paradigm; Feb 5, 2015 @ 4:09am

#15

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