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Mostly profit. Some countries also impose additional taxes and restrictions on online games e.g. South Korea. EU prices tend to be the highest.
I'm back!
Totally agree with you Evil Coconut.
At today's exchange rate this game is AUD $94.71
The retail version in EB Games in Australia is AUD $79.95
So Steam are AUD$15 more expensive.
Anyway, this is on special @ Indie Gala now, USD $39.95
If it was there'd be no reason for the same goods IN YOUR OWN COUNTRY to hvae different prices
Also Steam actually operates from each of the vaerying regions. They have an office in each of the regionbs so.. STeam isn't so much based in america as many seem to think. In fact it's a requirement in some regions that any business that trades in the region have a local office.
Different regions have different prices as well. There are also distribution arrangements. The publishers may have agreements with other regional brick and mortar distributors that do not allow them to undercut the prices of those distributors/retailers.
Distribution is a very messy and tangled affair, as are international taxes and tarrifs. There's also the cost of localization. Having to hire a company to do localizing on your game costs money. Having to hire new voice actors to redub audio costs money. Extra money. Seems only fair that the region that required the localization should pay for the increased cost of said localization no?
It is true, mostly all of what you say. But you ware forgetting that some countries are getting a price cut all in the order of 20% to 33% off to even more! if u take as a base the US prices. Steam suggests this to developers in order to achieve the highest number of sales as an acceptable price for that economy.
The funny thing is taht these countries have also international taxes and tarrifs as you say, tho its amortized to the customer by the decisicion of lowering the price to "make it fair" for "poor contries". So even with all these additions to the price, many countries have a price under the base US cost. So it does make you wonder why they decided to implement that to help "pirating" countries and not give some kind of "well done" pat in the back to "law abiding" (in general) contries (since they are not loosing sales due to these problem in the degree as the countries they try to "help").
My area was closed to gifting for a reason very close to this, after having many problems in east europe, steam decided to apply the same mechanism to my country (mexico) and immediately blocked any gifting possibilities to any part of the world rather than my zone. Tho there are some examples of games in the price range of this.. and some that are even 30% ABOVE the US base price, i can't gift to any country, even the ones where the same game is cheaper. In the case of the OP the game here was more expensive than the US version in a currency conversion, by a lil bit... like only 2% tho it was locked to gifting. A 2% isn't much so the price wasn't the problem really its the idea that my copy would be region blocked in the case of regionalizing the service in the future.
To me the root of so many problems is these kinds of price discrepancies. I understand steam isn't doing anything illegal by persuading the devs to increase prices in certain areas and devs aren't either, but might as well also persuade them to lower the prices and absorb the legal costs of this as they do already in "poor" countries.
I wish you would explain then what you understand by localization costs and how does the fairness of absorbing those prices works...tho. :)
Suffice it to say there are reasons, and some simply pragmatic. But the key thing to remember. This is the right of the seller. No one says sellers have to set fair prices. Though again there may be more tax discrepencies than you realize. not just in what taxes but also in where the taaxes and surcharges are applied.
FOr example in my country the government levies a tax on foerign income sources I.,e If I in my country sell you something in your country I have to pay extra tax on the amount I get from you. Naturally I am going to adjust my out region prices to reflect this .Though for thos ewithin my regiion... there is no such additional tax so I don't have to charge extra. :)
I mean from what I've heard in the US keeping track of taxes from state to state is a headache and a half.
Yes ofcourse, but here this can be more compared to having different prices for each person that walks into a store, the same store, the same vendor.
People don't feel agravated of having a store in the south part of their city with different prices than the same store name but in the north. What people do feel bad about is that each time they go into the store which is the same store they are separated into stereotypical groups in which some are made to pay more or less for the same product in the same exact place.
There are exceptions, for instance... if i was a student and would get a discount based on that idea, i am sure everyone understands it or maybe a disscount cause you are old, but just of where you are from? The problem is that you see this with the eyes of a physical place.
As i say, this is more comparable to having a bunch of people outside of a store and starting grouping them by countries of origin, then telling them.. ok you can go in, but everyone based on their origin will have to pay a different sum.
Still it doesn't explain why some poor countries that require tax and other legalities are getting cheaper prices... I'm not against price differences btw... all i'm saying is that the discrepancies and the distances between some are just beyond ridiculous and that is basically a poor lack of planning, which u can observe in the myriad of problems it causes.
Well that's because of how a consumer perceives it. COnsumer perceptions are often incorrect.
The irony is, the first example is actually how steam and many international online retailers operate. Steam Latin America for example is literally an incorporated Latin American company. As is Steam Australia. Same Holds troo for Amazon and others. So when you see a different price in your region. It's more akin to the uptown branch of a supermarket charging one price and the downtown branch charging another.
You and many picture Steam as One gigantic store when is reality it's more like many large stores with a unified inventory.
I'm losing count of replies like this, the thread started with many of them.
Lets get some facts straight
1) The sale is handled outside of Australia
2) No tax applies
3) Sale is in USD, not AUD
4) Abide by Australian Consumer Law (Steam's return policy is in constant breach of this, more proof the transaction is not local)
5) Under Australian law a retail sale in Australia must be in $AUD, include GST and a tax invoice must be supplied.
Ultimately i am being charged based on my physical location.
No other factors come into play.
I wont make a blanket statement on this, speaking for Australia only this is untrue.
And even if it were see my points above regarding being charged in AUD and having a tax invoice provided.
Steam could indeed operate in Australia like this, and Google Play store in fact do operate like this.
When i buy from google i am billed in AUD, GST is included and a tax invoice is e-mailed.
Steam do not.
There may be some fact in the above quote, this is the only plausible answer.
No sure what you're trying to say here?
What language do you think we speak in Australia?? Klingon?
At most we might spell a few words differently (which is almost never localized anyway).
Ultimately...
If i buy from Amazon, i pay same price as anyone else.
If i buy we hosting i pay same.
If i buy from GOG or Greenman gaming i pay the same.
It is only steam that discriminate based on location.
And only to gouge Aussies because they are under some illusion we are willing to pay it.
For a person who just wants to play a game with some buddies being forced and willing are 2 different things.
Some people say it as if we have a choice.
blah blah "if you don't like it then don't buy it"
Is that really fair?
Put yourselves in our shoes.
Yeah, average wage is higher here.
But we pay 5x as much for property, 2x - 3x as much for fuel, and just basic groceries are much more expensive.
Believe it or not we could use a break guys.
Instead we get taken advantage of or we have to live without.
We shouldn't be arguing about this.
We should be in game shooting each other in the face and laughing about it.
These are games guys, nothing more.
Games that i am finding it hard to afford.
Games i won't be joining you in until a steam sale 5 years from now.
There is no real reason to charge us more simply because of our location.
Well the solution is simple. You and the other aussies need to stop buying games for a year. Send a clear and strong message to the industry
And yes I am serious, If you and the aussies feel that strongly about it and really want it to change.. well then....you;'re gonna have to bite the bullet and sacrifice for a bit.