Türkiye's Currency Change Is a Huge Mistake and Will Harm Steam and Game Publishers in the Long Term

[★ Wimhaen]

According to Steam, they are removing the Turkish Lira and switching to USD to protect game developers and Steam itself. However, this change is a huge mistake and will harm Steam and game publishers in the long term. Here is why 👇🏻

I have a degree in Labor Economics, and based on my knowledge and education, I believe this move won't benefit either Steam or any game publisher. I strongly believe that this decision was made hastily and without a thorough consideration of its consequences.

In 2023, the average AAA game price per copy is around $100, which is essentially equivalent to 2.813₺ with the current exchange rate. The minimum salary in Türkiye is approximately $450, and almost 50% of the population is paid the minimum wage. According to these statistics, Turkish customers may not continue to purchase games on Steam since the average AAA game will cost a quarter of their minimum wage.

Additionally, Epic Games often sells games at prices lower than Steam's current USD/Turkish Lira exchange rate.

Xbox Game Pass is gaining a huge user base in Türkiye as well, primarily because it allows players to enjoy the most popular games in Türkiye at very reasonable prices, just 120₺ per month. For example, games like Cities Skylines 2 (which will cost around ~1400₺ after the currency change) and Football Manager 2024 (which will be ~1520₺ after the currency change).

EA Play Pro is becoming one of the preferred subscription methods in Türkiye, given that EAFC24 costs 1200₺ on Steam, but after the update, it will be around ~2000₺. Meanwhile, an EA Play Pro subscription costs only 150₺ each month and grants every EA Play Pro subscriber the Ultimate Edition of EAFC24. (The Ultimate Edition is priced at 1700₺ on Steam, with the current exchange rates.) In essence, instead of paying 1700₺, you can get a 11-month subscription for EA Play Pro, allowing you to play EAFC24 and many other EA games.

I have been working closely with Valve since 2015, and I have observed that they can be quite money-oriented. However, the issue we are discussing here is not solely about money.

Firstly, Steam suggest that increasing prices, which would likely reduce sales and drive users to other platforms, is a better solution than maintaining the status quo. In essence, their proposed solution appears to involve trying to fix a problem by making it even worse(!), which will benefit other platforms.

We should keep in mind that Türkiye has the 7th largest user base on Steam. Do you truly believe that losing such a significant number of users to other platforms, which already provide more affordable alternatives due to Steam's current exchange rate policy, will benefit Steam in the long run?

Additionally, do you genuinely think that raising prices, removing the option to pay in Turkish Lira, and switching to USD will prove financially advantageous for Steam when compared to other platforms, which already provide more affordable alternatives or will it instead drive more people to use those other platforms?

This change will likely drive many players to the Epic Games, Xbox Game Pass and EA Play Pro subscriptions and will harm Steam and game publishers in the long term.

[cSg|mc-Hotsauce]

Originally posted by ★ Wimhaen:

Türkiye's Currency Change Is a Huge Mistake and Will Harm Steam and Game Publishers in the Long Term

According to Steam, they are removing the Turkish Lira and switching to USD to protect game developers and Steam itself. However, this change is a huge mistake and will harm Steam and game publishers in the long term. Here is why 👇🏻

I have a degree in Labor Economics, and based on my knowledge and education, I believe this move won't benefit either Steam or any game publisher. I strongly believe that this decision was made hastily and without a thorough consideration of its consequences.

In 2023, the average AAA game price per copy is around $100, which is essentially equivalent to 2.813₺ with the current exchange rate. The minimum salary in Türkiye is approximately $450, and almost 50% of the population is paid the minimum wage. According to these statistics, Turkish customers may not continue to purchase games on Steam since the average AAA game will cost a quarter of their minimum wage.

Additionally, Epic Games often sells games at prices lower than Steam's current USD/Turkish Lira exchange rate.

Xbox Game Pass is gaining a huge user base in Türkiye as well, primarily because it allows players to enjoy the most popular games in Türkiye at very reasonable prices, just 120₺ per month. For example, games like Cities Skylines 2 (which will cost around ~1400₺ after the currency change) and Football Manager 2024 (which will be ~1520₺ after the currency change).

EA Play Pro is becoming one of the preferred subscription methods in Türkiye, given that EAFC24 costs 1200₺ on Steam, but after the update, it will be around ~2000₺. Meanwhile, an EA Play Pro subscription costs only 150₺ each month and grants every EA Play Pro subscriber the Ultimate Edition of EAFC24. (The Ultimate Edition is priced at 1700₺ on Steam, with the current exchange rates.) In essence, instead of paying 1700₺, you can get a 11-month subscription for EA Play Pro, allowing you to play EAFC24 and many other EA games.

I have been working closely with Valve since 2015, and I have observed that they can be quite money-oriented. However, the issue we are discussing here is not solely about money.

Firstly, Steam suggest that increasing prices, which would likely reduce sales and drive users to other platforms, is a better solution than maintaining the status quo. In essence, their proposed solution appears to involve trying to fix a problem by making it even worse(!), which will benefit other platforms.

We should keep in mind that Türkiye has the 7th largest user base on Steam. Do you truly believe that losing such a significant number of users to other platforms, which already provide more affordable alternatives due to Steam's current exchange rate policy, will benefit Steam in the long run?

Additionally, do you genuinely think that raising prices, removing the option to pay in Turkish Lira, and switching to USD will prove financially advantageous for Steam when compared to other platforms, which already provide more affordable alternatives or will it instead drive more people to use those other platforms?

This change will likely drive many players to the Epic Games, Xbox Game Pass and EA Play Pro subscriptions and will harm Steam and game publishers in the long term.

If you have been working closely with Valve since 2015, you should know that Valve's "suggested" prices aren't mandatory. Game devs/pubs still have the choice to ignore Valve's suggestions.

[Mad Scientist]

Those regions and currencies has basically no purchasing power, there will realistically be no felt loss from these two regions having to pay in USD or otherwise converted equal or greater pricing. All of the countries with purchasing power will still result in normal income for Developers based upon user interests that can & will buy the games. Those that couldn't afford it were never likely going to get it outside of a high sale anyway.

There are also plenty threads about this, but the notice means that it will happen on that date. It is not likely ever to change unless regions can get their currency value up to a minimal amount of value to be worthy of international trade.

[Yujah]

It is extremely annoying to those trying to be helpful that every instance of these posts -- and there have been many now -- attract irrelevant comments before it's pointed out that poster is simply operating on bad assumptions. I.e.,

Originally posted by ★ Wimhaen:

In 2023, the average AAA game price per copy is around $100, which is essentially equivalent to 2.813₺ with the current exchange rate. The minimum salary in Türkiye is approximately $450, and almost 50% of the population is paid the minimum wage. According to these statistics, Turkish customers may not continue to purchase games on Steam since the average AAA game will cost a quarter of their minimum wage.

No. The mere fact that you will be shown prices in USD does not mean you will be charged US prices. Regional pricing for Turkey is not being abandoned, the Turkish Lira is. Turkey will from now on enjoy the regional pricing of the MENA-USD Steam pricing-region.

These will be the suggested prices in MENA-USD (and LATAM-USD) as compared to US USD prices: https://steamdb.info/blog/steam-turkey-argentina-usd/

[rawWwRrr]

Valve is going to make the change regardless of how we all feel about it. They've analyzed the data and for them this is the best option. What others are doing is best for those companies. Turkish users need to decide what's best for them. If it's taking their video game business somewhere else besides Steam, so be it.

[nullable]

Originally posted by ★ Wimhaen:

Türkiye's Currency Change Is a Huge Mistake and Will Harm Steam and Game Publishers in the Long Term

Probably not. The TRY is the problem, changes to mitigate its volatility doesn't prevent Turkish users from buying games.

The change isn't meant to "benefit" Steam or publishers, but rather alleviate the burden of dealing with the TRY and ARS and shifting it onto the users who use that currency.

If subscriptions services are the solution for Turks, then what's the problem? People already use subscription services and Valve hasn't been trying to mitigate that at all. It's not a concern for them. So what else you got? Also since Turks are still paying publishers for their games, how does it harm publishers?

You also seem to be under the delusion that Turkish users are going to act in a unified way. I think if you dig really deep into your economics education you'll see that that's not very likely. And while Turks may make up a large group, their value as customers may not be 7th. You have to realize Valve has more data than you do, better data than you do and more experience and expertise on the subject. It's quite possible they're making a very informed decision compared to some of your assumptions and FUD.

[korthaci]

Türkiye is geographically in Eurasia. not in the middle east. but it is adjacent to this region. This is just beginning middle school geography knowledge. If anyone is interested in geography

[Yujah]

https://en.wikipedia.org/wiki/Middle_East

The Middle East (term originally coined in English [see § Terminology][note 1]) is a geopolitical region encompassing the Arabian Peninsula, the Levant, Turkey, Egypt, Iran, and Iraq.

[korthaci]

Originally posted by Yujah:

https://en.wikipedia.org/wiki/Middle_East

The Middle East (term originally coined in English [see § Terminology][note 1]) is a geopolitical region encompassing the Arabian Peninsula, the Levant, Turkey, Egypt, Iran, and Iraq.

https://en.wikipedia.org/wiki/Subregion#Eurasia
https://en.wikipedia.org/wiki/Subregion#Europe

You can see Turkey in the list of countries in both lists. Europe and Asia. There is also the title Eurasia. You can find it there too.
It may have been written incorrectly on Wikipedia some cases, but the fact that Steam management does not know this raises, questions about geographical games control.

[Yujah]

The fact of Turkey geographically being in Eurasia does not in any way mean it is not part of the geopolitical region these days referred to as the Middle East in English. The fact that you don't/didn't know that means just that; you not knowing that.

[nullable]

Geographic regions, political regions, economic regions can all be different things, like it or not.

[korthaci]

The truth is that Turkiye is a country that has been in Asia and Europe since the beginning of history. I don't see it as political or whatever way people accept it. This is true geographically and as a scientific fact.
For example, Tekirdağ, a Turkish city, is in Europe. Geographically. The city of Kars is in Asia. Again, geographically.

If the realities you are talking about are not based on geography, that is, science, which region can you talk about? Political beliefs are not our primary consideration. As I mentioned at the beginning, this is the case geographically. This is the case in all encyclopedias and serious scientific articles.

[nullable]

Being focused solely on geography to the exclusion of all other concerns or arguments may not be the big brain move you think it is. Pedantry often has limited value.

[Yujah]

Very well. Although admittedly it's somewhat good to see this instance of this thread for now not blow up with angry Turks either understanding or not understanding that which I said in my initial reply to it above, let us still leave this thread to that subject then.

[korthaci]

Of course, the TRY value is a problem for game buyers. Politicians may have something to do with this issue. We are all aware of this. Regarding pricing, of course steam can do what it wants. Frankly, it doesn't matter dollar or try for me.

I think you have an idea about the big brain. However, this issue is a philosophical issue and is quite unrelated to the main topic. Frankly, 90% of the conversations in forum type places go to waste, and people who are actually very nice, can little attack each other with ridiculous arguments, or so they think.

If you think that I am writing unnecessary information here and therefore being pedantic, it is not because I want it to be understood that way. This was not my intention. Please ignore this.

Since I thought that the geographical definitions on the information page had nothing to do with pricing, it caught my attention and I shared it. That's it.
I am not angry with you, good friend, there is no reason anyway. Best wishes, good people. Best regards

[★ Wimhaen]

Originally posted by nullable:

The TRY is the problem

We all know that TRY is the main problem here.This is why we are facing all of these changes. I don't think there will be anyone who would disagree with this statement.

Originally posted by nullable:

The change isn't meant to "benefit" Steam or publishers, but rather alleviate the burden of dealing with the TRY and ARS and shifting it onto the users who use that currency.

Yes, you are right. These changes are not meant to benefit Steam or publishers, but rather to protect them from the volatility of the TRY.

Originally posted by nullable:

You have to realize Valve has more data than you do, better data than you do and more experience and expertise on the subject.

Yes, Steam has more experience and probably a larger dataset than I do, but I see that they are using the current dataset and not focusing on the USD/TRY forecast and local taxation on USD-based spending. The current USD/TRY exchange rate is 28.16, and the expected rate before 2024 is 30. However, according to forecasts, the rate will reach 50 before 2025.

We need to consider local regulations to protect the TRY against the USD. For example, each bank uses different exchange rates, and the Central Bank of the Republic of Türkiye (CBRT) forces banks to use higher rates to prevent the country from rapid TRY volatility. For instance, the current rate is 28.16, and at my bank, BBVA, the rate is 29.45. Additionally, there are extra taxes for each USD-based transaction.

So, the formula for a $10 game on Steam would be like this: [10$(VATs-included) x 29.45] + VATl.

*VATs = Steam's 20% inclusive tax
*VATl = Local taxes for the UDS-based transaction

I believe that if the exchange rate continues to rise, there will be even stricter regulations. At some point, it may become almost impossible to buy a game on Steam. Does this bother Steam? I don't know. Should this bother Steam? Yes, I believe it should, especially since there are some games with a substantial Turkish player base and a significant market in Türkiye, such as the Euro Truck Simulator series.

Originally posted by nullable:

If subscriptions services are the solution for Turks, then what's the problem?

I don't think it's a problem for local customers, as these subscription methods offer top-notch games at very affordable prices. However, there are some questions for which I can't find the answer:

1) While these subscription methods can maintain the balance between the exchange rate and the purchasing power of Turkish customers, why can't Steam do the same?

2) If Türkiye's purchasing power is not as strong as in other countries, how will those publishers benefit from the currency change that might significantly lower sales in the future, potentially below the current purchasing power? Do we really think that this will help those publishers protect themselves from the volatility of the TRY, or will it just push more people not to buy games on Steam and redirect them to the subscription methods?