Top
70°

Why games are not expensive

Digitally Downloaded writes: "A source of endless frustration for me is how often I hear or read the words 'games are expensive.'"

Read Full Story >>
digitallydownloaded.net
The story is too old to be commented.
Ninjeska1987d ago

I think some places can still safely say "games are expensive". Case in point: Australia. Over here we're paying a recommended retail price of $110 AUS (irrespective of the comparative weight of the Australian dollar). There's no cause for excuses of shipping or Aus market factors, as there is little to no price drop for digital downloads.

It's ridiculous; so much so that the Australian government has (finally) announced an inquiry into the prices of games and technology in Aus compared with the international market prices.

I CALL HAX.

MattS1987d ago

The Australian government also conveniently decided to ignore that the average wage in Australia is a lot higher than the US, and the cost of business is a lot higher in the US.

Good to see them sticking up for the people though. It's not like they're trying to turn around from being the least popular government in power ever here or anything.

Ninjeska1987d ago

Oh I see, this article is more about complaining.
Let's just call in factors like presumptions on the average wage, which never accounted for the original prices of technology in Aus vs. US prior to inflation resulting from the strong Aus dollar. Then let's suggest the government are trying to earn votes with something relating to video games. Seems legit.

snp1987d ago (Edited 1987d ago )

The Australian government also conveniently decided to ignore that the average wage in Australia is a lot higher than the US
------

US median wage in 2006 was $50,233 (USD). Australia in 2007 the average wage was $44,820 (USD). Mortgage + other costs of living differences and Australians, on average, have far less 'disposable income' than US citizens.

---
and the cost of business is a lot higher in the US.
---

How so? Company tax is fractionally higher ~39% verus 37%, but rent is _significantly_ higher in Australia - making up that gap and then some. Red tape is costlier. Utilities (electricity etc) are also significantly costlier in Australia.

US companies do it - gouge Australians by up to 350% - because they can and they've always got away with it. Pre-internet no-one even knew. There's no other reason. This isn't a first world country versus a third situation. It's the big guy picking on the little guy. Simple.

Offshore operations in the digital realm our parallel importing laws are especially powerless to protect us.

Not that i'm saying anything new. The lack of justification is precisely why there are calls for inquiries. Also why Wozniack (sp), the US co-founder of Apple, doing a speaking tour of Oz, has called the prices Australians are charged 'outrageous' and 'indefensible'.

MattS1987d ago

@snp: Now try current statistics. Average Australian wage in 2011: A$68,791.

Source: Australian Bureau of Statistics

Average US wage in 2010 (the most up to date info I could find in a quick search of Google): $26,364

Source: http://www.huffingtonpost.c...

Also read again: I said the average cost of doing business in Australia is far higher. This is why goods and services in Australia cost more than they do in the US, and why they SHOULD cost more than they do in the US.

Too many people look at the exchange rate and assume that's all there is to international pricing. That, of course, to anyone who knows anything about real economics, is crap.

Kurt Russell1987d ago

MattS

A quick google search on US average wage does not come to $26,364... If that was the case the US would be in a very sorry state. In 2010 is was 41.6k it hasn't been as low as you suggest since 1996 just check ssa.gov

snp1987d ago (Edited 1987d ago )

@snp: Now try current statistics. Average Australian wage in 2011: A$68,791.

Average US wage in 2010 (the most up to date info I could find in a quick search of Google): $26,364
-----

Trouble with that argument is the gouging has been going on for 25 plus years and the Australian dollar is the highest it's been in 30 years. A very near-term-only view warps things somewhat. The vast majority of the time the US has had larger wages with far more disposable income and charging it's customers far far lower prices.

----
Also read again: I said the average cost of doing business in Australia is far higher.
----

You didn't actually "and the cost of business is a lot higher in the US.", but i'll accept you meant to.

----
This is why goods and services in Australia cost more than they do in the US, and why they SHOULD cost more than they do in the US.
----

That's reasonable, but misses the point. Wholesale prices from US companies to US retail are significantly lower than to Aus retail.

This isn't about OZ retailers passing on costs. Cost price for them is double the US before anything gets factored in.

In the case of digital, the servers are held off shore. There are no extra costs AT ALL in supplying to Australian customers over US customers. GST - doesn't exist. Rent, corporate tax - none of these things are charged to US companies. And yet Dead Space 2 costs $70US to OZ customers; $20US to US customers.

----
Too many people look at the exchange rate and assume that's all there is to international pricing. That, of course, to anyone who knows anything about real economics, is crap.
----

Absolutely, but there's a lot more gouging and downright ugly gouging going on than you're admitting to right here (i suspect out of a sense of misplaced patriotism).

+ Show (2) more repliesLast reply 1987d ago
Jdoki1987d ago

Most people I know who complain about games are those with some sort of entitlement mentality. They think they deserve the game NOW and want to pay as little as possible.

Nearly all games get a price drop soon after launch, and / or a re-release on budget - so gaming can be extremely cheap. Factor in that there are often 'Game of the Year' or other editions that include all DLC AND are released at budget price and gaming is really cheap - but only if people are willing to wait.

I have no issue with the price of games... what I do have issue with is the price gouging on DLC that is released simultaneously with the game launch..

Kran1987d ago

"Why games are not expensive" by Digitally Downloaded, who probably digitally download their games, which BTW tends to be cheaper.

opinska1987d ago

they are f$#king expensive for me on release date (so f u article)

Kyosuke_Sanada1987d ago

I wouldn't say games are expensive but there are hardly any that justify the price now-a-days which leads to these types of comments....