Just wanted to ask why does steam have different prices for games in different regions? I mean for me new games cost almost 50€ and for others it costs like 30$. The main question is why the hell are prices so different?

12 years ago*

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Because publishers insist upon it.

12 years ago
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But it does not make any sense, does it? I mean you can just buy games cheaper and resell them to other people with a higher price.

12 years ago
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True, but most won't. It has some to do with the different incomes in those places, some to do with what they can get away with charging, and some to do with other things I don't even know about, most likely.

12 years ago
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I'd love it if publishers actually set the price according to national income, so I would not have to get ME2 for US$50. And here in Thailand, ~US$400-500 is an average monthly salary for people with bachelor's degree.

12 years ago
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That's just them not noticing; the Thai market isn't really important to them so they don't focus on it. I guarantee you if Thailand was as large a consumer market as Russia they would figure out their pricing immediately.

Put it this way, they make 60% of their income from the US, 30% from western Europe, 8% from Russia, and 2% from the rest of the world. Obviously they're going to focus on the profit centers -- which explains why all the games we see are so westernized, with American and European accents, default English, western appearances and sensibilities, and for shooters they're usually from the perspective of Americans being the "good guys." It's just catering to the people who make you money.

12 years ago
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I would be happy just to get the default US price really, don't have to be cheaper like in Russia.

But x2 the price because Asian market is deem insignificant sound quite illogical. Why would you double the price in the market where average consumers earn considerably less? If the market is not so important, why not just use the normal price, why care enough to double the price?

12 years ago
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Yeah, it's pretty dumb.

12 years ago
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This. Publishers discriminate consumers based on their region. If they think Europeans have more money than Americans, they will raise the price there.

12 years ago
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Still it seems awkward. Europeans have to pay for overpriced games. Price is higher 2 times than for Americans, They pay about 30$, we pay about 65$...

12 years ago
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EU prices are generally of the same numeric value (10 USD for 10 EUR), but since EUR is around 20% stronger then USD we actually pay more. When I asked some Sweden based devs about this difference, they said it has something to do with VAT. They said EU prices are calculated as US prices + VAT (usually 20%).

12 years ago
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Funny thing is Europeans have a lot less money (like $10k USD/yr) than Americans when it comes to disposable income. People in the US are just a lot less willing to pay more for their products because everything is so cheap there due to economies of scale and whatnot.

12 years ago
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Still they should set prices accordingly to national income, because the salaries are not that high, that we could pay much money for games.

12 years ago
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What the hell are you telling? This might apply to East Europe but they pay their own low prices anyways (Ukraine, Russia etc). In Germany the average income per year is around 40 000€ (more than 50 000$). We have more money to use than you think. Sometimes I really wonder what Americans think about us Europeans...

12 years ago
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Well, it seems we are almost in the same boat ,so don't take it personally, this is just how the world goes ;D

12 years ago
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Disposable income. I'm not even an American by nationality and I grew up in Europe, so I'm not sure what you're really accusing me of.

The simple fact is that after taxes and essential costs, Americans have an absurdly higher amount of disposable income. Germany is very high up there too, but even it's not close: http://en.wikipedia.org/wiki/List_of_countries_by_per_capita_personal_income

This is a result of a lot of things, from America being absolutely huge so people can pay less in taxes individually but when it's all combined it adds up to trillions, to economies of scale and the availability of things like open land for development, farming, etc. The point is, Americans earn the same (or less in some cases) than people in comparable developed nations, but after they've bought their food, paid their taxes, and are looking to buy luxuries like games, they have a lot more to spend. There's a reason every company and marketer looks at the US first.

Note: This has nothing to do with how well-off people in some parts of Europe are. For example, I'd argue Swedes probably enjoy a much higher standard of living than Americans. But the thing is, they pay a lot of money into their taxes (upwards of 60%) while Americans pay around 15%. That's pretty notable in terms of spending money. Of course, it also means things like healthcare end up being issues.

12 years ago
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I do not accuse you of anything ;) Oh and by the way thanks for answering. Appreciate it ;)

12 years ago
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Well, the American way of doing doesn't work evidently, seeing their debt rising enormously year by year.
OT: Good to see that statistic, although its pretty old it shows that we have more than 10 000$ "disposable income" per year. Just wanted to make that point, seen too many ignorant Americans not knowing about other wealthy countries in this world so my alarm bells rang.

12 years ago
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Everyone's debt is rising enormously every year; it's not really due to the economics of the American system so much as the amount of absurd spending involved (like simultaneous decade-long wars), but we see the same trend even in places where taxes are high. Hell, Scandinavian countries have larger public debt than the US does in terms of GDP.

And as far as ignorant Americans go: the same shit happens in every country. I used to live in Spain and then the UK before I moved to the US and there were just as many idiots there as here. It just happens that America is the only country that gets huge exposure outside its borders, so we get to see stupid Americans on TV and whatnot but not stupid Austrians. If the US was actually populated by ignorant idiots any more than other OECD nations, it wouldn't be the superpower.

But yeah, it's just all a matter of priorities. America has this attitude of individualism unlike most other developed countries, which leads to their taxation being minimal (which is great) but also to income inequality being greater (which is obviously bad). It's a tradeoff that different societies handle in their own way, and the American way, while possibly flawed, leads to them having a lot larger disposable incomes to buy luxuries and things with.

Plus, your mind would be blown by how cheap things like food, gas, housing, etc. are here. It's crazy, especially considering people aren't really any poorer. The US just lucked out by having a huge landmass with extensive resources and by having an absurdly huge population of high income people. When you have 300m people making $45k/yr on average, your country is suddenly the most attractive market in the world, even if Qatar has 1m people making $70k/yr.

But yeah, speak to any MBA or corporate exec in the world and they will tell you their primary focus is the US, then western EU, then the rest of the world in that order. It doesn't matter if the company is based out of China or Argentina.

12 years ago
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European & other versions often have more languages which can affect prices as you often need to provide support in those languages too.

12 years ago
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You have a point ;)

12 years ago
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Cause if a game costed 50 euros in here, not a single one person would buy it.

12 years ago
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But tell me how should I save up 50 euro ? When I could buy 2 games for that price in America...

12 years ago
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Because they are human and want people to enjoy the games they make, rather than make it absurdly expensive for people in certain regions. This is more in regards to the difference between regions where the per capita income is lower in one region than the other, etc

12 years ago
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Well in my country income is not that high though I have to put up with cosmic prices ;)

12 years ago
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That is rather unfortunate then :(

12 years ago
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Like now CoD:MW3 for me cost 59.99 Euro, for Americans 59.99$ :D It's just hilarious ;D

12 years ago
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And for Ukraine 30$.

12 years ago
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Ukraine is not too far from Lithuania I think ;D But still prices have big difference :D

12 years ago
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Yeah, you just got the unfortunate end of the deal since you were bundled in with western Europe, which includes Germany, France, the UK, etc. where people can actually pay that without feeling pain. I'm sure publishers would address the problem if it came up, but I can't imagine the Lithuanian gaming market really means a lot to them since it isn't really that big.

12 years ago
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Well no argument here, that means we get the bad part of deal ;D

12 years ago
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Because not everyone in the world has the same amount of money to spend, and if publishers sold games for Russian prices, they would go bankrupt and we would never see any more AAA titles. So what they end up doing is selling them for higher prices where people can afford it, like NA and western EU, and then they turn around and sell it cheaper in poorer regions since that's the only thing they can do. If they didn't sell it cheaper in poorer regions, no one would buy it and [even more] people would pirate it.

As for the price difference between the US and EU: it's jut price gouging. Even though Americans have more money to spend, they aren't used to paying more for products since almost all goods are notably cheaper in the US than in Europe for many reasons -- primarily economies of scale. As a result, Americans' attitudes toward what constitutes a price worth paying is different from Europeans and companies have done the market research to understand they can charge Europeans more despite their lower disposable incomes.

None of this should be confusing or new to you if you have any sense whatsoever. This exact situation applies to pretty much every product in the world. It's also the reason most games seem to be geared toward Americans and western Europeans in terms of plot and whatnot even if the developers are not from either location.

12 years ago
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But tell me what is the point to have games at cosmic prices? People don't want to buy legal games because they are overpriced, they choose to pirate them and have the same fun in private servers. All I see that publishers are kinda at loss here.

12 years ago
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Not sure what you mean by cosmic prices. They pick the prices they do in wealthier regions to earn money, because if they set the price to what they do in poorer regions, they would go out of business. Is this really confusing to you?

12 years ago
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I do not want to whine but in my region income is really low, but still prices are rather high... In my country economy is really shitty so prices like these to pay for a game are kinda high

12 years ago
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What country? It could be that your country is just too small to matter to publishers so they never really bothered to do market research and figure out what price to set their games at.

It could also mean that people are accustomed to high prices and are willing to pay that regardless. This is actually pretty accurate for a lot of Europe, since they don't have the same scale as the US which ends up making most products pricier. For example, America has huge access to oil, so gas prices are way cheaper. In the same way, things like TVs are cheaper because the US has 300 million people looking to buy them, so the transportation and infrastructure costs are quite low per capita. On top of that, food in the US is laughably cheap because of the huge amount of farmland available. Because all this is so cheap, Americans aren't used to paying a lot of things and aren't as willing. The converse applies to Germany for example.

Ultimately, companies do extensive market research to figure out what prices yield the highest profit margins and set products at that. It turns out, in places like SE Asia those prices are extremely low and there really aren't any profits to be had, so they have to rely on western markets to stay in business.

12 years ago
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Yeah my country is small and is like dust in the wind compared to US in every aspect I think.

12 years ago
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That sucks then. :(

Basically it's just an afterthought then. Companies need to address their bottom line and target the largest/wealthiest markets first if they want to be successful, which usually means catering to the US and western Europe (and soon China). Of course this sucks for people not in those places, but at the same time the only reason half the things you have today exist is because some company was trying to make money off one of those large markets.

12 years ago
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But would it not be better for them to arrange lower prices for countries with lower income? I mean if the prices were lower they would sell more games and still they would get rather big profit.

12 years ago
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Yeah, they do. Like I said, your country might just be unimportant to them and they haven't really paid enough attention to fix the pricing. For good examples, look at prices in places like Russia however. Since Russia is huge, they have devoted a lot of resources to figuring out what the right prices are and they pay close attention to the region.

Basically, if your country only accounts for .001% of their profits, they don't really care. And unless your country is in the OECD, this is probably the case.

12 years ago
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Might be ;D

12 years ago
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:(

12 years ago
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usualy kids do that guys who have work can buy games which they want but kids who ask money for mother cant

12 years ago
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You see I can argue with your logic, because if you are kid or adult does not matter at all. Money is still money and you have to pay it. I would really like to pay 30$ for a game instead of usual price.

12 years ago
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To maximize revenue which will result in maximized benefit seeing as the cost of creating the good is not really linked with the number of goods sold.

This happens to a lesser degree with most things that are sold globally, have a lock at the big mac index . As you can see, prices vary a lot and this for a good that includes effective local cost for each good sold such as labor, infrastructure, ingredients, etc.

12 years ago
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Because they hate some countries

12 years ago
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Good answer :D Made me smile :D

12 years ago
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+1 to that

12 years ago
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EA seem to hate my country. Look at the price of their games here.

12 years ago
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Same for me o.O

12 years ago
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publishers, economics, laws, politics, greed, ignorance, capitalism, and physics

12 years ago
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And why did you include physics? ;D

12 years ago
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speed of light -- have to take that into account for most things

12 years ago
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Oh ;D

12 years ago
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Closed 12 years ago by HappyMarsh.