Why does a game publisher do this?

[Michael Kim]

I just happened to discover that the game Spore on Steam is listed with different prices in different regions. There may be more games that does the same thing.

Well, there must be a reason for it, but I don't understand

[Mmmmyum]

It's EA. That's all there is to say really. Worst company in the world

EDIT: It could be exchange rates. I'm going to guess those are Canadian Dollars (do they even exist?) and Euros.

[stupid_chris]

It's EA. That's all there is to say really. Worst company in the world

EDIT: It could be exchange rates. I'm going to guess those are Canadian Dollars (do they even exist?) and Euros.

Of course not. Don't be silly, there is no such thing as money in Canada. We just exchange moose fur and maple syrup for services.

On the other hand, this totally could be exchange rate. Apart from this, it could be local policies from different countries affecting the prices. So is law made. Knowing China, that wouldn't surprise me of them. As for Germany, the price difference is enormous. That's kind of weird, nearly feels like an error on their side. Can't tell though.

[Godot]

With regards to Europa vs. US and Canada the reasoning always is VAT (which, in contrast to the US of A has to be included in (most) european countries).

Therefore (despite the fact that, if real exchange rates were taken into account, you should see a much lower €-price) you will rarely see a game on Steam where the US-$-Price (or, in this case, canadian price in US-$) isn´t taken 1:1 for the €-Prices

Edited November 28, 2013 by Godot

[stupid_chris]

There's no canadian price in there. .cn is China, not Canada. Canada is .ca

[Godot]

Ah O.K.

Well, I have to admit that, even if we take into account a 1:1 conversion of $ vs. €, it is strange that the US-prices are 5$ below the rest of the world.

Maybe some Super Duper extra sale for the US of A (that isn´t listed within the 50%)? Or are the normal (100%) prices for spore (outside of sales) de facto 10 $ cheaper for US customers than for everyone else?

[nhnifong]

So can you get the best price by using a proxy in the country of your choice or are they basing it on the location of your credit card?

[Monkeh]

Today's conversion rate states:

1 US Dollar equals

0.73 Euro

[nhnifong]

And 0.001 bitcoins

[Michael Kim]

Of course not. Don't be silly, there is no such thing as money in Canada. We just exchange moose fur and maple syrup for services.

On the other hand, this totally could be exchange rate. Apart from this, it could be local policies from different countries affecting the prices. So is law made. Knowing China, that wouldn't surprise me of them. As for Germany, the price difference is enormous. That's kind of weird, nearly feels like an error on their side. Can't tell though.

WOO, how much do you know about China?

Well it could not be exchange rate. Items in the Chinese store on Steam are listed in USD, although we pay in RMB. So that's 29.99USD. And it's nothing to blame Chinese polices because it's also 29.99USD in South Korea (cc=ko).

Btw I feel really sorry for people in Europe

[dharak1]

I live in Canada and I believe the prices are USD here

[The Destroyer]

You know, it's not just online.

Stores rip Canadains off at things. For example, Halls, made in Canada, sell for 88% cheaper in the united states. Or a hotwheels toy for 50% cheaper!

Even cars you can save thousands by shopping in the US- But most companies don't allow people to buy it.

Source: http://www.cbc.ca/marketplace/episodes/2012-2013/price-wars

[bsalis]

Prices are set to what the market will bare.

http://en.wikipedia.org/wiki/Price_discrimination

[lordlundar]

To put it in short terms, because they can.

I worked retail when the Canadian Dollar shot up to Parity levels. Prior to it the excuse for the higher prices was "it's due to Canada's weaker dollar". When Parity hit it became "shipping and handling surcharges and taxes". It was all BS because it boils down to "because we can". It's the same thing for Australians who are still paying nearly double for games despite the fact that the exchange and various other reasons haven't been in effect for at least a decade.

[Randox]

It really comes down to different markets, as stated. It might have gotten that way because of the exchange rate, but when the CDN reached parity with the USD, that doesn't actually matter to the average Canadian because we aren't paid in USD, so there is really no reason for the prices to change. There is generally a disconnect between the exchange rate and domestic pricing for consumer retail as long as the exchange rate stays in a place where prices don't have to change to preserve a floor profit margin.

So for Australia, it was once more expensive to get games there. Now their just milking the status quo.

Edited November 30, 2013 by Randox

[Godot]

To put it in short terms, because they can.

I worked retail when the Canadian Dollar shot up to Parity levels. Prior to it the excuse for the higher prices was "it's due to Canada's weaker dollar". When Parity hit it became "shipping and handling surcharges and taxes". It was all BS because it boils down to "because we can". It's the same thing for Australians who are still paying nearly double for games despite the fact that the exchange and various other reasons haven't been in effect for at least a decade.

Sounds like the experience we in germany made when CDs as audio media came up.

When the first CD albums came up, their price was artificially inflated, with the reasoning behind this being "it is only a short term measure, to finance the retooling of factories from vinyl records to CDs".

Well, fact is, that during the following years the price remained on this level, with no intention of the recording industry to lower them again (to vinyl record standards).

Only when the internet came up, putting pressure on the recording industry with cheaper alternatives to physical music records, the CD prices plummeted.

[Seret]

OP, what part is it that you don't understand? Everything is sold for slightly different prices in different places. This can be due to exchange rates and the different value of money in different countries.

[ZedNova]

Maybe it costs extra money to ship the download to your country?

( I'm joking of course )

[Michael Kim]

OP, what part is it that you don't understand? Everything is sold for slightly different prices in different places. This can be due to exchange rates and the different value of money in different countries.

So "slightly" is what you use for a 50% difference?

EDIT: And it could not be exchange rate things because they just charge in USD, ok?

[Seret]

Just trying to explain the difference to the OP. This kind of thing is pretty common. It can be down to taxes, different levels of earnings, or just barefaced cheek. It's not unusual.

[rkman]

Just trying to explain the difference to the OP.

Exchange rate does not explain these large differences in price.

What does explain the differences is the fact that the price of products is determined not simply by cost and profit margin, nor simply by supply and demand, but largely by "what the market will bear". (as pointed out previously by bsalis; http://en.wikipedia.org/wiki/Price_discrimination)

[Seret]

Exchange rate does not explain these large differences in price.

Er, going back and re-reading the thread I don't think anybody has suggested it's just exchange rates since about the first page.