UK Game Prices Could Rise in New Year

Logan Westbrook

Transform, Roll Out, Etc
Feb 21, 2008
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UK Game Prices Could Rise in New Year

Distributors aren't budging on prices, so retailers may pass the cost of an upcoming tax increase onto British consumers.

UK gamers could be getting a rather unwelcome late Christmas gift this year, in the form of higher prices. Value Added Tax, or VAT, will increase from 17.5% to 20% on January 1st, and despite calls [http://www.escapistmagazine.com/news/view/105806-UK-Retailers-Worried-Over-Tax-Hike-Hurting-Profits] from the retail sector to lower trade prices, one platform holder has ordered its official distributor to freeze its prices at current levels, with another apparently planning to do the same shortly.

If the prices remain unchanged, retailers essentially have two options: either they absorb the tax increase themselves and cut into their profit margins, or they fall in step with distributors and pass the increase on to consumers. Obviously, neither is ideal, and could be especially damaging to the smaller, independent retailers who are already struggling to compete with supermarkets and retail chains. The increase in tax will mean that game prices will increase by £1 and console prices will increase by £5 - £6.

Higher prices may also affect what stock retailers carry. One retailer suggested that consoles would be harder to sell at the higher prices, and the ratio of high margin to low margin stock would change to reflect the new retail situation. Pre-owed sales, already a significant source of revenue for retailers, are likely to take on even greater importance, being both cheaper and more profitable than new stock.

Source: MCV [http://www.mcvuk.com/news/42254/Retail-told-to-pass-on-VAT-increase?utm_source=feedburner&utm_medium=feed&utm_campaign=Feed:+mcvuk/oXMK+(MCV:+games+industry+news)]






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C95J

I plan to live forever.
Apr 10, 2010
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NOOOOO! Not £1!

These price increases are just getting absolutely ridiculous now...
 

Onyx Oblivion

Borderlands Addict. Again.
Sep 9, 2008
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RISE! RISE!

Make my monster grow!

BWA HA HA!

I'm totally responsible for this, as I am an evil American.

OT: *insert Pound symbol here*1 isn't too bad, at least. Damn taxes.
 

88chaz88

New member
Jul 23, 2010
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Onyx Oblivion said:
RISE! RISE!

Make my monster grow!

BWA HA HA!

I'm totally responsible for this, as I am an evil American.
You guys have more income tax to deal with so it pretty much evens out in the end.
 
Jul 22, 2009
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Well GAME gives me huge discounts anyway... possibly because I know almost all the people who work there by name, possibly because I have about 3 discount cards.

Who knows?

Point is, this won't affect me much.
 

BrotherRool

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Oct 31, 2008
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They'll just use this as an excuse to raise game prices by £5 and make an extra £4 profit. The 99p price is already arbitrary and based on psychology rather than profit margins. The same goes for consoles. The psychological difference between £199 and £205 is more important to them, otherwise they'd charge irregular prices already
 

SalamanderJoe

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Jun 28, 2010
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I was worried that the increase would be like £10, BUT ONE POUND?!

In all fairness, an extra pound on games is hardly anything, and especialy with all the deals on new games, 2 for £20 deals and pre-owned sales no one will even notice.
 

88chaz88

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Jul 23, 2010
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BrotherRool said:
They'll just use this as an excuse to raise game prices by £5 and make an extra £4 profit. The 99p price is already arbitrary and based on psychology rather than profit margins. The same goes for consoles. The psychological difference between £199 and £205 is more important to them, otherwise they'd charge irregular prices already
If they raise them at all. The thing about our VAT is it's inclusive and retailers need to stay competitive. I'm willing to bet that the increase will affect businesses far more than consumers.
 

Tahmoh

New member
Sep 1, 2008
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I can see alot of game companies using this as a reason to raise prices to £55+ for big console titles and probably more for actual consoles(no doubt the £199 xbox 360 slim will become closer to £209.99 or something similar)

As mentioned earlier though thank god for amazon and play
 

Patton662

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Apr 4, 2010
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I don't remember the last time I went into a GAME or HMV. Sucks for the general public though.
 

Petromir

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Apr 10, 2010
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Don't half the time they just set things at a mutiple of £5 and then take off a penny? If so this'll make prices look abit wierd.
 

TheGuy(wantstobe)

New member
Dec 8, 2009
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Well the price increase shouldn't even be £1 anyway for a £40 game. It should be around 71p so they're just using this to increase the margins on games!
 

electric discordian

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Apr 27, 2008
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More great news for the British consumer, they prices will not rise by a pound they will rise by £10 because that is the nature of market forces. They have a mandate to raise the cost and get away with it.

Their hands are clearly tied by forces more powerful than they are!
 

Terramax

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Jan 11, 2008
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C95J said:
NOOOOO! Not £1!

These price increases are just getting absolutely ridiculous now...
You say that, but it wouldn't surprise me if some stores take advantage of that and put game prices up by a little more.