Australia Asks About High Game Prices

[grigjd3]

Barring Australia, games are NOT expensive. Sixty bucks for ten hours of entertainment is about six dollars an hour - on par with going to the movies (if you don NOT buy a soda and popcorn) and less than the average hourly cost of going out to dinner and having wine. In fact, in modern societies, games are often the least expensive option for entertainment available.

As to why games are expensive in Australia - prices are set when a new generation of consoles are released. That is, the Australia price was set in 2005 with the exchange rate of the time and the price hasn't changed. The price hasn't changed because consumers are still buying games. The reason consumers are still buying games are that games aren't actually that expensive.

Games do cost too much - but that doesn't mean they are expensive. These are two separate concepts. Games cost too much because game companies are not managing to maximize profits on the games they make. There is almost certainly a lower price point at which game companies would make more money but they haven't found it yet.

In short, games are not expensive. Games do cost too much. Australia is being ripped off in the meantime.

 

[Metalrocks]

yes, you really pay way to much for a game down there. importing games from the US (ebay), including shipping, was way cheaper then getting it at a store.

when i asked a shop once why the prices of games are so damn high, some have told me because of the included taxes and that the shipping costs a lot. i can understand that a bit since australia is at the end of world but its still insulting why you have to pay so much for a game wile others pay less. even on steam you pay 50-60 USD.
maybe things will change once i get back to australia in october.

 

[Evil Smurf]

On behalf of my colleagues in Australia:

"It's about bloody time, ya wankers!"

There, did I say that right?

Yep. Now drink this VB and shear a sheep. *checks you have done that* You are now an Australian citizen! Congratulations!

What's a VB? For that matter, what's a sheep? I live on the East Coast in a suburb, I know OF barnyard animals, but I've never actually been physically near one. Except maybe on some grade-school field trips.

This is a VB!
http://www.annandalecellars.com.au/SiteFiles/annandalecellarscomau/images/large_7854_VB%20Stubbies.jpg

 

[Necabo]

compared to the EURO they pay less more than comparing it to the USD

100 AUD = 77 EUR = 97 USD

max payne in europe = 60 EUR (77 AUD = 75 USD)
http://www.bol.com/nl/p/max-payne-3/1004004006590805/

considering I can occasionally buy new games with a student income and living (meaning almost zero), It may seem there is just a little margin there which may be bound to their minimum wage, which is not that weird (considering their minimum wage is about 1,4 times higher than here). And living here is not cheap either.

 

[ACman]

Australian salaries are much higher and the conversion rates, they are actually paying less than any place in the world. $1AU is not equal to $1US. Even their minimum wage is like $18AU/hr

I am so sick of that line of reasoning. The claim that minimum wage is somehow a reflection of purchasing power is ridiculous.

The AUD is currently worth 0.9724 USD. There is no significant freight or conversion costs for releasing a piece of software. The only reason for software to cost 50-100% more in Australia is publishers agreeing to take profit windfalls from the drop of the American dollar rather than to act competitively.

No they do it because you all act like good little bitches who will still buy them you just dont have the control to not buy them stop buying and this will stop!

I was pointing out how this situation came to pass not the solution

Regardless that's not how the Consumer/Publisher Relationship should (Nor can) work. How many "boycotts" have you seen in this industry that get called and immediately fall over because people cave. Boycotts don't work.

Publishers should instead realize that they will SELL MORE at lower prices and since the marginal cost of producing another software unit is zero

Currently the publishers can set prices in Australia. THIS IS PRICE FIXING. And there are laws against it. It was solved in the Book industry by allowing parallel importing. I take heart that this committee might result in a similar situation for games.

 

[andrew201292]

Australian salaries are much higher and the conversion rates, they are actually paying less than any place in the world. $1AU is not equal to $1US. Even their minimum wage is like $18AU/hr

"Minimum wage $18/hr" Haha You're funny.
And our dollar was stronger then the US (Im not sure how it is now) but when it was stronger if something was $60US on steam it should have been less than $60AU.

 

[valkeminator]

About time they thought of this... I'm getting tired of us being ripped off. I remember the day when prices on Steam suddenly inflated.

Inflation on brick and mortar store price makes sense, as you have import tax, distribution fee and so forth... but inflating the price on Digital distributors like Steam ?? NO! I say NO!

I thought Digital Distribution was meant to be the solution for that.

Sure Aussies may earn more wage, but keep in mind we still have a relatively higher living cost. I don't see why it has to be Video Games or electronics to be given the unfair treatment compared to other luxury goods.

 

[Zeriah]

Having a high dollar is quite bad for a country. In order for the economy to function normally when dealing with a high dollar you must be able to import things for a much lower price than you would with a low dollar. This is because when exporting products with a high dollar, you have to sell things a lot cheaper internationally than you would with a low dollar.

For example if we ship off some wool to the US for US$50 when our dollar was 0.5 to your 1, we have essentially made $100 AUD. When our dollar is 1-1 or higher we have made only $50 (reverse this when importing). Obviously this is quite bad for businesses that rely on exportation. The upside to this is we can import goods a lot more cheaply. It is a balance that has to be maintained, otherwise it can have a negative effect on the economy. This is why China, the biggest exporter in the world, refuses to list their currency and instead keeps it low because it is much better for internal growth.

Also the people linking the higher minimum wage are clueless. We are much more of a socialist country than the US, our minimum wage is quite high because we look after the bottom class a lot more than you do in the US. The average wage is a lot closer than the minimum wage is (though still higher) to the US. We pay FAR more in taxes, the median price of a house in Sydney is $577,000 (this is not just the inner city, it also includes the huge urban sprawl which goes out like 50km), the cost of living in Australia is one of the highest places in the world (5th actually, the US isn't even in the top 25). We are not a comfortable nation compared to the US, especially for new home buyers or people who rent.

We don't pay as much in comparison to the US for any other products except software, books and electronics (though they are still higher than what you pay in the US). If we go off of how much we should be paying for games depending on cost of living and average wage, we should be paying around $70-75 for new release games. However even that is stupid, as this will negatively affect the economy (since we will be making less than we would in exports, while paying the same in imports).

 

[RvLeshrac]

On behalf of my colleagues in Australia:

"It's about bloody time, ya wankers!"

There, did I say that right?

Yup.

Australian salaries are much higher and the conversion rates, they are actually paying less than any place in the world. $1AU is not equal to $1US. Even their minimum wage is like $18AU/hr

But when a gov makes the minimal wage twice what 'others' pay out, then see products being sold for twice what 'others' pay for...

Er, uhm... Never mind. I've bitched the same song often enough.

EDIT: *smiles at the above post ; )

both of these

yes, everything might be expensive in australia, but so is it over here, gaming is no different from any other market. seriously, try surviving on 8$/hr while scrounging for solid hours at a job, it won't get you many video games after taxes and other bills kick in, i promise you that.

Thank you for saying that. I get so annoyed when they're like "YOU GET PAID MORE SO IT'S OK TAHT EVERYTHING IS MORE EXPENSIVE"

When you get paid less than double what I would if I had a minimal wage job, I would care. When products cost you more than double what they do here, I might care...

But you, and they, don't.

It's sad really. How can you explain feeling sorry for yourselves like this?

It's so annoying when people continue to ignore that.

Australia's minimum wage is $15.51 per hour, or ONE DAYS WORTH OF WORK AT MINIMUM WAGE FOR A BRAND NEW AAA VIDEO GAME!!!!

Bloddy wankers like to think it's different on the other side of the pond, well.... IT BLODDY WELL ISN"T!

It's about double the pay, and double the price for everything. STFU already, same boat doods.

You should probably look up purchasing power parity.

I can't speak for the people earning min. wage. I've got a desk job with News corp here. I do ok. However, if you are on minimum wage, then you've probably got other priorities than spending a day's pay on a game. Just saying. Cost of living in this country is much, much higher than everywhere else that isn't Switzerland.

Just so you're aware, $15/hr in New York City will *almost* keep you off the street.

 

[Programmed_For_Damage]

You only have to put with what you're willing to except. You don't want publishers boning you Australia? Be prepared to do something about it!

I do. I go to places like K-mart or Big-W where the new release can sometimes be $70 (if the wind is blowing in the right direction). EB can kiss the darkest part of my lily white arse.

 

[ResonanceSD]

On behalf of my colleagues in Australia:

"It's about bloody time, ya wankers!"

There, did I say that right?

Yup.

Australian salaries are much higher and the conversion rates, they are actually paying less than any place in the world. $1AU is not equal to $1US. Even their minimum wage is like $18AU/hr

But when a gov makes the minimal wage twice what 'others' pay out, then see products being sold for twice what 'others' pay for...

Er, uhm... Never mind. I've bitched the same song often enough.

EDIT: *smiles at the above post ; )

both of these

yes, everything might be expensive in australia, but so is it over here, gaming is no different from any other market. seriously, try surviving on 8$/hr while scrounging for solid hours at a job, it won't get you many video games after taxes and other bills kick in, i promise you that.

Thank you for saying that. I get so annoyed when they're like "YOU GET PAID MORE SO IT'S OK TAHT EVERYTHING IS MORE EXPENSIVE"

When you get paid less than double what I would if I had a minimal wage job, I would care. When products cost you more than double what they do here, I might care...

But you, and they, don't.

It's sad really. How can you explain feeling sorry for yourselves like this?

It's so annoying when people continue to ignore that.

Australia's minimum wage is $15.51 per hour, or ONE DAYS WORTH OF WORK AT MINIMUM WAGE FOR A BRAND NEW AAA VIDEO GAME!!!!

Bloddy wankers like to think it's different on the other side of the pond, well.... IT BLODDY WELL ISN"T!

It's about double the pay, and double the price for everything. STFU already, same boat doods.

You should probably look up purchasing power parity.

I can't speak for the people earning min. wage. I've got a desk job with News corp here. I do ok. However, if you are on minimum wage, then you've probably got other priorities than spending a day's pay on a game. Just saying. Cost of living in this country is much, much higher than everywhere else that isn't Switzerland.

Just so you're aware, $15/hr in New York City will *almost* keep you off the street.

Minimum wage in Sydney is the exact same, bud.

 

[ResonanceSD]

On behalf of my colleagues in Australia:

"It's about bloody time, ya wankers!"

There, did I say that right?

Yep. Now drink this VB and shear a sheep. *checks you have done that* You are now an Australian citizen! Congratulations!

What's a VB? For that matter, what's a sheep? I live on the East Coast in a suburb, I know OF barnyard animals, but I've never actually been physically near one. Except maybe on some grade-school field trips.

This is a VB!
http://www.annandalecellars.com.au/SiteFiles/annandalecellarscomau/images/large_7854_VB%20Stubbies.jpg

That's a bottle of Jarate. Not to be consumed under any circumstances.

 

[Urh]

Australian salaries are much higher and the conversion rates, they are actually paying less than any place in the world. $1AU is not equal to $1US. Even their minimum wage is like $18AU/hr

Wages may be higher, but income tax and living expenses in Australia are also higher. Comparing wages without also comparing the cost of living is a meaningless exercise.

 

[RvLeshrac]

Australian salaries are much higher and the conversion rates, they are actually paying less than any place in the world. $1AU is not equal to $1US. Even their minimum wage is like $18AU/hr

"Minimum wage $18/hr" Haha You're funny.
And our dollar was stronger then the US (Im not sure how it is now) but when it was stronger if something was $60US on steam it should have been less than $60AU.

Always remember that publishers/developers are 100% in charge of the prices you see on Steam. Valve has, quite literally, *NOTHING* to do with the numbers on non-Valve titles.

 

[RvLeshrac]

On behalf of my colleagues in Australia:

"It's about bloody time, ya wankers!"

There, did I say that right?

Yup.

Australian salaries are much higher and the conversion rates, they are actually paying less than any place in the world. $1AU is not equal to $1US. Even their minimum wage is like $18AU/hr

But when a gov makes the minimal wage twice what 'others' pay out, then see products being sold for twice what 'others' pay for...

Er, uhm... Never mind. I've bitched the same song often enough.

EDIT: *smiles at the above post ; )

both of these

yes, everything might be expensive in australia, but so is it over here, gaming is no different from any other market. seriously, try surviving on 8$/hr while scrounging for solid hours at a job, it won't get you many video games after taxes and other bills kick in, i promise you that.

Thank you for saying that. I get so annoyed when they're like "YOU GET PAID MORE SO IT'S OK TAHT EVERYTHING IS MORE EXPENSIVE"

When you get paid less than double what I would if I had a minimal wage job, I would care. When products cost you more than double what they do here, I might care...

But you, and they, don't.

It's sad really. How can you explain feeling sorry for yourselves like this?

It's so annoying when people continue to ignore that.

Australia's minimum wage is $15.51 per hour, or ONE DAYS WORTH OF WORK AT MINIMUM WAGE FOR A BRAND NEW AAA VIDEO GAME!!!!

Bloddy wankers like to think it's different on the other side of the pond, well.... IT BLODDY WELL ISN"T!

It's about double the pay, and double the price for everything. STFU already, same boat doods.

You should probably look up purchasing power parity.

I can't speak for the people earning min. wage. I've got a desk job with News corp here. I do ok. However, if you are on minimum wage, then you've probably got other priorities than spending a day's pay on a game. Just saying. Cost of living in this country is much, much higher than everywhere else that isn't Switzerland.

Just so you're aware, $15/hr in New York City will *almost* keep you off the street.

Minimum wage in Sydney is the exact same, bud.

That was my point. That you don't have some unique-snowflake monopoly on high cost-of-living. The only - and I mean *ONLY* - reason games are more expensive in AU than they are in the US is that retailers have a huge captive audience they can take advantage of.

 

[Andy of Comix Inc]

Barring Australia, games are NOT expensive.

That actually sidesteps the issue at hand - a retail game, printed on a disc, shipped around in boxes made of plastic on trucks made of metal on roads made of asphalt, should not cost the SAME as a digital game, printed on thin air, shipped around in thin air in nothing made of nothing, on trucks made of ISPs on roads made of electricity.

We in Australia pay $110 for the physical goods? Whatever. You can justify it every which way until you're red in the face. I mean sure, I can import games from the UK for more than half that price with free shipping, but that's a product I can hold in my hand.

But we also pay the same price for digital goods, and you can't justify that quite as easily. This doesn't just exist in Australia, obviously; all over the world, usually, a AAA title will launch digitally at the same price as retail. Which makes you wonder - why? Where's the extra money going exactly, if not for the cost associated with shifting real world copies from store to store? If not the cost of printing a disc? Of mass-producing box insets? That's the issue at hand, that's what this inquiry is ACTUALLY asking, and that's what we should be concentrating on, as far as I'm concerned.

...though don't get me started on hours = dollars. I've never believed it to be true as long as you can watch a DVD movie over and over again, you can play a game over and over again, and what have you. You do not pay for an hour count. You pay for the assets that happen to make up an initial hour count. But that's a personal nitpick there.

 

[Arakasi]

I stopped buying games from local retailers ages ago.

Instead of getting ME3 for $110 from EB Games I can get it for like $66 (shipping included) from OzGameShop.

Not that I would get ME3.

 

[llubtoille]

Welcome to arse-backwards reasoning. We don't have a high prices because we have a high minimum wage - we have a mandated high minimum wage BECAUSE THINGS ARE SO GODDAMN EXPENSIVE. Of course, that high minimum wage is then used as a justification for the prices, but it's a complete cop-out. There is nothing inflated about the value of the Australian dollar - it's simply that in a recession (which we didn't actually have) resources remain valuable. And boy do we have resources.

troof,
aussie's a wealthy country, but only a fool pays more for stuff simply because they have more cash to burn,
apparently new york contains the highest proportion of mega-rich americans, yet I imagine they pay the standard american rate for their games.

the aussie minimum wage doesn't have an impact on the cost of making games, as the vast vast majority of games are made overseas at a (apparently) lower craptaular wage rate.

and lastly, New Zealand who has a minimum wage nearly half that of aussie ($13.50NZ = $10.40AU) also get stuck with super happy high prices on pretty much everything
(clothes, books, entertainment - excluding cinemas apparently tho)
I imagine this has to do with proximity and shipping however, cost $55 to get a WoW authenticator shipped over XD

still w'eva, if peeps are paying for them, then can't blame the sellers, personally I do my best to not buy any games on steam that appear to be locally priced.

 

[Azmael Silverlance]

Hopefully this will lead to some kind of ACTION!

 

[Fox_21]

The remark about the middle of Australia been empty is wrong as it has abundance of wild life and plant life and a place that sole purpose to kill people was uncalled for and also if you look at a map of Australia you might see that one of our most iconic landmarks lives in that big empty place a little thing called Airs Rock so yeah the remark about the middle of Australia uncalled for.
Fox (Citizen of Australia for my whole life)