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[PA Comic] Friday, November 7, 2014 - Economaniacal

DogDog Registered User, Administrator, Vanilla Staff admin
edited November 2014 in The Penny Arcade Hub

image[PA Comic] Friday, November 7, 2014 - Economaniacal

Economaniacal

Economaniacal

http://penny-arcade.com/comic/2014/11/07

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  • YellowhammerYellowhammer Registered User regular
    Because....inflation? I don't really know.

  • XiroXiro Registered User new member
    I'd assume it's so that physical sales still remain equally valid, but also because gaming companies are greedy fucks.

  • Eat it You Nasty Pig.Eat it You Nasty Pig. tell homeland security 'we are the bomb'Registered User regular
    well, the reason digital product specifically is more expensive is that retail product is also more expensive; digital product only has to under-price its retail counterpart by a small amount to have a market advantage

    the reason retail is more expensive seems to be a combination of distribution costs and a smaller overall market

    hold your head high soldier, it ain't over yet
    that's why we call it the struggle, you're supposed to sweat
  • RfsrusselRfsrussel Registered User new member
    As an Australian, the only explanation I ever received was that if the prices on Steam were lower, retailers such as EBgames and JB-HI-FI would take a massive hit in terms of their revenue. The retailers that I encounter (at least in my case) don't try to advertise their Steam gift cards.

  • SomeWarlockSomeWarlock Registered User regular
    Also, IIRC, it's not really Steam's/Valve's choice/decision. It's the publishers who decide the prices on steam. And why would a publisher ever undercut themselves willingly?

  • PAX_SkeletorPAX_Skeletor Melbourne, AustraliaRegistered User regular
    Ah good old Australia tax, how I hate thee. Heck, why am I complaining, I never buy anything full price on Steam anyways. Steam sales FTW.

  • RedthirstRedthirst Registered User regular
    edited November 2014
    To be honest, I don't see why retail even exists for now. I guess the only reason why people buy retail copies of games that I heard is that people want to feel like they "own the game, so they can place it on their physical shelf". But if you buy a retail version of Steam game, you pay for that little paper with CD-key on it, and the DVD with the game is just a piece of plastic.

    Redthirst on
    steam_sig.png
  • Zoku GojiraZoku Gojira Monster IslandRegistered User regular
    edited November 2014
    At last, the truth can be told...
    1zqzg1u.jpg

    Zoku Gojira on
    "Because things are the way they are, things will not stay the way they are." - Bertolt Brecht
  • sus4nsus4n Registered User regular
    Feel free to check out the inquiry into IT pricing from last year - http://goo.gl/rB86Rm
    The consolidated pdf version gives a pretty rundown of this issue - which extends beyond game pricing.

    Might be worth putting this quote out there:

    "3.78 The Committee notes no representatives from the gaming industry chose
    to address this issue. "

    :(

    Unfortunately it doesn't feel like much has been done about it - except that when the Coalition won the federal election they stalled the rollout of the National Broadband Network - making physical goods more attractive to ppl who dont have access to decent internet.

  • DegraineDegraine Pinsomniac Victoria, AustraliaRegistered User regular
    I take it Jerry and Mike got an earful about Steam game prices again while they were down here.

    Xiro is correct. Retailers charge what the market will bear, and we're so used to games being considerably more expensive compared to other countries that we grin (although it's more like a rictus in this modern age) and bear it. Same thing with software suites, it's all bullshit.

  • AnzekayAnzekay Registered User, Moderator mod
    The cost of shipping physical copies here is actually no-where near the sort of markup we have on games. There's quite a bit more at play, though it's been a while since I read up on it. Lots of stuff like brick and mortar stores being more expensive to run here, the cost of marketing is far less efficient due to our lower and more spread out population, and that each individual store services considerably less people than a store in, say, the US or the UK. There's a few other factors at play as well, though I can't remember their exact details.

  • SkyEyeSkyEye Registered User regular
    It's like shipping something to the moon.

    Steam: Autumn_Thunder - SC2: AutumnThundr.563 (NA) - Hearthstone: AutumnThundr.1383

  • Rhesus PositiveRhesus Positive GNU Terry Pratchett Registered User regular
    SkyEye wrote: »
    It's like shipping something to the moon.

    You know, as opposed to Moon, PA.

    [Muffled sounds of gorilla violence]
  • orthancstoneorthancstone TexasRegistered User regular
    Hey, shipping those bits in underwater "tubes" ain't cheap, man.

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  • Dirk2112Dirk2112 Registered User regular
    A former coworker of mine is an Australian citizen. He had a job offering in Melbourne and off he went. We had a little gathering wishing him well and saying it was nice to know him and he said, "You know, I could always come back right?" No he can't. Soldiers going to Afghanistan come back. Cosmonauts who go to the ISS come back. Buzz Aldrin went to the moon and came back. People go to Australia to be eaten by giant snakes and shit.

    I assumed digital games cost more in Australia because Koala bears love the taste of fiber optic cable.

    NNID = Zepp914
  • PrimesghostPrimesghost Registered User regular
    Redthirst wrote: »
    To be honest, I don't see why retail even exists for now. I guess the only reason why people buy retail copies of games that I heard is that people want to feel like they "own the game, so they can place it on their physical shelf". But if you buy a retail version of Steam game, you pay for that little paper with CD-key on it, and the DVD with the game is just a piece of plastic.

    You know there are still large parts of the US that don't have access to high speed Internet, right? I imagine retail still exists because there are people that would like to be able to play their games in areas of the world without an Internet connection at all.

  • SpinelesSSpinelesS Registered User regular
    http://en.wikipedia.org/wiki/Australia_Tax

    "The cost of Adobe Systems Creative Suite Master 6 Collection in Australia was much higher than that of the United States equivalent, retailing at $4,334 in comparison to $2599 in the United States. It was calculated at the time that it was cheaper to fly to the United States, puchase a copy of the Creative Suite Master 6 Collection and fly back to Australia"

  • StockBreakStockBreak Registered User regular
    What are the options for Aussies who want to get around the ridiculous prices there? Could they use a proxy server to trick Steam into thinking they're in the US?

  • DonnictonDonnicton Registered User regular
    I love that the time index of the video implies that that's what Gabe opened up the interview with.

    Like, the interviewer sits down with him to start the video, hits record and the immediate first thing out of his mouth is "I fuckin' hate Australia, man. Fuck those guys."

  • RedthirstRedthirst Registered User regular
    StockBreak wrote: »
    What are the options for Aussies who want to get around the ridiculous prices there? Could they use a proxy server to trick Steam into thinking they're in the US?

    I doubt it. Since I'm from Ukraine, the situation here is reversed - we have some games cheaper than rest of the world. But if someone goes here or uses a proxy to buy game here, he won't be able to play it in other regions.

    steam_sig.png
  • meatlessmeatless Registered User new member
    It does actually cost more to ship stuff through "the tubes" in Australia: http://blog.cloudflare.com/the-relative-cost-of-bandwidth-around-the-world/

    Summation: it costs 10-20x as much to push bits in Australia as it does in EU and NA.

    Money quote: "To give you some sense of how out-of-whack Australia is, at CloudFlare we pay about as much every month for bandwidth to serve all of Europe as we do to for Australia. That’s in spite of the fact that approximately 33x the number of people live in Europe (750 million) versus Australia (22 million)."

  • BremenBremen Registered User regular
    well, the reason digital product specifically is more expensive is that retail product is also more expensive; digital product only has to under-price its retail counterpart by a small amount to have a market advantage

    the reason retail is more expensive seems to be a combination of distribution costs and a smaller overall market

    Well, it's more the case that physical retailers often refuse to stock products if they're cheaper digitally (for obvious reasons), and game publishers don't want to shoot themselves in the foot by getting cut out of half the market. Lots of indie games (which often aren't available at physical stores) are similarly priced in Australia and the US.

  • AstralMuffinAstralMuffin Registered User regular
    How cute.... try to buy a game here in Argentina where the dollar is like 11 pesos plus 20% of the price if you buy it with a credit card or 13 pesos if you magically get your hands on an actual bill. Or, if you try to buy a game directly from a store in pesos instead of dollars (assuming you find what you want because there's not much variety) you can say goodbye to what you get payed in a week -.-

    Yo ho, yo ho...

  • fortyforty Registered User regular
    SkyEye wrote: »
    It's like shipping something to the moon.
    Yeah, that is really weird emphasis.

  • bhospbhosp Registered User new member
    Degraine wrote: »
    I take it Jerry and Mike got an earful about Steam game prices again while they were down here.

    Xiro is correct. Retailers charge what the market will bear, and we're so used to games being considerably more expensive compared to other countries that we grin (although it's more like a rictus in this modern age) and bear it. Same thing with software suites, it's all bullshit.

    As always the answer to the question "Why does that cost so much?" is "Because people are willing to pay that much for it."

  • TackerTacker Newcastle, AustraliaRegistered User new member
    One of the more infuriating examples of this I found was during the release of one of the Batman games. I think it was Arkham City. I'd logged onto Steam, checked out the price: AUD$59.95. That seemed unreasonable and insane for a popular pre-release. I wouldn't have the money for another week, so I figured "Yeah. I'll snap that up as soon as I can." Log back in a week later, the price had bumped up to AUD$79.95. When I contacted Steam about the price difference, I was informed that the original price hadn't been adjusted for the Australian market. It would have been anti-competitive.

    Bulldust and dog's business.

  • BigB007BigB007 Registered User new member
    I usually don't comment on webcomics, but I felt this one deserves a comment. First of all, I live in Belgium. Belgium isn't exactly a cheap place to live. During my crusade against Nintendo about the new Pokemon games getting released a week later here in Europe than the rest of the world despite Nintendo proving they're capable of releasing the game worldwide on the same day, I discovered that not only do we get the games later than most other countries, we also pay more than most countries (yes, even more than Australia). I don't think the price for physical copies has anything to do with shipping either. Most likely the PAL region games and the NTSC region games are made in the exact same factory somewhere in Japan or China or something. Import taxes probably make a difference, but I can't believe it's that big of a difference.

  • DegraineDegraine Pinsomniac Victoria, AustraliaRegistered User regular
    StockBreak wrote: »
    What are the options for Aussies who want to get around the ridiculous prices there? Could they use a proxy server to trick Steam into thinking they're in the US?

    I wouldn't make a habit of this, but while I was over there for a trip, a friend of mine bought a game and gifted it to me because Steam would not take my credit card while I was in the region.
    meatless wrote: »
    It does actually cost more to ship stuff through "the tubes" in Australia: http://blog.cloudflare.com/the-relative-cost-of-bandwidth-around-the-world/

    Reading that page, I saw Telstra mentioned and goddamn it, of course it's their fault. Fucking Telstra. I cannot think of a good thing anyone has said about that company.

  • MorninglordMorninglord I'm tired of being Batman, so today I'll be Owl.Registered User regular
    Also our current government are a bunch of luddite greedy money pinching fuckwits who decided that fibre to the node is just fine and dandy and we don't really need fibre to the home.

    So they aren't doing it anymore, even though it will cost more in the long run. Because it'll be cheaper right now.

    When it comes to technology this country can barely work out where the switch is.

    (PSN: Morninglord) (Steam: Morninglord) (WiiU: Morninglord22) I like to record and toss up a lot of random gaming videos here.
  • Major MalfunctionMajor Malfunction Registered User new member
    I worked in the wholesale game import industry here in Australia. We'd buy units for $5, mark it up to $50, retailers mark it up to $90. Everyone goes laughing to the bank. Game prices are just a rip-off.

  • SmellyTerrorSmellyTerror Registered User regular
    The parliamentary enquiry found there's no good reason for even the physical copy prices. 10% markup, maybe, but the usual 50%? No. No reason other than we can afford it. Case closed.

    (Important to note, though, that minimum wage in Australia is about double what it is in the US, so we can afford it. It's been really short-sighted of those vested interests in the US to keep the wages so low - sure, you need to pay your own staff more money, but now most of your customers have twice as much to spend! The cost of labour in most products is actually pretty damn small. If you can't sell more burgers to people with twice as much money, even if the burger costs 15 cents more, then you're an idiot).

    Dark Iron: Mongoose, Gnome Warlock
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  • WeisskaiserWeisskaiser TokyoRegistered User regular
    edited November 2014
    Meanwhile in Japan...
    Screenshot_1.jpg?resize=640%2C228

    (And that's when they make stuff available at all and don't just block us from accessing the pages and ban us for using Steam keys bought from other sites)

    Weisskaiser on
  • JermsJerms Registered User regular
    Adobe prices were the worst. The Photoshop creative suite a couple of years back would have cost me $3000 from the Adobe web site. More than double what it cost on the same website for an American. I actually asked them why and they said "localisation and support". But yeah, there's no localisation in those applications, and no local support.

  • BursarBursar Hee Noooo! PDX areaRegistered User regular
    Hey, those zeds don't magically turn themselves into esses.

    GNU Terry Pratchett
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  • RodjirRodjir Registered User regular
    Sales tax?

  • AmotionAmotion Registered User new member
    "It does actually cost more to ship stuff through "the tubes" in Australia: http://blog.cloudflare.com/the-relative-cost-of-bandwidth-around-the-world/"

    Steam traffic is not paid for by the game publisher, the local CDNs do that. They are not paying Telstra to peer their data out.

  • xraydogxraydog Registered User regular
    Out of curiosity is GOG.com the same?

  • WiseHackerWiseHacker Registered User new member
    edited November 2014
    I don't know if the creators frequent these threads but I I'd like to let Tycho he was not given the complete information.

    While it is true that wages are high in Australia so to is the cost of living.

    The reason why game prices are so high here is because there are no barriers to make publishers reduce their prices. They are high not because of data transmission costs but because they can charge as much as they like with little to no consequence.

    And to make matters worse, when some games finally arrive here not only is the price higher but often some content is even removed from the game and some editions of games do not arrive here.

    WiseHacker on
  • WiseHackerWiseHacker Registered User new member
    edited November 2014
    Rodjir wrote: »
    Sales tax?

    The closest we have in Australia to a sales tax is the Goods and Services Tax (GST). It is set to 10% of the product and is applied before it even goes on the shelf. For example, if I see a game for $100 AUD, $10 is tax. The rest is for the unit itself.
    I worked in the wholesale game import industry here in Australia. We'd buy units for $5, mark it up to $50, retailers mark it up to $90. Everyone goes laughing to the bank. Game prices are just a rip-off.

    The real joke is the same distributors and retailers are the ones that scream poor the loudest and have event demanded that measures be put in place to deter people from buying online.

    WiseHacker on
  • ruzkinruzkin Registered User regular
    Tacker wrote: »
    One of the more infuriating examples of this I found was during the release of one of the Batman games. I think it was Arkham City. I'd logged onto Steam, checked out the price: AUD$59.95. That seemed unreasonable and insane for a popular pre-release. I wouldn't have the money for another week, so I figured "Yeah. I'll snap that up as soon as I can." Log back in a week later, the price had bumped up to AUD$79.95. When I contacted Steam about the price difference, I was informed that the original price hadn't been adjusted for the Australian market. It would have been anti-competitive.

    Bulldust and dog's business.

    That's bloody cheap for a pre-release. Prices in Aus have dropped markedly over the past few years - launch titles for the 360 were hitting $120 at EB.

    g4OlSIF.jpg
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