Australia’s Productivity Commission Tackles Video Game Prices

August 8, 2011 -

Australia's Productivity Commission, an independent advisory board that focuses on the "economic, social and environmental issues affecting the welfare of Australians," is now setting its sights on video game prices in the country. A new report entitled "Economic Structure and Performance of the Australian Retail Industry" details the sticker shock Australians face when it comes to buying video games. The report details the practice by publishers of artificially increasing the price of games. The Productivity Commission roundly condemns this practice in its report.

The Commission says that it is aware of the "longstanding practice" by international suppliers to set different regional prices. This effectively treats consumers in one region as willing to pay higher prices than those in other countries. Australian consumers are quite aware of this practice because they often see that consumers in other regions are paying significantly less than they are.

Some international suppliers have attempted to defend the practice by saying that it is "due to the cost of supplying a remote and relatively small market like Australia" which has its own unique requirements. These arguments are especially ridiculous in the case of digital downloads such as music, software and videos, where the costs of delivery to the customer are negligible and uniform to what everyone else in the world is paying.

You can read the full report here and an in-depth analysis of it at Kotaku Australia.


Comments

Re: Australia’s Productivity Commission Tackles Video Game ...

It's also due to the fact that the exchange rate is a very poor indicator of the worth of a currency. Its exchange rate worth is not its purchasing power (i.e. real) worth. To get the real worth of a currency we really have to look at what you can buy for that currency (excluding other currencies), but for various reasons a good estimate is given by PPP (purchasing power parity) adjustment.

There's a massive difference between Australia's nominal GDP (which is subject to aberrations of exchange rate) and Australia's PPP-adjusted GDP. In 2010, Australia's nominal GDP per capita was around $56,000 (US), while its PPP-adjusted GDP per capita was only around $40,000.

What this basically means is that in 2010, one Australian dollar was in real terms only worth around 70% of what the exchange rate with the USA made it look like it was worth. As the AUD continues to climb against the USD thanks to Australia's strong economy, the gulf between nominal (exchange rate) value and real (purchasing power) value only grows.

 
Forgot your password?
Username :
Password :

Shout box

You're not permitted to post shouts.
Matthew Wilsonthe thing is in japan holidays do not drive sales, and x/y came out everywhere on October 12th last year. This is Nintendo thinking japan is more important than the rest of the world, and that has not been true since the early 2000s.09/14/2014 - 5:49pm
InfophileA glitch in SSB 3DS is causing players to get banned for using Peach: http://www.polygon.com/2014/9/14/6147417/report-glitch-serves-up-one-day-bans-for-smash-bros-players-who-pick09/14/2014 - 4:28pm
Jessy Hart@ZippyDSMlee Hopefully!09/14/2014 - 11:32am
Neeneko@Infophile - as someone who dealt with release schedules, holidays and other releases are just the begining ^_^09/14/2014 - 11:23am
ZippyDSMleeJessy Hart:I am sure they will be back as DLC...09/14/2014 - 10:31am
Jessy HartI miss the Ice Climbers :(09/14/2014 - 9:55am
InfophileSimultaneous worldwide releases aren't as simple as they seem. Different places have different holidays, plus different other releases to contend with. So a little bit of staggering makes business sense09/14/2014 - 3:25am
MaskedPixelantehttp://www.joystiq.com/2014/09/13/excavated-et-cartridges-will-be-sold-distributed-to-museums/ Alamogordo is going to be selling off a bunch of the games from the Atari Graveyard.09/13/2014 - 9:02pm
Matthew Wilsonnintendo should have done a world wide release for smash. The game is all over twitch.09/13/2014 - 12:47pm
ZenYeah, I got a set of codes yesterday and have been enjoying the heck out of it. Limited characters...but it is a demo lol. Glad there is no play limit though which...well...FINALLY. Now, any ideas why it tracks the coins?09/13/2014 - 10:48am
Andrew EisenThe verbiage was "select Platinum members" so yeah, if it's not a random sampling, the other requirements are hidden. Still, everyone gets the demo next week.09/13/2014 - 10:39am
MaskedPixelanteThere appears to be some other factors determining whether or not you get codes. Some people I talked to said they didn't get codes despite meeting all the announced conditions.09/13/2014 - 9:36am
quiknkoldI got Smash Bros Codes!09/13/2014 - 6:42am
InfophileBasically, anyone who got Platinum level on Club Nintendo last year and has e-mails enabled got four codes yesterday (including me) for early demo downloads. Don't know why Nintendo is doing it this way. Maybe they plan more Club perks like this?09/13/2014 - 4:20am
Matthew Wilson@wym I am just hoping they do not screw up their netcode, but given their history I am not holding my breath.09/13/2014 - 12:05am
Andrew EisenThe Smash 4 demo should be available to all 3DS owners on Sept. 19.09/12/2014 - 8:48pm
WymorenceLucky. I've been drooling at that game hoping they can get it to work for a portable since buying my 3DS09/12/2014 - 8:36pm
MaskedPixelanteMan, the way they animate Mega Man in Smash 4 is so accurate to his sprite it's scary.09/12/2014 - 7:28pm
MaskedPixelante3DS version.09/12/2014 - 3:23pm
Wymorence3DS version or WiiU version?09/12/2014 - 3:22pm
 

Be Heard - Contact Your Politician