Analyst: Game Prices in Australia Lower by End of 2011

August 17, 2011 -

Australian video game prices will drop by the end of the year, according to Rob Blythe, consumer analyst for Macquarie Bank. According to Blythe, the Australian dollar moving towards parity with the US dollar is the major catalyst for the Australian growth in online shopping. But, he claims, when it comes to the video game market online sales in Australia are lower than in the US and UK. According to the Macquarie report published in July (and data from various sources including Forrester, UK ONS, US Census Bureau, and Screen Digest), the toy and video game category make up roughly 3.7 percent in Australia, compared to 24 percent in the UK, and 19 percent in the US.

While Blythe notes that Australians want to shop at overseas retailers online due to better prices, he also points out that there are several factors that come into play which stop many from doing so.

"Firstly, a lot of console games are region-locked, so if Aussie gamers buy a game from Play Asia they end up with the Asian or US version and therefore can't play online with their Aussie friends," Blythe said. "Secondly, maybe around 50 percent of sales of a big, AAA game are in the first week. Core gamers don't like to wait; they want to be part of the whole experience of lining up for the title on the day of its release at a brick and mortar store and then going home to play it."

The good news is that Blythe thinks pricing won't be an issue for much longer in Australia. He posits that game prices in Australia are slowly becoming aligned with other territories, as publishers begin to take into account that that exchange rates between different territories will always fluctuate.

"Australia has been slow to adapt to international pricing for games, yes, but I think in the second half of this year or at the very least by early 2012 we will start to see game prices in Australia coming down. From my estimates, I predict they'll drop from around A$120 to somewhere around A$70."

"That said, Australian pricing will still be at a premium to offshore, due to things like distribution and shipping costs, but the gap won’t be as significant. Economists are predicting that our currency will normalise and eventually come back down below parity with the US dollar and when that happens, the attractiveness of buying video games overseas will be eliminated for Aussie consumers."

Source: GameSpot

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Andrew EisenNot much change to the uniforms so I was surprised to see such a redesign for the proton pack. I like it though!06/30/2015 - 10:22am
Andrew EisenGhostbuster proton pack: https://twitter.com/paulfeig/status/61586646983075840006/30/2015 - 10:19am
Andrew EisenGhostbuster uniforms: https://twitter.com/paulfeig/status/61565492324668211206/30/2015 - 10:18am
Mattsworknamegamergate or any part of that movment. My biggest issues have always been more about my views on the idustry on a personal level rather then any affilication with GG.06/30/2015 - 9:50am
MattsworknameI only really every had any interest in the GG stuff when they were going in about the media and stuff and the whole "Gamers are Dead" junk. As a general rule, whatever issues I had with various groups was more my own issues, not anything specific with06/30/2015 - 9:49am
Andrew EisenI'm still trying to figure out where anyone is getting the idea violent content or lousy representation of women and minorities in video games shouldn't exist or be promoted.06/30/2015 - 9:25am
james_fudgeWell, members of GP first, members of GG second, I always say.06/30/2015 - 9:06am
black mantaConsidering it's only you and Mattsworkname that have been carrying the banner for it here, that pretty much testifies to how little influence they have. Most everyone else here couldn't care less.06/30/2015 - 8:54am
black mantaAgain GG is more like Occupy Wall Street than the Tea Party movement. They had their moment, but they fizzled out. And now exist more as a nebulous thing spouting ideas. They haven't achieved anything meaningful.06/30/2015 - 8:52am
black mantaAs sincere as your beliefs may be, the movement is still rife with bigots and misogynists.06/30/2015 - 8:51am
black mantaI'm sure you're heart's in the right place, Goth. But it doesn't excuse the behavior of GG's members towards the people they don't like.06/30/2015 - 8:50am
MattsworknameWow goth, write a novel why dont cha. Seriously I know you have a passion for this stuff, but wow, thats kinda overkill.06/30/2015 - 8:46am
james_fudgeI hereby dub this space the Mainifesto Box (tm)06/30/2015 - 8:34am
Infophile13 shouts in total by Goth in a row. I think I'm to blame here. If I'd read the Breitbart link when he'd posted it, maybe he wouldn't have felt the need to say everything here.06/30/2015 - 8:27am
E. Zachary KnightI go away for one night and Goth writes his Gamergate manifesto in the shoutbox.06/30/2015 - 8:15am
james_fudgeI blame Andrew for this.06/30/2015 - 8:10am
Goth_SkunkAnd at long last, I think I'm finally done.06/30/2015 - 3:08am
Goth_SkunkAnd if those progressive games fail to make any headway in the market, don't blame gamer culture for not being cultured enough to appreciate the product. Own up to the fact that the game either sucks, is not interesting, or both.06/30/2015 - 3:06am
Goth_Skunknor suggest that the games industry and culture is rife with toxicity because of it and needs to change for the good of the medium. There is room in the market for progressive games to co-exist with games like Hatred, not replace them outright.06/30/2015 - 3:04am
Goth_SkunkAnd if the overly violent content of most AAA games or the perceived mistreatment of women in such games bothers one, by all means criticize it, but do not under any circumstances suggest that it such content shouldn't exist or be promoted,06/30/2015 - 3:02am
 

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