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 EisenAh, okay.07/31/2015 - 2:46pm
benohawkI'm saying that the refrence in the article to the old title would need to be changed well the primary point of the article would be kept the same. Not something that should be an issue if the objective wasn't to be provocative.07/31/2015 - 2:41pm
Andrew EisenYou're saying the article should be altered to fit a different title. I want to know what title you find more appropriate for the copy as is.07/31/2015 - 2:34pm
benohawkIt would take a minor rewrite to the article, but I'd call it 'What is a Gamer' but go for the same point. you don't have to sell to jerks07/31/2015 - 2:33pm
Andrew EisenI still say "clickbait" is thrown around way too casually, to the point where it's completely meaningless. That aside, what alternate title would you suggest?07/31/2015 - 2:22pm
benohawkt was still delibrate clickait, something I would expect from a Gawker outlet, the article would of likely been much better recieved with a nicer title07/31/2015 - 2:18pm
Andrew EisenProvocative title to be sure but I didn't find it inaccurate or not reflective of its text.07/31/2015 - 2:12pm
benohawkGamasutra shouldn't of gotten clicks for the article until they had published under an accurate name instead of some pathetic clickbaiting07/31/2015 - 2:09pm
benohawkThe title of the article meant that the article was worth ignoring, not launching a massive campaign to try and end the site it was on.07/31/2015 - 2:08pm
Andrew EisenI will Ouija him my unceasing indignation!07/31/2015 - 1:59pm
Infophile@AE: The fact that he's dead does a good job of ensuring he won't hear it.07/31/2015 - 1:59pm
InfophileGood to hear. Just wish everyone offended felt that way07/31/2015 - 1:58pm
Andrew EisenRoger Ebert will never hear the end of my disdain for his I Spit On Your Grave review! http://www.rogerebert.com/reviews/i-spit-on-your-grave-198007/31/2015 - 1:57pm
Big PermI don't support the email campaigns. I wouldn't support a comics venue getting them because of being offended, so it'd be hipocritical for me to do it to those who offend me07/31/2015 - 1:53pm
Infophile(cont'd) if it could be proven, it wouldn't merit anywhere near what Alexander has gone through.)07/31/2015 - 1:49pm
InfophileYeah, we can't prove or disprove it. My beef is with those who use the assumed intent to justify the actions taken against Gamasutra and Alexander. If it can't be proven, it shouldn't be retaliated against like that. (Hell, with how mild this was, even...07/31/2015 - 1:49pm
Andrew EisenNo problem. We just prefer to keep the front page clean.07/31/2015 - 1:43pm
Big PermAndrew- Alright, didn't know before.07/31/2015 - 1:42pm
Andrew EisenBig Perm - Not that big a deal, but do try to refrain from the heavier expletives in the Shout box.07/31/2015 - 1:40pm
Big Perm@ Info. I disagree, but we're just both speculating on intent. Is it possible you're right? Sure, but I don't see you being able convince me by saying she would have offended differently07/31/2015 - 1:40pm
 

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