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 :

Poll

Did Microsoft pay too much ($2.5 billion) for Minecraft developer Mojang?:

Shout box

You're not permitted to post shouts.
Andrew EisenI still don't get the what #notyourshield is supposed to mean. Who is unfairly using who as a shield for what?09/18/2014 - 4:43pm
prh99Didn't said anything about #notyourshield or it's origins. Assuming your comment was directed at me.09/18/2014 - 4:28pm
prh99Leigh Alexander is right though, no one has to cater to them (trolls). I think a lot of them would likely continue playing even if scantily clad women were omitted or protagonist was female.09/18/2014 - 4:21pm
Michael ChandraSo no, normal gamers feeling attacked was not what sparked #notyourshield and only a fool would suggest otherwise.09/18/2014 - 4:21pm
Michael Chandra#NotYourShield was kickstarted by 4chan people, so don't go and make nonsense claims about that.09/18/2014 - 4:20pm
prh99those toxic individuals conduct their trolling under. It could have easily been under the Men Rights banner etc, they are just generally unpleasant and angry people who can't stand people disagreeing with them. 09/18/2014 - 4:00pm
prh99The whole gamer identity is the scapegoat some have latched onto in the wake of gamergate. I am sure it will fade, only to be replaced with the next thing, it always is. I am not so sure removal of identity will fix the problem, it's just the banner..09/18/2014 - 3:55pm
E. Zachary KnightAs for the whole "death of gamer" thing, I am personally patiently waiting for the day when being a person who plays games is as much of an identity as a person who reads books, watches tv/movie, listens to music. It will happen.09/18/2014 - 2:42pm
E. Zachary KnightThought I would share this io9 article as a bit of a rebuttal to the earlier Spider-man/Spider-woman comparison: http://io9.com/10-stupid-arguments-people-use-to-defend-comic-book-sex-163638182409/18/2014 - 2:41pm
Papa MidnightKyle Orland's response: http://arstechnica.com/gaming/2014/09/addressing-allegations-of-collusion-among-gaming-journalists/09/18/2014 - 12:41pm
Papa MidnightJames, I say this as a person who has managed a gaming press website before: This article is horrendous sensationalism: http://www.breitbart.com/Breitbart-London/2014/09/17/Exposed-the-secret-mailing-list-of-the-gaming-journalism-elite09/18/2014 - 12:41pm
Krono@james I never said you did. I was responding to Andrew's statement that he'd seen a mere two articles suggesting that the term gamer was tainted, by pointing him to a list of the articles that were more or less the orgin of the idea.09/18/2014 - 12:09pm
E. Zachary KnightBut james, you replied to my tweet when I tweeted about one of those articles. That is basically the same thing as writing an editorial on GP in support of it. ;)09/18/2014 - 12:04pm
james_fudgeNot only did we not write one, we didn't cover any of them either.09/18/2014 - 11:46am
KronoThe underlying suggestion most of the articles had that gamers supporting the issue were just the young men stereotype pissed off a lot of people, and sparked the #NotYourShield tag09/18/2014 - 9:41am
Krono@andrew Just two? The whole reason #GamerGate gained real traction was that 9 op-eds including arguments to that effect dropped in 24 hours: http://markdownshare.com/view/a524affd-e679-40be-8aa1-72058065dc2a09/18/2014 - 9:38am
MaskedPixelantehttp://www.gog.com/forum/general/double_fine_abandoned_spacebase_df9_development ITT: People who don't know what Early Access is.09/18/2014 - 9:32am
ZippyDSMleeFF2/4 remake now on steam.09/18/2014 - 9:13am
james_fudgeThis what they really think of us: http://www.donotlink.com/framed?54192709/18/2014 - 9:10am
ConsterAh yes, nothing quite says "I take offense to being associated with an awful few" like siding with said awful few.09/18/2014 - 9:07am
 

Be Heard - Contact Your Politician