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.

 
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ZippyDSMleeI dunno I'd go to see it, seems liek dumb fun, better than half assed serious stuff that has so many holes large enough to drive mac trucks through(coughinterstellercouch).07/30/2015 - 10:58am
Andrew EisenGoth - Wait, you went to see Pixels just to spite Chipman?07/30/2015 - 10:49am
MechaCrashYou can see Pixels, which requires you to be a moron to enjoy it, or you can actually spend that time and money watching something actually good. Gosh, what a choice.07/30/2015 - 10:49am
benohawkHot damn, I'm sold. Why see something you can enjoy on multiple levels when you can nap through half the film and still get it all?07/30/2015 - 10:17am
james_fudgeSo what people are saying is PIXELS is a great movie to see if your are comatose.07/30/2015 - 9:47am
ZippyDSMleePixels is something to shut your brain off with and just try and enjoy. The rest of films not so much. LOL07/30/2015 - 8:49am
MechaTama31Child of Light looks interesting, but not "I'm willing to put Uplay on my PC" interesting.07/30/2015 - 7:51am
MattsworknameOn the subject of movies and video games, if you haven't seen it and your a street fighter fan, run down a copy fo Street fighter assassins fist. Its the best video game movie made, and its by a small studio07/30/2015 - 5:37am
Goth_SkunkSee, i didn't enjoy the Transformers films, but I don't really know why. I watched them for the sake of watching them, but I doubt I'd ever have a craving to watch them again. With Pixels, I would.07/30/2015 - 5:12am
Sora-ChanOn topics of movies in general: I usually find the argument of "shut down your brain and enjoy the movie" argument to be annoying. It was something that I was told to do when it came to the transformer movies from Bay, and it irked me when people said it.07/30/2015 - 5:03am
Goth_SkunkI did. And I didn't care much for it, but it was the reason I went and saw the film. The entire thing can be summed up in one sentence: "I didn't like it! If you pay to watch this movie, you're a big smelly poopy-head!"07/30/2015 - 4:56am
MattsworknameI think everyone here has Crono, we just don't agree with him or how he handles himself or his reviews, but thats us07/30/2015 - 4:55am
CronosonicThere are far worse problems Moviebob pointed out about Pixels than it not being 'serious'. Did you even /watch/ his review?07/30/2015 - 4:35am
MattsworknameAlso, newbusters verison. http://newsbusters.org/blogs/nb/tom-blumer/2015/07/29/venezuela-orders-food-producers-divert-output-empty-state-stores07/30/2015 - 4:25am
MattsworknameNot game related, but wow, Were are all those people who sand the praises of venezula now http://hosted.ap.org/dynamic/stories/L/LT_VENEZUELA_FOOD_SHORTAGES?SITE=AP&SECTION=HOME&TEMPLATE=DEFAULT07/30/2015 - 4:25am
Goth_Skunk... is one you can acknowledge, then you'll enjoy it.If you CAN'T acknowledge such a mindset, then you must be MovieBob. Welcome to GP. :^)07/30/2015 - 4:13am
Goth_SkunkIf you watch Pixels expecting it to be Film Of The Year, or if you expect a Best Actor performance from Adam Sandler, then yes, you will be disappointed. If the idea that a film can simply be fun and entertaining without needing to be serious...07/30/2015 - 4:12am
MattsworknameIm kinda torn goth, on one hand , the effects look cool, but im not sold on sandler as the star07/30/2015 - 3:54am
Goth_SkunkBut did the film specfically take elements of Space Invaders and dedicate scenes and acts to it? No, they didn't.07/30/2015 - 3:49am
Goth_SkunkThe whole film is kinda centered around a Space Invaders theory.07/30/2015 - 3:49am
 

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