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 EisenHey, remember Kung Fury? That short film that was funded via Kickstarter a few years ago? You can watch it now. I suggest you do. It's fun! https://www.youtube.com/watch?v=bS5P_LAqiVg05/28/2015 - 5:14pm
Goth_SkunkOriginally, yes. Some content was cut out in order to reduce its ratign from AO down to M, but PC users could work around that an unlock the full content by means of a patch. Which is what I did. :D05/28/2015 - 3:56pm
Andrew EisenKarp - Yes, for strong sexual content. Although the recent remaster contains all that content and was rated M.05/28/2015 - 3:54pm
Andrew EisenDepends on if you consider Hatred misrated. I haven't played the game or seen the ESRB's rating summary so I'm undecided.05/28/2015 - 3:53pm
WonderkarpDidnt Fahrenheit have an AO?05/28/2015 - 3:52pm
Matthew Wilson@AE that is why I said it seems more moral panic to me.05/28/2015 - 3:51pm
Andrew EisenMatthew - From what I've seen (just the trailers) the game is nowhere near as gory as many, many other games. But again, I'm guessing the AO rating comes from theme and tone rather than outright gore.05/28/2015 - 3:50pm
Andrew EisenKarp - It didn't show penetration or nudity.05/28/2015 - 3:50pm
WonderkarpI'd say Mortal Kombat X has more Gore and Violence than Hatred.05/28/2015 - 3:50pm
Matthew Wilsonwhat I mean by worse in this case its not more gory/violent than others.05/28/2015 - 3:48pm
WonderkarpI forget....did Hot Coffee actually show Penetration?05/28/2015 - 3:48pm
Andrew EisenKarp - The Skyrim mods are external mods. The Hot Coffee mod unlocked content on the disc. Big difference. Still, the content that was unlocked was still perfectly in line with an M rating in my opinion.05/28/2015 - 3:47pm
Andrew EisenThemes are factored into ratings, not just mechanics. Still waiting for ESRB's rating summary. Very curious to see what it has to say.05/28/2015 - 3:46pm
Matthew WilsonHatred is a top down shooter though, and isnt any worse than other top down shooters?05/28/2015 - 3:45pm
Wonderkarpyeah, San Andreases rerating was ridiculous. Why not rerate Skyrim with all its crazy sex mods out there? But yeah, ESRB is good as policing itself. 05/28/2015 - 3:45pm
Andrew EisenManhunt 2 and Hatred though? Eh, there's an argument to be made for the higher rating.05/28/2015 - 3:43pm
Andrew EisenRerating San Andreas was a mistake though. That seemed to be the result of kowtowing to public pressure.05/28/2015 - 3:42pm
Andrew EisenThere wasn't one. It's just a dumb rating.05/28/2015 - 3:42pm
WonderkarpI dont see Moral Panic with a racing game though05/28/2015 - 3:40pm
Matthew Wilson@AE when they tend to misrate games its normally because of moral panic surrounding it.05/28/2015 - 3:38pm
 

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