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

Posted in

 
Forgot your password?
Username :
Password :

Shout box

You're not permitted to post shouts.
MattsworknameAndrew: If the new ghostbusters bombs, I cant help but feel it'll be cause it removed the origonal cast and changed the formula to much08/01/2015 - 8:31pm
Andrew EisenNot the best look but that appears to be a PKE meter hanging from McCarthy's belt.08/01/2015 - 7:34pm
Matthew Wilsonwhy, let me guess it runes like crap?08/01/2015 - 7:29pm
Andrew EisenInteresting. These throwers are different than the ones we saw in the earlier Ghostbusters prop pics. https://twitter.com/feigfans/status/62754147689817702508/01/2015 - 7:28pm
PHX Corphttp://www.neogaf.com/forum/showthread.php?t=1088640 NeoGAF: Warning: Don't buy Binding of Isaac Rebirth on 3DS08/01/2015 - 7:26pm
MattsworknameYou know what game is a lot of fun? rocket league. It' s a soccer game thats actually fun to play cause your A Freaking CAR!08/01/2015 - 7:02pm
MattsworknameNomad colossus did a little video about it, showing the world and what can be explored in it's current form. It's worth a look, and he uses text for commentary as not to break the immerison08/01/2015 - 5:49pm
MattsworknameI feel some more mobility would have made it more interesting and I feel that a larger more diverse landscape with better graphiscs would help, but as a concept, it interests me08/01/2015 - 5:48pm
Andrew EisenHuh. I guess I'll have to check out a Let's Play to get a sense of the game.08/01/2015 - 5:47pm
MattsworknameIt did, I found the idea of exploring a world at it's end, exploring the abandoned city of a disappeared alien race and the planets various knooks and crannies intriqued me.08/01/2015 - 5:46pm
Andrew EisenDid it appeal to you? If so, what did you find appealing?08/01/2015 - 5:43pm
MattsworknameIts an interesting concept, but it's not gonna appeal to everyone thats for sure,08/01/2015 - 5:40pm
Andrew EisenThat sounds horrifically boring. Doesn't sound like an interesting use of its time dilation premise either. 08/01/2015 - 5:36pm
Mattsworknamean observer , seeing this sorta frozen world and being able to explore without any restriction other then time. no enimes, no threats, just the chance to explore08/01/2015 - 5:34pm
MattsworknameAndrew: I meant lifeless planet, Time frame is an exploration game. Your dropped onto a world which is gonna be hit by a metor in 10 seconds, but due to time dilation ,you actually have ten minutes, so you can explore the world, in it's last moments, as08/01/2015 - 5:32pm
Andrew EisenLP is 20, TF is 8 and has an old build available as a demo.08/01/2015 - 5:32pm
MattsworknameLast I checked zip, Lifeless planet was 10 bucks on steam I think08/01/2015 - 5:29pm
Andrew EisenMatt - Which one? Time Frame? How exactly does that play? What exactly do you DO in that one?08/01/2015 - 5:29pm
Andrew EisenZip - Neither game is above $20.08/01/2015 - 5:28pm
Mattsworknamefinished it, great game all the same.08/01/2015 - 5:22pm
 

Be Heard - Contact Your Politician