In the UK things are always always more expensive. (PS4 costs $518 here)

We're used to this but I really do not know why DIGITAL games costs so much.
Most games that are brand new on launch you'll be able to get for £40-£45 on Amazon ($59-$66) but On the PS Store they cost anywhere from £50-£55 ( and sometimes even £60! ($89).. $90 for a game..

Now, usually the common response is things cost more because of shipping, which isn't really the case because.. well digital, and also that would spike up Amazon prices which it doesn't.

Another reason is that Sony aren't allowed or don't want to alienate retail by undercutting them, yet in the American PS Store games cost.... $60! The exact same, we don't get that, we get sometimes a %50 increase in prices on the digital copy.

So is it that UK retailers are especially sensative to being price matched or? 

I'm sure there's a reasonable explanation for this I'm just trying to understand why.. I mean there's taxes but Steam manages to get past that in the UK..

There is a huge competition between UK retailers which keeps the retail prices low:
http://www.idealo.co.uk/compare/4446129/bloodborne-ps4.html

No competition in the PS store allows higher prices for digital sales.

Publishers taking the piss. No game should ever be more than 49.99 quid and realistically no digital should be more then 39.99

Sony tend to be quite fair if I'm not mistaken, ignoring PS4 titles at launch.

#exchangeratesaretheworst

UK prices include VAT. US keeps it's tax separate.

Still a lot.

Is 60 pound sterling the MSRP in the United Kingdom?  I ask because in the United States $60 is MSRP, but at stores within weeks not bizarre to see games at $40-50 on sale.

That's why I never buy any games digital unless they are seriously discounted (-50% at least). Some retail places like GAME and xtra vision sell games in the shop for £60 quid though so fuck them too. No suprise they both went into administation.

There's always the option to create several accounts (different regions) on a single console. Games aren't region locked on PS3 + PS4 (but movies are), so you can switch to your US-account, buy a game, switch back to your European account and play the game.

We really need to stop using the exchange rate to compare prices. It doesn't make sense.

Exchange rate only compares the value against another currency and in no way shows the true value of your currency within your country.

For instance in 2007, £300 = $600, 2008 £300 = $420

PS4 is 680 dollars here in Israel.
New games are 80 dollars.