SamuelRSmith said:
Yay for editing your post later.
Look, I'm tired and bitchy, and this post probably won't make much sense, but I'll go ahead and post it anyway:
Fluctuations in the exchange rate do not effect the minimum wage. The only things that change are levels of imports/exports. You seem to be of the illusion that strength of currency has an effect on inflation, that's not necessarily the case. The value of the pound has been consistantly falling since last summer, under your world, that would mean that inflation has increased - but it hasn't, infact, since last september, inflation has dropped from around 5% to 3% on the CPI and has dropped as low as 1% on the RPI.
This has of course happened because of the huge drop in demand for domestic goods in the UK, however, it shows that inflation and the exchange rate are not tied together.
With that being said, look again at the UK. Games have stayed at the same price in the UK, RRP £40-£50, with discounts coming throughout later months. So the price of games hasn't changed in the UK for its citizens. However, because the value of the pound has fallen, Europeans are now able to import games from the UK for far cheaper prices than what they could have done before.
Has the price changed in the UK? No, it's still £40-£50 at launch, do games look cheaper to people converting the currency? Yes, they do.
What I said remains perfectly true. Sure, the examples I gave are highly unlikely to happen, and come with their own problems, but fluctuations in exchange rate has a huge effect on perceived value from people converting the currency.
The best way to determine the cost of a good or service is to look at the opportunity cost of the said good.
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