NJ5 said:
Partly because of taxes, I'm sure. The other part is... because European gamers are willing to pay more, I guess. If we weren't, they would have to drop prices.
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The biggest VAT in an European country is 25%, not over 40%. Before they introduced the euro and pound on Steam, to the price was added a VAT that differed from country to country. Without the VAT the prices were basically the same, with some small exceptions. Now we Europeans would have to pay over 40% more on the majority of games available on Steam. Personally I only buy games that are at discount(under 10euro) or priced fairly(within 20% of the USA price) in Europe.