Why The Hell Are Consoles So Expensive In The UK?

[famousringo]

michael_stutzer said:

famousringo said:

Back in 2008, the pound was worth $2 US dollars.

Just last year, it was lingering around at $1.5 USD.

That's 30%, right there. No need for a change in tariffs, taxes, or pricing strategy. It's as simple as currency exchange.

For game console hardware in particular, which all three manufacturers are regularly selling at a loss now, does anybody really think they'd just decide to use the loss-lead strategy everywhere except Europe? They charge those prices because that's what it costs them to sell a console in Europe.

Well, I was comparing them based on the prices in my country, in which the increases in the value of the dollars versus pound against the local currency is similar, if not in favor of pounds. I didn't know the exchange rate between the US dollar and the pound was so different compared to what I see. Though that seems strange and wrong to me but I am not really well-informed about monetary stuff. Thanks.

Though my approach seems to be wrong, my point still stands. Game prices are off as The Fury proves right below. The explanation for that doesn't matter because I was replying to the guy who were saying that game prices are much lower than the US.

You're quite right to point out that games aren't cheaper in Europe, I'm just trying to dispell the notion that the videogame industry is persecuting European customers somehow. Currency is just the start.

In addition to currency conversion (which tends to get padded a bit in case of fluctuation and can trail the currency markets by months and maybe longer) and taxation and tariffs, there are increased localization costs relative to the size of the market (markets plural, really), more stringent consumer protection laws to comply with, and I suspect higher retail costs due to higher wages and rent. That stuff all gets priced in.

Video games are hardly the only product that sees higher prices in Europe. You want the latest Galaxy Note 10.1? £450, about 50% higher than a straight exchange US price. iPod Touch starts at £160, 35% over US  $200 price.You want a new Golf GTI? MSRP starts at $25k USD or £26k GBP.

These companies don't see the word "sucker" whenever a European shows up. They simply deal with different regulatory frameworks, cost structures, customer expectations and market realities than they deal with in the United States.