Ka-pi96 said:
True, there are different exchange rates everywhere, but Europe for example has VAT added on so more tax to pay as well. As for deals, I remember one in August/September 2013 for 3 extra months of of PS+ with a yearly subscription. |
European VAT isnt added in digital purchases. At least not in country of origin neccesarily. Of course taxes has to be paid but only to the country of origin of the service. Switzerland and luxemburg are popular place to position your internet bussines as the VAT is low compared to much of remaining europe.. Most services with a physical counterpart (ex. Movie purchases, game purchases) keep prices the same regardless of no distribution cost, lower tax and no cut for 3rd party retailer, simply because they can. The profit margin is much higher digital than physical. Add to that less logistical ressources needed, limited costs in terms of bussiness building rent and interior design/decoration costs. It becomes clear that a digital storefront is the way to go in a world where consumers increasingly squeezes every penny but at the same time demands ease and quick purchase. It is not a coincidence both steam and amazon has been so successfull. Cheap products without having to leave your home is the best way to sell you crap.
