EU Commission Says Piracy Increases Legitimate Game Sales

[DonFerrari]

Nautilus said:

Aeolus451 said:

Countries have different tax rates and companies don't decrease the base price whatsoever to offset the high taxes/fees of some countries compared to others. Why would they decrease their prices for the reasons that you're talking about if they won't even do it for taxes? It's because it affects their profits if they sell below a certain price point at a certain period of time.  

Poor countries are poor. They don't have money to dick around with these kind of luxuries and companies know it. If a person in those countries can afford a luxury, they'll pay the regular price for it. If they can't then oh well. It's that simple.

 

Thats why I said that companies only do it(lowering price in the hopes of making profit off of sheer numbers sold) if there is the potential.If the estimates they do check out and so on.If there is no evidence suggesting that such practice will pay off, and they are better off leaving the original price at it is, they will do it.Its a matter of analysing the market and deciding based off of that.

And you need to remember that there are poor countries and there are poorer countries.Just because you are poor doesnt mean you cant afford a bit of luxury.Plus there are countries that are not that poor but simply prefer to spend their money elsewhere, other than gaming.(Like China with console gaming).If you manage to create a strategy to make the buying customs of said country to change, you are bound to rake in big loads of cash, and sometimes thats worth the risk(with one such strategy being lowering the price of games in general).

Its all a matter of perspective.And you really need to get off that idea of your that poor countries have only enough money for essential things and a few extras on the side.Poor countries are obviously poorer than richer countries, but they are not nearly as poor as you think.

What you are saying goes very well on the long tail strategy.

Yes rich countries may make 80% of the revenue (let's say nowadays it's 100%) if you use your marketing intelligence to see the right price and way to distribute your product in a way that you can untap a portion of the market in that poor country that may have enough money and willingness to buy your product.