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[Geekosystem] Australia Finally Investigating Its Absurdly High Software Prices - Page 2

post #11 of 83
Quote:
Originally Posted by Rubers View Post

No, it's called regulation and it's essential to the running of a free market. If all those companies are getting together and artificially keeping prices high that's called price fixing and it's anti-consumer. At the end of the day, the government (should) look out for consumers.

This thumb.gif

The reason the government is stepping in is because companies are essentially screwing consumers. They are forcefully taking advantage of our wallets and know that theres nothing we can do.

What really bugs me off is the pricing of digital goods. How the hell can it possibly cost almost twice the price for a publisher to release a game on Steam here, as it does in the US? Quite simply, it doesn't. In reality, the absolute most it should be is 10% higher due to GST (Goods and services tax). Thats it. There is no reason why a game costs $50 in the US and $90 here.

I saw MW3 on Steam the other day.......for $100.....yes, $100. And our dollar is above parity with the USD so a rough conversion would be $103-$105.......for MW3.

I'm glad the government is stepping in on this issue. With any luck we might see competitive pricing in this country and not the usual crap we hear about smaller market, shipping/freight costs etc. Especially when most of this stuff is available digitally, there is no shipping/freight costs associated with the product. Its just blatant price gouging
post #12 of 83
Quote:
Originally Posted by Rubers View Post

Quote:
Originally Posted by mott555 View Post

It's a scary day when governments start thinking they decide how much companies charge for their products. That is not how a free market works.

No, it's called regulation and it's essential to the running of a free market. If all those companies are getting together and artificially keeping prices high that's called price fixing and it's anti-consumer. At the end of the day, the government (should) look out for consumers.

They charge that much because people are willing to pay it. That's free market. If it was a problem, people would quit buying and companies would be forced to drop prices to make sales.

Government regulations rarely simplify or make anything better. For example, in the U.S. gas stations are highly regulated on fuel prices. As a result, gas stations can't legally make more than a few cents per gallon profit, meaning there is very little profit in selling fuel. Most got around it by also being convenience stores and trying to get people to come inside and pay $1.50 on a 32-oz pop that costs maybe 10 cents (no one complains about price gouging there!), but due to regulation several gas stations in my area actually quit selling fuel because of the hassle and only do groceries and such. One gas station actually had to totally shut down because they couldn't even survive on that.

Assuming the government has your best interest in mind is as big a mistake as assuming for-profit companies have your best interest in mind.
    
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post #13 of 83
Quote:
Originally Posted by mott555 View Post

They charge that much because people are willing to pay it. That's free market. If it was a problem, people would quit buying and companies would be forced to drop prices to make sales.

People in the USA are willing to pay the same prices as Australians... if you couldn't get a game for under 90 bucks, we would pay it as well. It's something beyond just "free market" at work here.
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post #14 of 83
Thread Starter 
Quote:
Originally Posted by Rubers View Post

Yeah, also, UK government? Get too this also.
$40 game in the US? £40 in the UK.
$40 exchanges to £25. So, why are we paying £15 more? I'm sure there's a couple more taxes and what not here, but for it to be so rounded to the point they're almost exactly the same numbers stinks of something wrong to me.
Also, Steam used to be epic. I bought a LOT of games before they started localising their prices and we all of a sudden lost out majorly. They also locked down gifting from US -> UK I think too. Sickeningly expensive.

This is not completely true. The most games I see there are priced at 50$ and 30£, about right.
But there is no doubt that there are pretty unfair prices on Steam, for me as European this is even worse, paying in Euros.
We usually get to pay the dollar price in Euro, thats 25% more than the US price.

The gifting part is probably not right, though. I regularly get games with the help of people from other countries, some games from Canada, some from the UK or some from Ukraine.
There are always workarounds to the unfair pricing and I think that Australians use them regularly so the state loses enough tax money to realize so they act now.
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post #15 of 83
Quote:
Originally Posted by mott555 View Post

They charge that much because people are willing to pay it. That's free market. If it was a problem, people would quit buying and companies would be forced to drop prices to make sales.
Government regulations rarely simplify or make anything better. For example, in the U.S. gas stations are highly regulated on fuel prices. As a result, gas stations can't legally make more than a few cents per gallon profit, meaning there is very little profit in selling fuel. Most got around it by also being convenience stores and trying to get people to come inside and pay $1.50 on a 32-oz pop that costs maybe 10 cents (no one complains about price gouging there!), but due to regulation several gas stations in my area actually quit selling fuel because of the hassle and only do groceries and such. One gas station actually had to totally shut down because they couldn't even survive on that.
Assuming the government has your best interest in mind is as big a mistake as assuming for-profit companies have your best interest in mind.

Not true,

If I recall correctly we have one of the highest piracy rates of any western country (higher than US, Canada, UK, NZ etc.)

You might also want to get your facts because just a few months back one of the biggest (if not the biggest) retailer in the country (Harvey Norman) shifted their games sales strategy from their brick and mortar stores to an online store front trying to win back competition from the import business. There are quite a few incredibly popular online stores that Aussie's import games from such as OZGamesShop because the prices are essentially exactly what you guys in the US pay. Hence Harvey Norman opened their "direct import" store front and are tackling the online e-tailers head on. I also believe another big name retailer is (or has) launching a similar scheme (JB Hifi).

So no, we aren't happy to pay for it. But when its an essential piece of software such as MS Office 2010 Pro for businesses, you can't afford not to buy it. This is another area where I think the government looking into things will help, it will help protect small businesses who can't really afford the ridiculous prices some of these software publishers are charging.
post #16 of 83
Stupidly high prices on both software and hardware.

Everything's made in China and we're the closest "Western" country. Yet we pay significantly more.

And yet major retailers are surprised when we (the customers) import our products from overseas.

A major investigation is long over due, but I support it none the less thumb.gif
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post #17 of 83
Quote:
Originally Posted by Vengeance47 View Post

So no, we aren't happy to pay for it. But when its an essential piece of software such as MS Office 2010 Pro for businesses, you can't afford not to buy it. This is another area where I think the government looking into things will help, it will help protect small businesses who can't really afford the ridiculous prices some of these software publishers are charging.

Business is a totally different world. Office Pro, even at those prices, is nothing for most businesses, and larger businesses with thousands of software licenses can usually get quite a discount from OEM dealers such as Dell or HP. I've seen small businesses pay tens of thousands of dollars for a software suite without complaining. And they do it because they need it and the boost in productivity is enough to offset the cost, meaning it makes them more profitable.
    
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post #18 of 83
Quote:
Originally Posted by mott555 View Post

They charge that much because people are willing to pay it. That's free market. If it was a problem, people would quit buying and companies would be forced to drop prices to make sales.
Government regulations rarely simplify or make anything better. For example, in the U.S. gas stations are highly regulated on fuel prices. As a result, gas stations can't legally make more than a few cents per gallon profit, meaning there is very little profit in selling fuel. Most got around it by also being convenience stores and trying to get people to come inside and pay $1.50 on a 32-oz pop that costs maybe 10 cents (no one complains about price gouging there!), but due to regulation several gas stations in my area actually quit selling fuel because of the hassle and only do groceries and such. One gas station actually had to totally shut down because they couldn't even survive on that.
Assuming the government has your best interest in mind is as big a mistake as assuming for-profit companies have your best interest in mind.

Already are. Many people quite simply refuse to pay that much when they can go online and get it that much cheaper.
post #19 of 83
Quote:
Originally Posted by Dousand Thollars View Post

Stupidly high prices on both software and hardware.
Everything's made in China and we're the closest "Western" country. Yet we pay significantly more.
And yet major retailers are surprised when we (the customers) import our products from overseas.
A major investigation is long over due, but I support it none the less thumb.gif

One of the few times I support government intervention. And that's saying something.
post #20 of 83
Quote:
Originally Posted by Rubers View Post

No, it's called regulation and it's essential to the running of a free market. If all those companies are getting together and artificially keeping prices high that's called price fixing and it's anti-consumer. At the end of the day, the government (should) look out for consumers.

By definition a free market has no government regulation. In a truly free market, in the case of price fixing, an enterprising third party would step in to provide the same product at a much lower price, undercutting all the other companies. A truly free market effectively self-regulates prices, although it presupposes that buyers are educated and will not buy something if its too expensive, which is not always the case.
Quote:
Originally Posted by Vengeance47 View Post

You might also want to get your facts because just a few months back one of the biggest (if not the biggest) retailer in the country (Harvey Norman) shifted their games sales strategy from their brick and mortar stores to an online store front trying to win back competition from the import business. There are quite a few incredibly popular online stores that Aussie's import games from such as OZGamesShop because the prices are essentially exactly what you guys in the US pay. Hence Harvey Norman opened their "direct import" store front and are tackling the online e-tailers head on. I also believe another big name retailer is (or has) launching a similar scheme (JB Hifi).

Sounds like self-regulation is already at work.
 
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