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[Geekosystem] Australia Finally Investigating Its Absurdly High Software Prices - Page 8

post #71 of 83
I'm going to laugh at the people who are calling for increased regulation.

these monetary distortions are in part due to artificially LOW interest rates(also closed off borders).

There's more of an incentive to price competitively and steal market share from competitors when interest rates are higher This is particularly true with software.
Though the above does somewhat depend on consumer preferences(solution: buy other things)

The goal of regulation should be to increase transparency and to decrease market friction. Most changes people propose do not do that.
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post #72 of 83
Quote:
Originally Posted by xlink View Post

I'm going to laugh at the people who are calling for increased regulation.
these monetary distortions are in part due to artificially LOW interest rates(also closed off borders).
There's more of an incentive to price competitively and steal market share from competitors when interest rates are higher This is particularly true with software.
Though the above does somewhat depend on consumer preferences(solution: buy other things)
The goal of regulation should be to increase transparency and to decrease market friction. Most changes people propose do not do that.

I dunno. Are there any two countries in the world with free'er trade then canada and the USA? Things still cost more north of the border. Lack of regulation doesn't seem to be helping here.

I always figured it was just price gouging by american corporations that don't really care about a small canadian market and a canadian govt that doesn't care that it's citizens are getting ripped off.
post #73 of 83
psh. I'm sure there's a causal link as to why items cost more; things like different markets and economics comes to mind.
post #74 of 83
Quote:
Originally Posted by xlink View Post

I'm going to laugh at the people who are calling for increased regulation.
these monetary distortions are in part due to artificially LOW interest rates(also closed off borders).
There's more of an incentive to price competitively and steal market share from competitors when interest rates are higher This is particularly true with software.
Though the above does somewhat depend on consumer preferences(solution: buy other things)
The goal of regulation should be to increase transparency and to decrease market friction. Most changes people propose do not do that.

Seeing as the official interest rate in the US is 0.25% (afaik) and only last Tuesday the reserve bank of Australia dropped official cash rates to 3.75%, your argument doesn't doesn't stand up.

On your logic we should be paying less because there should be incentive for competitors to have a price war.......well guess what, they aren't. There is a reason why retail is shrinking every quarter, because people can't afford to go out and spend money at the moment. You would think this would spark retail to drop prices, nope. They're only going higher.

I love how we get Americans commenting on this like its no big deal. Yet, if you guys had to pay $90 for a game on Steam or $25 for a CD there would be riots in the streets and someone would probably try and get a class action lawsuit to sue the publisher for price gouging. However, if it happens in any other nation its fine because "you're a smaller market". That my friend, is a cop out.

I also loved that thread the other day where the Xbox subscription is going up to $99USD or something and everyone was crying about it......guess what......we've been paying that (or close to that) ever since the console released. You guys in the US actually have no idea how lucky you are when it comes to pricing. Heck, just look at the price of petrol in the US. In the US you essentially pay around $1 per litre (give or take a few cents either way). Here in Australia for the same octane rated petrol, we pay between $1.40 - $1.55 per litre. It gets even worse in Europe, everywhere I've been in Europe (12 countries) is over $2 per litre. Yet we hear Americans complain about petrol prices. Seriously guys, you are the lucky ones, stop complaining!

The reality is, especially in regards to DIGITAL media, there is absolutely no valid reason why any country should pay more than the any other. You can go on about tax and economies etc. but its all a load of crap. Its a global market, the distribution method is essentially free when compared to the costs of freight, paying the middle men, buying warehouses to store stock etc. so prices should reflect that. Saying Australia is a small market is also a cop out because we have one of the highest adoption rates of technology in the world.
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post #75 of 83
Quote:
Originally Posted by SpankyMcFlych View Post

I dunno. Are there any two countries in the world with free'er trade then canada and the USA? Things still cost more north of the border. Lack of regulation doesn't seem to be helping here.
I always figured it was just price gouging by american corporations that don't really care about a small canadian market and a canadian govt that doesn't care that it's citizens are getting ripped off.

In this case a system should be instituted which allows for cost effective importing and exporting. problem solved, prices will normalize.

You'd be hard pressed to find an economist who doesn't support free trade. Protectionism could be argued, BUT in such a case there's no new industry to protect.

similar arguments apply to online purchases. Heck it might even improve GDP as it'd prevent capital outflows.
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post #76 of 83
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.

The UK is the land of taxation. Has been for as long as history goes back. Sorry :/

I doubt that is the real reason though. Prices are are higher or lower because that is what people will pay for them. Or perhaps more accurately, that is what companies think people will pay for them.
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post #77 of 83
The Australian government won't do a damn thing. It will be just like interest rate cuts the banks never pass on or the high cost of fuel. Government leaders will go on television talking about inquiry's and how it's unacceptable. After that nothing will change....oh wait, they will invent some new tax for us.
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post #78 of 83
Our government is practically useless. Its 2012, my town has gravel in the main street.

Nothing ever changes, everything is always more expensive. Just cause it is.
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post #79 of 83
Quote:
Originally Posted by Kleingetier View Post

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.

It's not exactly encouraged, though.

And they wonder why people don't buy - well lets face it, things are getting too expensive. A friend of mine bought GW2 for £50, and it's a digital copy. I really couldn't believe that he was happy to spend such a sum of money on a digital copy of a game. He could justify it if it was a hard copy (At least he'd have something tangible/physical to show for his expense) but nope.

His girlfriend was not happy, and i don't blame her.

And they wonder why piracy is so rampant.

Actually, no, lemme rephrase that; they know why piracy is so rampant, but they encourage it and use it as an excuse to promote bills and laws that further infringe on peoples rights so they can turn a bigger profit. But thats another story.
Quote:
Originally Posted by Mootsfox View Post

The UK is the land of taxation. Has been for as long as history goes back. Sorry :/

That it is.
Edited by Thingamajig - 5/4/12 at 8:27pm
post #80 of 83
Quote:
Originally Posted by robbo2 View Post

The Australian government won't do a damn thing. It will be just like interest rate cuts the banks never pass on or the high cost of fuel. Government leaders will go on television talking about inquiry's and how it's unacceptable. After that nothing will change....oh wait, they will invent some new tax for us.

The Government can't really do much without putting in price ceilings, so they will eventually distance themselves from the problem and tell people to "walk down the street to get a better deal". Then it will be back to talking about a 2013 budget surplus and endless one-liners from Tony Abbott starting with "this is a government...".
Edited by randomizer - 5/4/12 at 10:08pm
    
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