PC game code stripping is widespread says report

By Ironman273
in PC Gaming

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Grand Master

compl3x

Posted
Posted

The problem isn't the people "capitalizing" on this. The problem is with the game publishers doing this in the first place...

 

The publishers are trying to artificially price their products higher in more affluent markets in an attempt to "price discriminate". If they want to eliminate this they should price their products the same in all markets... A person in the US shouldn't pay more "because they can".

 

 

This does seem like a "what the market will bear" issue. Charge higher rates in certain regions because of no other reason than you think that is what people will pay there.

 

Aussies know all about paying higher prices (the "Australia Tax") for software that is significantly cheaper internationally. Even when our dollar was almost at parity with the USD we were paying more.

 

This leads to two things: piracy, which is the worst outcome, and sourcing serials/keys outside of your region.

Grand Master

spenser.d

Posted
Posted

The problem isn't the people "capitalizing" on this. The problem is with the game publishers doing this in the first place...

The publishers are trying to artificially price their products higher in more affluent markets in an attempt to "price discriminate". If they want to eliminate this they should price their products the same in all markets... A person in the US shouldn't pay more "because they can".

:laugh: Price discrimination? They're pricing to what each market can bear. Its pretty much the picture perfect definition of capitalism and its also how you turn a bigger profit. If people stopped buying games at a particular price point in the US or UK, you can bet they'd drop it but people aren't stopping, so why would (or, quite frankly, should) they?

Grand Master

PGHammer

Posted
Posted

The problem isn't the people "capitalizing" on this. The problem is with the game publishers doing this in the first place...

 

The publishers are trying to artificially price their products higher in more affluent markets in an attempt to "price discriminate". If they want to eliminate this they should price their products the same in all markets... A person in the US shouldn't pay more "because they can".

LogicalApex - read my post above.  More often than not, the choice isn't up TO the publisher (or the manufacturer in the case of hardware region-locking).  Gray markets and black markets don't benefit the publishers OR the manufacturers - period; if anything, they are headaches for both. as much as publishers AND manufacturers would LOVE to be able to have a single price everywhere (or even a single manufacturing standard for HARDWARE everywhere), that isn't happening, and mostly WON'T happen either - because it's not in the "national interest" of the largest nations FOR it to happen.  (For example, why does Australia need a separate games-rating agency from the Germans or the EU?  Why does GERMANY need a separate games-rating agency from the EU for that matter?)

Grand Master

+LogicalApex MVC

Posted
  • MVC
Posted

:laugh: Price discrimination? They're pricing to what each market can bear. Its pretty much the picture perfect definition of capitalism and its also how you turn a bigger profit. If people stopped buying games at a particular price point in the US or UK, you can bet they'd drop it but people aren't stopping, so why would (or, quite frankly, should) they?

 

Yes, this is Price Discrimination...

 

Game companies don't operate in a purely competitive market so they don't act in a competitive manner. In a competitive market, where the goods have perfect substitutes, the manufacturer has a harder time trying to extract higher amounts of money out of its customers as doing so would leave room for a competitor to capture the customer with lower prices.

 

 

LogicalApex - read my post above.  More often than not, the choice isn't up TO the publisher (or the manufacturer in the case of hardware region-locking).  Gray markets and black markets don't benefit the publishers OR the manufacturers - period; if anything, they are headaches for both. as much as publishers AND manufacturers would LOVE to be able to have a single price everywhere (or even a single manufacturing standard for HARDWARE everywhere), that isn't happening, and mostly WON'T happen either - because it's not in the "national interest" of the largest nations FOR it to happen.  (For example, why does Australia need a separate games-rating agency from the Germans or the EU?  Why does GERMANY need a separate games-rating agency from the EU for that matter?)

 

The cost of doing business in multiple regions is very minimal on these products. They don't amount to costs as high as 50% or more per unit in various markets. The cost of acquiring a rating logo is a fixed cost not a variable one...

 

Take a look at smart phones... A perfect example here because they need to be approved in almost every country they are sold in individually based on frequency bands. Take a look at a device like the iPhone where Apple has managed to slap all required logos on the device and sell a single SKU worldwide (the same is true for the majority of smartphone manufacturers by the way). The cost is a fixed one and can be uniformly spread in a one price for all markets model. This isn't done solely because if you can do price discrimination you'll extract more profit than if you don't...

 

Consumers shouldn't feel any sort of negativity if they work around companies attempts to price discriminate...

Veteran

Vandalsquad

Posted
Posted

lol buying photoshop in Australia vs the usa comes to mind here :p

 

Yes this bull**** right here. That's its cheaper to FLY half way across the world to another 1st world country and pick up a copy and fly back is completely nuts. These companies get no sympathy off me because of the price guaging they do on Australians. Reap what you sow if your going to so blatantly price fix us.

 

There's a reason 90% of the content I consume is pirated. 

Grand Master

spenser.d

Posted
Posted

Yes, this is Price Discrimination...

Game companies don't operate in a purely competitive market so they don't act in a competitive manner. In a competitive market, where the goods have perfect substitutes, the manufacturer has a harder time trying to extract higher amounts of money out of its customers as doing so would leave room for a competitor to capture the customer with lower prices.

So what. If consumers are going to pay it, then let them. If I don't think a game will be worth $60, I wait until its on sale or don't buy it at all. If enough people do that, they drop the price on their games pretty quickly. Call it what you want, its just good business.

Grand Master

chrisj1968

Posted
Posted

Discs are practically free to manufacture. Cutting them out won't result in massive savings in games. I don't see any discount on Destiny on the PS4 online store nor do I see any for The Last of Us. Actually, the few games I picked up for my gifted PS4 were all cheaper getting them new in store on an actual disk...

 

The Last of Us: Remastered was $20 cheaper in store at Best Buy. MLB The Show was also a fair bit cheaper, but I don't remember how much cheaper.

I was more thinking along the lines of stripping the game or software keys. if they were digitally delivered to say amazon where I buy, the key is safe. there is no CD/DVD key to steal off of a box software.

Grand Master

+LogicalApex MVC

Posted
  • MVC
Posted

I was more thinking along the lines of stripping the game or software keys. if they were digitally delivered to say amazon where I buy, the key is safe. there is no CD/DVD key to steal off of a box software.

The article isn't saying the games are being stolen. The games are being purchased and paid for in Asia. After the purchase them they then strip the codes out and sell them...

 

So, this would be equal to buying a lot of codes from Amazon in HK and then reselling them in the US. You didn't steal the codes from Amazon, but the game industry is upset that you "stole" their extra money they wanted to charge the person in the West.

Grand Master

chrisj1968

Posted
Posted

The article isn't saying the games are being stolen. The games are being purchased and paid for in Asia. After the purchase them they then strip the codes out and sell them...

 

So, this would be equal to buying a lot of codes from Amazon in HK and then reselling them in the US. You didn't steal the codes from Amazon, but the game industry is upset that you "stole" their extra money they wanted to charge the person in the West.

 

that's what I was saying. the amazon model prevents anyone from stripping a code away. I do see some advantages of digital download software.

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