Friday, December 19th 2008
Valve Inflicts European Gamers with $1 = €1 Equation
At the time of preparing this report, US $1.42 makes a Euro. Here's what Valve seems to be pricing its games and those of its affiliates on the Steam platform as: $1 = €1, ignoring exchange rates, meaning that if a product costs say $20 on Steam, you will be charged €20 (approximately $27.86), if you are buying from the EU. Several game titles have been priced in this fashion. Call of Duty 4, priced at US $49.99 ($59.4 after applicable taxes) is tagged at €49,99 ($70 before applicable taxes).
In reaction to this, disgruntled European gamers have started protesting this move by Valve on online forums, an example of which can be found on Valve's own Steam Users' Forums. Also found on the same board is a user group named 1€ ≠ 1$. Certain groups have even started reporting this to the European Commission Consumer Cell. The gamers allege that they have been given a largely unfair pricing scheme with products on the Steam platform, that violates trade laws. The Steam platform serves gamers from around the world with a common platform to purchase games, and coordinates multiplayer gaming and updates. An unhappy consumer base from one of the largest markets in the world could certainly impact on its revenues.
Source:
Tweakers.net
In reaction to this, disgruntled European gamers have started protesting this move by Valve on online forums, an example of which can be found on Valve's own Steam Users' Forums. Also found on the same board is a user group named 1€ ≠ 1$. Certain groups have even started reporting this to the European Commission Consumer Cell. The gamers allege that they have been given a largely unfair pricing scheme with products on the Steam platform, that violates trade laws. The Steam platform serves gamers from around the world with a common platform to purchase games, and coordinates multiplayer gaming and updates. An unhappy consumer base from one of the largest markets in the world could certainly impact on its revenues.
196 Comments on Valve Inflicts European Gamers with $1 = €1 Equation
If by chance its the EU governments or the U.S. I wouldn't suggest you stop supporting Valve. These guys have always had the best interest of the gamer in mind. Without them I think we would have an entire industry run in EA or Blizzard style. Think about that nightmare before we judge.
Even if it's a "completely digital content distribution system," they still have to deal with European banks and regulatory agencies to get European gamers' credit card payments accepted, and doing these things incur taxes and fees.
Like I said, though, they could be a bit more delicate about doing it, rather than treating all currency as if it was equal (which it's not).
Do you even know how VAT works?!
Of course, in Europe there are taxes aplenty! It is the land of taxes! Taxes, taxes and taxes! It is a land of strange people and strange taxes and greedy governments who overtax everything and everyone, ooo beware!! Oh poor poor american corporation, it had to pay the evil evil European taxes all by itself, wah wah.
So what's your excuse for Steam games costing more than retail? :rolleyes:
Second of all be careful how you approach your points and opinions. You can and WILL be ripped apart by some pretty intellectual people here. After all this isn't a Pokemon forum.
The discussion is about why a product costs more in the EU than it does in the US, and the decision about why is leaning towards the increased costs of doing business in the EU.
Now, there's no need to be inflammatory -- no one's asking for pity for Steam/Valve. They knew the costs of doing business in the EU, and they still chose to do so -- I really don't think they'd have chosen anything else; the EU is a huge market, and one that a business can't really ignore, even if the costs/fines are greater there (just look at Microsoft!).
Steam has always been a total ripoff for uk gamers.
Second, I don't care how "intellectual" they might be, as long as they don't have proof to what they're saying then it's nothing more than assumptions and opinions, not fact.
Third, ad hominem already? Please, if you're going to call me an idiot at least be man enough and do it directly instead of dropping hints about me being some 13yo immature newbie who just registed and likes Pokemon and can't form a coherent post/chain of thought.
So by your logic Amazon (US) also pays taxes to sell to European customers. Nevermind the fact that they operate and are based off the US. Because the EU forces American corporations on American soil to pay taxes if they want to sell to some random chap in the EU. Right? And Steam is based off an American server.
I know its in style to bash the "rich" or large cooperations but your government no matter what country is the biggest corporation/thief you could ever imagine. This is why I tend to defend the privet sector.Well man you now have 11 posts. I could care less when you registered. Your new to contributing to the forums. This is fact. Sorry.
Second you are also making assumptions. We ALL ARE. I don't work for Valve and you don't ether. You see the price go up so you assume greed on Valves part. You don't question why. You ASSUMED.
Third I did no such thing. I was giving you a fair warning that your tone is heading towards flame land and you wont like it there. You will be crushed and this is a great forum. It sucks when someone gets banned......unless its candle.
Amazon sells in Europe and doesn't face tariff because it has a branch in Europe. Steam doesn't.
Game + Digital distribution + taxes >= Game + Documentation and box + Overseas distribution + Taxes + Intermediaries + Retail stores profit + VAT.
And that's exactly what happens here. They have become greedy, greedy, greedy. And they'll pay the price that costs trying such a thing.
Before you start flaming me I know they don't use paypal, it was merely a convenient example. Whatever their currency solution is it could very well suffer from the same problem that I find with paypal. Mind you, I just don't know. Then again I should think none of you do either.
COD4, when it came out on steam was $70. 1to1 rate = 70 Euro, I HIGHLY doubt that's even close to European RRP.
As for the UK, COD 4 on the PC was £30 when it came out, 70 Euro would put that at £50, I've never seen a PC game for £50 that wasn't a special collector's edition.
What's different now, and is this implemented for the UK customers or just ones that use the Euro?
Open the eyes, they just want as much of the pie as they can. They just thought "Ey they pay 50 euros for retail copies there."
"Let's forget about the fact that those 50 euros pay the retailers, the small distributors and intermediaries and the expenses of making and printing the documentation and boxes for all those countries. Let's get the money."
As far as Valve goes, who knows whats going on, maybe its greed, maybe its higher cost of doing business, who knows, but Valve should release a public statement detailing their pricing model, if they really cared about their customers, thats what should happen, but it won't.