Regional Pricing

[Clux]

[font="Trebuchet MS"]I understand the reason of why the game is being available for sale first on the Slitherine/Matrix store, however, its a bit unfair for those like me who really benefit from the regional pricing than steam provides, as an example, here is the prices differences between the steam price and the store price:

Now, dont get me wrong, I believe than the devs and publisher deserves every cent, but we are talking about a price difference of the 256%, which I'm willing to pay since I still have my part time student job, but I wont be able to play with my friends since they are going to wait until the steam release (which is a no brainier unless you really want to play ASAP), therefore, it would be nice if the store had an option for regional pricing.[/font]

[Malevolence]

The difference you see is a subsidy. It's money paid by Steam (for you) to keep the price low for your market. Steam recoups that money by charging a higher price to other markets. It has nothing to do with developers or publishers.

Also, this isn't the Fields of Glory forum. You may want to move this thread to the proper location.

[Clux]

ORIGINAL: Malevolence

The difference you see is a subsidy. It's money paid by Steam (for you) to keep the price low for your market. Steam recoups that money by charging a higher price to other markets. It has nothing to do with developers or publishers.

Also, this isn't the Fields of Glory forum. You may want to move this thread to the proper location.

I didnt know than steam paid them a subsidy, thanks!. Also, it was just a reference, since SE isnt available for pre-order and doesnt show its price.

[Malevolence]

ORIGINAL: Clux
I didnt know than steam paid them a subsidy, thanks!

Them? Your friends, yes. Their game purchases are subsidized.

Steam gives the subsidy to the purchasers (i.e. buyers) in that market. If a game buyer is in Mexico City, steam only asks for $MX 368. That is approximately $17 (USD).

If a buyer is in Chicago, Steam asks for $40 (USD) for the very same product.

The Mexico City buyer/gamer receives a subsidy of approximately $23 by only paying $17.

This is a common market strategy in a globalized economy.

[olin0111]

Are you sure that Steam is subsidizing games? As far as I know they suggest the regional price to publishers and then just take their cut. There is no money paid to the publisher for “lost” earnings and the publisher is free to disregard the suggested price.

[Malevolence]

I don't make or sell games on Steam or otherwise.

Based on anecdotes by people who do, everything must be done with an agreement with the seller--including selling in different currencies. I assume this done via their steamworks agreements.

[Simulacra53]

ORIGINAL: olin0111

Are you sure that Steam is subsidizing games? As far as I know they suggest the regional price to publishers and then just take their cut. There is no money paid to the publisher for “lost” earnings and the publisher is free to disregard the suggested price.

Pretty sure you are right.
Steam doesn’t subsidize anything.

This is a differential pricing strategy based on regional purchasing power.

Your main cost is development and publication.
On top of that you have to distribute your game.

Using Steam for distribution means sharing some of your profits, production itself is virtually free - you generate licenses, 10 or 10.000.000, the production itself actually does not cost anything more or less it is a numbers generator. The infrastructure to enable electronic distribution does.

So if your are willing to share your income with Steam you get a pretty big market reach, including those markets which would normally not be able to buy the products at your regional prices. Instead of selling just locally, you’ll be able to sell globally, at little or no extra cost you’ll potentially generate significant extra income - so what if it is less money per product?

I live in a premium area, I accept this situation.
Actually I would turn it around - it is not about others paying less, it is about us paying more as fitting our purchasing power (we’ll lets wait a couple of months to see where that is heading). Look at the pharmaceutical industry, they’ll corner markets to inflate prices, again based on purchasing power (and far beyond).

Sorry OT.

...eagerly awaiting the release!

[PainFireFist]

Developer who sells on Steam here.

There is no subsidizing on behalf of Steam. The developer sets the price, including regional pricing.

Edit: Just to make sure there is no misunderstanding. I am not associated with Matrixgames or Shadow Empire. Just a customer as everybody else here.

[dogancan]

I am also inclined to wait until the steam release in many of slitherine/matrix products since the gap between regionalized price of steam and matrix store prices is huge. though i am not happy with it knowing that steam actually gets a hefty share from my purchases.

[neuromancer]

I have to say thanks to the OP for pointing this out. I hadn't been aware of these differences, I'm a Canadian customer myself, and while I don't face quite the massive difference in price that a Mexican customer does (about 250%, yikes) there is still a significant difference in pricing for me, about 20% in this case.

I checked a couple other games, in this case a game sold here for $57.99 CAD (also the price of SE) is sold on Steam for $45.49 CAD. A difference of $12.50. Yeah... I'll wait, thanks.


Some of you thought it was a subsidy for non-American customers? Seriously? A subsidy is by definition government funded assistance. So you thought the governments of other nations were providing subsidies for games sold on Steam? Not bloody likely. I can imagine the fallout of that little item showing up in the budget...

Or maybe it was just the wrong word use, it did sound like you meant Steam was giving a discount. Still, not bloody likely. Valve - an American company - so loves non-Americans that they give discounts to us? Huge discounts in the case of Mexican customers. Yeah... right. Dream on. Or get over your persecution complex, one or the other (the most powerful nation on the planet, and a bunch of it's citizens think the rest of the world is picking on it? WTF?) Sales to encourage purchases are one thing, but permanent discounts, or government subsidies on computer games? HA! No chance.

It is more often the other way around, completely arbitrary price increases for non-American customers. We've seen that at where I work. Blatantly said straight out in one case "Oh, you're in Canada. The Price is X then, not Y." And yes, it was still in US Dollars. We were a little miffed about that. It was for software as well, or was it for a conference where we were going to them (which made even less sense)? One or the other.

Back to the primary point, it is odd though, considering Steam is taking a cut, you'd think it would be the other way around, cheaper here than on Steam. Or at least the same price, as pointed out, the increased visibility and distribution is likely well worth the cut Steam takes.

Well, whatever the case, I can wait. Don't know how long it will be, but I can wait.