It’s a common observation among European gamers: video game prices often seem higher in Euros (€) than their equivalent Dollar ($) price tags in the United States. When a new game is announced at $70 in the US, European customers frequently see a price point of €80 or more. This discrepancy raises questions beyond simple currency conversion and VAT, leading many to wonder if European gamers are getting a raw deal.
One might initially assume that Value Added Tax (VAT) accounts for this difference. VAT is indeed included in the listed price in the EU, unlike in the US where sales tax is added at checkout. However, the VAT explanation often falls short when considering the magnitude of the price gap. The difference isn’t always neatly explained by the average EU VAT rate.
Furthermore, simply looking at the exchange rate doesn’t provide a complete picture. While currency conversion is a factor, a direct conversion of $70 to Euro at the current exchange rate would likely be less than €80. This suggests other factors are at play. Is it merely a case of companies leveraging regional pricing strategies, or are there deeper economic realities influencing these prices?
The issue becomes even more pronounced when considering purchasing power. While nominal wages in some European countries might be comparable to or even higher than in the US, the actual purchasing power – what you can buy with your money – can differ. A €60 game in Europe might feel significantly more expensive than a $60 game in the US when considering average disposable income and cost of living.
For gamers in European countries where the Euro’s value is perceived to be lower relative to richer EU nations, this pricing strategy is particularly frustrating. They are essentially paying a premium, not just due to currency conversion, but possibly due to a blanket regional pricing approach that doesn’t fully account for economic variations within Europe itself.
The question remains: is the higher Euro price a result of calculated market segmentation, a genuine mistake in pricing strategy, or an oversimplification of complex economic factors by game publishers? Whatever the reason, the €80 price tag for a $70 game highlights a persistent point of contention for European gamers and sparks ongoing discussions about fair pricing in the digital age.
