Currency markets and the costs of games/hardware
Saturday, October 27th, 2007 - 9:02pm
I'm not sure what shows up on the news nightly in the states, but here in Canada a lot of it is about our raging dollar. Also the U.S. dollar isn't doing so well. How much do you think the value of U.S. currency affects the price points of games and hardware? For every point the U.S. dollar falls it means less money in retailers pockets and less Yen going over seas. I'm sure Sony would be in less of a rush to lower the price since they will already be getting a smaller cut.
Our price paid for games should now be on par with the US but it isn't and I don't believe it will be until people demand it. Right now, most publishers are getting an extra $10 on each game sold and everyone here is so used to it that they don't pay it any mind. I think it will take some time before the media and the public start to realize how we're getting ripped and I think it will eventually change and prices will come in line. I personally don't see the U.S. dollar going back to where it was any time soon.
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Funny that you mention that it'll be a while before the media cottons on to this issue. The Toronto Star has been almost tediously covering the discrepancy in costs between items bought in the US and what they cost here. I thought Sony was one of the first companies to actually acknowledge parity -- I think we now can buy a PS3 or PSP for the US MSRP here. (Pause while I curse buying a 60gig at the first prce drop out of fear of losing BC.) Games are a different story, however. I've had my eye on that MLB Power Pros game for the PS2 for some time, but I can't bring myself to shell out the added fee for living in the land of maple syrup. Thank goodness I seldom buy new. Nevertheless, I'm starting to look for an online retailer based in the US who'll send stuff over here without gouging on the shipping costs -- wherefore art thou, Liongames?
As for when the US dollar will find its feet again, the National Bank of Canada estimated that we'd see a US.95 loonie againaround 2009. So yeah, it might be a while. Here's hoping that retailers and game publishers get it right before then.