Thursday, July 30th 2020
Steam Updates Pricing Restrictions to Combat VPN-based Exploitation of Regional Pricing
Steam has updated their purchase and pricing restriction in wake of continued abuse from users exploiting regional price-differences via VPN. You may have read about this recently following the availability of PS4-exclusive Horizon: Zero Dawn on the PC platform, with the release being priced differently by the publisher according to the purchase region of its respective users. However, one way users found to circumvent these restrictions and purchase games at a lower price was to use a VPN service and appear as if they were connecting from one of the lower-priced regions. This prompted a price-hike for Horizon: Zero Dawn in those exploited regions - sometimes by as much as 389%. Such was the case for Argentina, where the game, which was originally being sold for ARS$539,99 ($7,47) got its price hiked to ARS$2100 ($29,06). The game was being sold in US-based stores for $39.
Now, Steam is forcing currencies used on the purchase to match those of the country where the purchase is (apparently) being made. This means you can't pay in dollars a game that is priced in Argentinian pesos or any other currency. This move by Steam aims to keep pricing fair according to users' and countries' purchasing power, and aims to protect users with lower purchasing power from price-hikes derived from the exploitation of regional pricing. An Argentinian user, where the country's minimum wage is set at $233,55, now is protected from users with higher purchasing power being responsible for game price hikes that mean it costs them 10% of their minimum wage to get a single game from the Steam store. You can replace Argentina with any other country that saw its regional pricing being abused via VPN-hidden users who wanted to take advantage of the price difference. I can hear some Game of Thrones bells ringing in the distance.
Sources:
KitGuru, Guru3D
Now, Steam is forcing currencies used on the purchase to match those of the country where the purchase is (apparently) being made. This means you can't pay in dollars a game that is priced in Argentinian pesos or any other currency. This move by Steam aims to keep pricing fair according to users' and countries' purchasing power, and aims to protect users with lower purchasing power from price-hikes derived from the exploitation of regional pricing. An Argentinian user, where the country's minimum wage is set at $233,55, now is protected from users with higher purchasing power being responsible for game price hikes that mean it costs them 10% of their minimum wage to get a single game from the Steam store. You can replace Argentina with any other country that saw its regional pricing being abused via VPN-hidden users who wanted to take advantage of the price difference. I can hear some Game of Thrones bells ringing in the distance.
63 Comments on Steam Updates Pricing Restrictions to Combat VPN-based Exploitation of Regional Pricing
On one hand, games are indeed a luxury item and should be a discretionary item, as such. When someone is not well off or has fallen on hard times, and every dollar (I will just use that term, dollar, for easy reference) counts, then spending money on games will not improve your situation. That money is better spent on slowly but surely saving every dollar you can so that one can lift themselves up.
25 years ago I had left active duty army service after 4.5 years (I continued till 14 years in the Reserves). My job prospects were horrible in the expensive state of Vermont, so I took whatever I could, even working 3 jobs. Wife and a son, with another on the way, I still couldn’t make it. We moved into public housing, got food stamps for about 6 months, and saved every dime I could. I bought no CD’s (yeah, that’s the time period, LOL), had no cable, went to no movies. Finally with alot of hard work and getting a good job here in Louisiana, I was able to keep the creditors at bay and handle the necessities.
Even then, there weren’t many extras. Saved some more, worked as many hours as I could and finally bought our first house, just a small one. It wasn’t until 2005 that I finally had enough income to actually have discretionary income. Suddenly we could go to movies, get all the cable channels, and only then did I really start buying PC games. Now, after 22 years in that job I had worked hard enough that I was able to retire early today.
What’s my point? Well that lesson should apply to those hard working people that are not well off at the moment, and who are in what we may call the more affluent countries. Yes, it sucks giving up nice little luxuries like games. But the payoff in the long run IS there. This is related to why I used to give away games here. I felt that people who put their names in probably had a harder time buying them new, so why not give them some of those luxury items to make their free time better without a financial burden.
Do I think this same model applies to people in what we term less affluent countries? No, because even my example may not work for them. So for those countries I believe in regional pricing. Reason being is that many may be somewhat comparable to a situation like mine in their country, but at a lower income level. So even those people who are doing all the things I did, aren’t going to be able to reap the rewards and buy for instance, nice games. They should have regional pricing. They deserve leisure activities too. There also should be some system in place to keep people from more affluent countries from cheating the system and buying their games cheaply on regional pricing models. This can only hurt our fellow humans in those countries.
So, in both situations, when times are extremely tight, buying games is not going to improve your financial situation. But once it has improved, and there is discretionary income, Everyone should be able to only buy games from their region. Basically I see it from both sides.
Steam sales stopped being what they were when refunds became a thing. This effectively stopped any variable discounts like daily sales and some others that were a nice pull to the store.
When it comes to the actual discount you get, it might be the same, but the game element of it was indeed captivating :)
People wanting to pay it 7$ saying it's not fair that they can't cheat the system.
People wanting for everybody to pay the same price.
People firing at Steam.
People firing at studios.
Damn. Did you even look at the situation ?
I read only one decent comment : it's not that bad that Argentinians will need hell more money to play, because they should aim at making their life better, instead of spending it on something keeping them low. It's a video game, not food or medical supplies.
If you take the whole thing, paying via VPN is cheating and selfish for others, because every game bought that way at a high price for the region encourage them to keep them high for local population.
Production studio are not even always in rich countries, remember that. A game made by people in eastern Europe will cost them a lot less to develop and 60 or 70$ is a lot for them. They generally don't sell them that high.
Paying the same everywhere ? You wouldn't believe me. In France, a good dev can ask for 40k a year... taxes not included. After taxes, it's around 32-33k€ which is, for most of Europe, pretty decent. But in Northen countries, it's not enough because you need to sell a kidney for drinking coffee !! Danemark it's 6€ for a coffee in a normal restaurant (Danish people, correct if I'm wrong). If you compare other thing of everyday life, beef is 17-18€/kg in France and 8€/kg in Ireland.
In the USA you can have 100k for the same job. But you'll need a pretty good insurance, rocket high rent, and college for your kid @100k$. Whereas in many countries, like France or Sweden, education is practically free (it's changing, but still). Same for hospitals, insurance (they are quite low compared to US ones), loans, etc.
In the end, you may think that price will stay as is, but in reality, prices will surely go higher for "the richer" because you are are falsely rich, because European system is large in favor of middle classes, giving them a good purchasing power, unlike most USA citizens.
To finish, Steam is not blame. Users are to blame. They just responded for the sake of developers. Imagine if everybody was buying the game @7$ and not 60$ ? No more profit = no more games = you will never be able to play a video game again.
Play smart not selfish, but for human kind, I found that harder and harder every day that they can do it.
Regional pricing for software exists because the cost to produce a license is essentially ZERO. Game producers are not doing charity by lowering pricing for LatAm.
They are seeking the most amount of profit, since if they price $60 in those countries, the game won't sell and they'll receive way less money.
For them it's way better to sell 1M copies for $20 than 100K copies for $60
Why do you think Adobe and Microsoft gives discounts on software for students?
For the same reason
It's about profit.
Anyone living in Iceland currently ?
Because if they pay twice (like basically everything), it might hurt :D