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
Spain is much much more directly implicated than donating a 0.11% of the GPD. That's what the US donates. Spain does a 2% currently, I think, and does a lot more than just that.
Google Spain donations for a wider picture of the truth.
They have obviously had a sit down and said "what the hell are we going to do about this financial crisis?"
"Well the dollar is real weak now and so we're not making as much money from Europe as we were. As we are changing all out $$ in to Euros like many other companies!"
"so let's take advantage of our European market and charge them in Euro's, that way we can kill 2 birds with 1 stone - we have Euro's and we have more money"
"yea, i hate the French"
I believe it should be equal price for equal goods from the same supplier. Any other way is just discrimination.
Do Nike go to Cambodia and say, right we'll pay your workers $5p/h because we are buying the shoes you produce and we are from America?
Imagine going on E-Bay, buying something then the person saying, well you live in europe, instead of me charging you $50 i'm going to charge you 50euro, oh but i'll pay the tax.
What would you say to that seller?
Anyway as silkstone said, what would you do if you had to pay $300 for your shoes? That's what you'd have to pay if the companies paid what the people doing them deserve. It's not different with hardware or anything the world and specially the US consumes. All the developed countries steal, US just does it more and what's worse is that it's the only one who thinks that doing wars is a good way of mantaining that status.
And bock on topic, there's no FAIR reason europeans have to pay $70+ for the same thing the rest of the world has "only" to pay $50. Period.
Let Europeans keep off purchasing from Steam. Let them (Valve) get the pinch. Hopefully they'll listen. I personally like to purchase hard-copies of my games (including those by Valve), and when they get cheap.
They are doing the same thing as EVERYONE ELSE. So why is it OK for others, but not Steam? I think EU's socialist style of economy sucks. If somebody has made something they want to sell, they should be able to sell it at any price they see fit, and they shouldn't have to disclose any secrets about it either.
If they set the price too high, and it doesn't sell, they fail. Where's the problem here?
But i think its the way valve went about it that got people by the balls...a bit more openness about the price increase would be good but its their call at the end of the day. This just gives users the choice now " do i pay for a hard copy or the convenience of steam ??" not a choice users want but they got it now.
But i still think we should have a revolution for our AUSSIE friends they got a raw deal:rockout::D, But why are games/Hardware so expensive in AUS in the first place ?
I think the complaint is good, and I hope a precedent is set at EU level.
LOTS of online/websites sell goods at very different prices depending on currency selected. I hope they are foced to stop.
play.com is a BIG offender. They have historically charged a lot lot more for EURO based purchases. I used to buy sterling and deliver to europe. They then stopped that and FORCED higher EURO prices on deliveries to Europe EVEN THOUGH their delivery cost (from Channel Islands) was the same.
Let's hope this issue gets solved at EU level.
As I too said I don't really and necesarily see anything wrong in them charging whatever they want, as long as THEY charge the same for everybody (then let any country decide the VAT they want to charge) or ultimately if they had the balls of admiting why.
If others selling in retail charged the same in EU and the US that wouldn't be fair for US customers or developers, because (AGAIN :banghead:) the cost of selling anyhing in EU, specially when it comes from the US is higher. But Steam is not the same, there are not any extra expenses derived from selling in the EU so, ethically, morally or whatever form you want to call it (maybe even legally, we'll see), they do not have the right to charge more in the EU than in the rest of the world. Discrimination violates the human rights AFAIK.
And it doesn't violate any human rights. Since when do games have anything to do with human rights? And they aren't discriminating. Everybody in the EU pays the same price.
Anyway DarkMatter has said all this before, so we're going round in circles, but i'll say it again.
It costs steam the same amount of money to deliver the product to a US customer as it does to deliver the product to the EU customer. With other physical goods (console games, clothing, .....) with the 1euro=$1 conversion a lot of that money is going to pay workers in the EU, taxes and i'm sure the company gets a few % extra. With steam the $1=1euro conversion, the extra goes to taxes but the bulk of it goes to the company. Which is unfair when you compare it to other US imported goods.
Most companies where you can buy software over the internet act fairly, you download the software from a US server and you pay the US price. STEAM IS AN EXCEPTION. Think of all the software on your computer - out of that software, what can be purchased on-line? I'm guessing most of it can. Now look on there website and go thru the ordering process, you will be charged in USD. I myself have at least $500 worth of software i have purchased/registered on-line and i paid the US price for it so $1=1Euro IS NOT STANDARD
They have every right to do that. If you don't like it, send them the message by not buying their games. It's plain and simple. If enough people feel their prices are too high, and quit buying, the prices will come back down.
I believe that as the consumer isn't receiving the same goods as bought in store, it should be cheaper. For example, no CD (so no physical backup), no Box, no manual,.. and also steam users are saving the company money by using it's services it should pass on those savings to it's consumers.
You have a valid point, but i don't entirely agree, so lets just agree to disagree :toast:
There's also the fact that they want to charge more in one area, when it costs them the same. And no matter how you look at it, that's wrong. I don't care what your distorted view of what's fair makes you believe, it's not fair for us, that's our opinion, and the right to complain is OURS, not YOURS. This doesn't affect you so you shouldn't have posted in this thread in the first place, much less to contradict our opinons on something that shouldn't matter to you. PERIOD.
This new policy doesn't effect me, as i can't use steam, i can't even obtain legitimate copies of any game. But i used to live in Europe and so do care about the issue. And so i felt the need to express my opinion also.
So, if you don't like it, prove their economists wrong: don't buy the product off of Steam at the inflated price. If they see their bottom line declining because of the change, they'll change it back. Dollars and cents are the only language businesses understand. You decide what is "fair" or not by your "dollar vote."
PLUS if it's legal or not that's something still to be seen.
Dont worry that I won't buy any game from Steam, a lot of people won't. I won't buy Valve games neither, maybe HL:Ep3 to finish the series, but that's all. I was going to buy L4D this holidays, but never will.
BUT that won't prevent this move from being profitable for them. With the new margins they just imposed, they could sell 10 times less games and still make more money than before. That's the sad part, that no matter what we do, they win, we lose. Because it's easy that a 10% of people will pay whatever they charge, they always do.
EDIT: Oh and BTW, what you said about the cookies doesn't happen in the EU (at least for long), there are laws in place to prevent that kind of things. It's sad if that happens in US, but what it is more sad is that you see it something normal. I will never understand the conformism of the "americans"...