Valve employee explains regional pricing

Australian gamers community AusGamers had chat with Valve internal marketing and PR head, Doug Lombardi. It was a long chat but let’s look what about interesting part about regional pricing.

 

AusGamers: One of the big things then, that has come as a result of the selling side is regional pricing, which we happen to take a bit of a punch in the face in Australia over. Obviously, it’s a digital distribution platform, so you’re not really buying physical copies of anything. How do you guys work that pricing system out, because some games are 40 dollars here in the US but even with our dollar as strong as yours it’s still 80, 90 dollars in Australia. 

Doug: It’s something that’s just really hard to navigate. The value of currencies, especially in today’s market are going up and down. When we launched Steam, the Canadian dollar was about 60 cents to the American dollar; today it’s flat even. And there’s just tonnes of currencies around the world and we’re constantly trying to match that and work with the third-party publishers and how they want to price their games in what territories and when they want to release. So it’s constantly something that there’s a big army of people downstairs on the Steam team that are trying to manage, to give the best possible results to gamers and publishers for their games. 

There’s a balancing act there. Some places we get it more accurately on than we do in other places, but we’re trying to listen to people and adjust things to make sure that it’s a level playing field and that folks are getting a higher service value at the right price for their games. 

And folks vote with their dollars. If we’re getting it really, really wrong, that territory or that country will turn off and we have to stop and scratch our heads and say “well where did they all go and what happened? Was it a pricing issue and we need to resolve it?” But it’s something that we’re aware of and we’re constantly trying to manage, but I think it’s going to be one of those things where it’s always going to be an ongoing effort, because markets and currencies are always changing. We’re never just going to get it right, freeze it, and it’s always going to be okay. 

 

Source: http://www.ausgamers.com/featu…..ad/3037280 (just below the picture of Gordon Freeman)

No votes yet.
Please wait...

This Post Has 13 Comments

  1. Daniel

    Ok, fine…. then why charge us here in Australia in USD?
    There is no difference in the value of currencies when you charge us in USD, Doug’s comments are completely invalid!
    Think you need to fire your “big army of people downstairs” as it should only take one person to price games fairly across regions… specially if your charging them in the SAME currency!

    Dan said it best above:
    “Games are more expensive in europe because people are still buying it well. Deal with it..”

    No votes yet.
    Please wait...
  2. Rave_Zero

    Riiight….. which would mean that Valves is incapable of programming a simple automatic currency conversion script, while they write whole game-engines with millions of code.

    cmon just admit that you make the prices depending from publishers and selling numbers.
    Nearly no currency conversion involved at all.

    No votes yet.
    Please wait...
  3. Faky

    I would love to see them scratch their heads until blood pops out, so i won’t buy another game until they change this pricing bullshit. Talking and whining just wont bring us nowhere, its time for literally no action at all.

    No votes yet.
    Please wait...
  4. tvbegovic

    Pure, major league, PR-marketing bullshit.

    No votes yet.
    Please wait...
  5. rottencat

    http://forums.steampowered.com/forums/showthread.php?t=1815717

    No votes yet.
    Please wait...
  6. stranded

    Haha, hi guys.

    “but we’re trying to listen to people and adjust things to make sure that it’s a level playing field”

    Fucking idiot. No one ever listened to us. Suck on my PS3 Valve.

    No votes yet.
    Please wait...
  7. Dan

    I see his point – it’s not about currencies, but its this sentence: “we work with the third-party publishers and how they want to price their games in what territories……. There’s a balancing act there …… folks vote with their dollars..”.
    He is sort of P.R. person from Valve and can’t say just:: “Games are more expensive in europe because people are still buying it well. Deal with it..”

    No votes yet.
    Please wait...
  8. Xiyng

    Going up and down? The lowest the euro has been in the last few years is probably some $1.20 or slightly more, usually being above $1.30 or even above $1.40. Add VAT and European prices are still tens of percents higher. And the Australian dollar, that’s even worse… Fluctuations are certainly not an explanation at this point, just a horrible excuse.

    No votes yet.
    Please wait...
  9. Microwave

    I read this and try to get sense out of it but all I can smell is bullshit.

    After reading this you will still ask the same question; “why the fuck prices are higher for EU and AU?”.
    Ongoing effort = bla bla, no effort from what I can tell (where are the results).

    No votes yet.
    Please wait...
  10. Amadeus

    No, it’s really a covering explanation imo either.

    BTW, I thought i would get a “thanks to Amadeus for pointing this out” ;)

    No votes yet.
    Please wait...
  11. Zuko

    bullshit!

    No votes yet.
    Please wait...
  12. SEKCobra

    Totally explains $ = €.
    Oh wait…

    No votes yet.
    Please wait...
  13. Dowst

    Thats, frankly, a bullshit explanation. There’s no reason why Darkspore should cost 50% (!!!!) more in Euro than in GBP or Dollar.

    No votes yet.
    Please wait...

Leave a Reply

This site uses Akismet to reduce spam. Learn how your comment data is processed.