NCSoft Explain Pricing Discrepancy with CE in US and Europe

Guild Wars 2 Collector Edition Contents

Guild Wars 2 Collector Edition Contents. Pricing $149.99.

As many of you wil have noiticed, it’s more expensive to get your hands on a CE of Guild Wars 2 if you are in Europe. So why is that? NCSoft has commented on this because the CE costs $149.99 in the US and €149.99/£129.99 in Europe. With the with the excahnge rate you can see it’s a lot cheaper to buy in the US.  So why is this? Well it’s all down to distribution and local taxes according to NCSoft.

“Currency fluctuations, distribution costs, taxes and market conditions in addition to the cost of goods are all contributing factors when setting pricing. These vary dramatically between NA and EU and our pricing is competitive and adjusted accordingly.”

Sadly it looks like EU gamers are being shortchanged again but NCSoft does have a point, it is generally more expensive this side of the pond.

Source: PCGamer

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  • Even for a product that involves something palpable like the CE, a discrepancy of one third of the price (as NCSoft set a price with € = $) is high. Don’t let me think about the pure download content of a digital edition…

  • What they fail to mention is how a digital distribution cost them more here in Europe.
    I’m also curious about the OTHER way. How often have a €50 game from Europe cost $50 in the states?

    They can say whatever they want. Still makes me feel like I’m getting shafted. I’m not averse to paying for quality (heck, I inted to use the in game store), but the dollar-to-euro exchange just feel so artificial.
    I mean, does distribution and taxes scale JUST enough that $1 is the same as €1? I think not…

  • Are salaries the same once express everything in American dollars? Is the CE actually making a bigger hole in your finances than it does Americans? Is it cheaper to take a trip from US to Europe, or vice-versa?

    I wouldn’t blame them for charging a bit more in countries that can easily afford it.

  • Still not a good enough reason for digital €=$ crap, and I do doubt those costs amount to roughly a 30% higher retail cost as well. What they’re basically saying is EU developed games should cost more in the states then?
    The only reason NCSoft has a point is because every company is doing it and gets away with doing it because there are no other options most of the time. Not really a fair excuse to your market though.

  • So what you’re saying is that USA, one of the leading countries in the world, is poorer than most european states? Might be true, but that’s their own damn fault for squandering what they had.

    Besides, we’re talking PEOPLE here, not countries. I have a relatively crappy income, barely eking by, and find it just unfair that I have to pay 30-40% more than someone else in the US with the same economic situation that I have.

  • No, what I am saying is that although you are in the same economic situation compared to someone in the US, you get an automatic rebate for importing because of the exchange rate, whereas they get an automatic penalty for importing for the same reason.

    If you don’t just consider the exchange rate, but also salary and living costs, it paints a different picture. Or at least, it might, I don’t actually know enough to say if that is indeed the case.

  • To clarify.

    In a small town link Kingston, your Canadian dollar gives you a lot more than in a big town like Toronto. And that’s without exchange rate. Your salary is lower, and yet your standard of living can be higher.

    One might complain about making less money, but it wouldn’t be a valid complain unless you factor in the cost of living as well. The same applies to comparing across countries, except that the exchange rate also plays a role, in addition to everything else.

  • True enough, I suppose. I just don’t see how it has anything to do with cost being higher here. Even ArenaNet hasn’t listed that as a reason.

    No, I honestly think a lot of it is just laziness.
    It’s way easier to just say that [$50 + tax = €50] rather than do some real arithmetics and figure out that [$50 + tax = €43.7] or something similiar. Saves them time and gives them a few more bucks to improve the game with.

    Mind you, I’m not blaming ArenaNet spesifically, but the entire game industry as a whole. It’s a lazy and greedy philosophy, and I just don’t see it as fair. PARTICULARLY when it comes to digital distribution (I’m getting the Deluxe digital) where there’s no physical product to ship and handle.

  • I really doubt ANet would be so lazy as to not be able to convert prices. I think the full story involves a few people (or at least one who knows his economics) to figure out how many sales they’ll get as a function of pricing, in order to decide what price will get them the most money. All companies to that, I assume. It’s not as simple as asking for more money, because if you increase price, you’ll have fewer sales.

    I think the real reason is that once you take everything into account (exchange rate, median salary, cost of living), the reality is that Europeans can afford to pay more for their entertainment than Americans.

    If that is indeed true, then this complaint falls under #FirstWorldProblems. And yes, I did say *if*, because I do not know whether that is true…

  • LOL!
    No IF’s about it. Anything related to digital entertainment can be classified under #FirstWorldProblems. ^_^

    Doesn’t mean it isn’t annoying, though…

  • LOL yeah, definitely #FirstWorldProblem then hahah!

    But what I meant is that even for digital stuff, pricing might be adjusted for cost of living and median salary, thus making just looking at the price in dollars not a fair complaint.

  • By that rationale I should only pay $3 for a bread at my place but $5 on the other side of town, despite the bread being made the same place and delivered equally far from the bakery. :-/

  • The problem with analogies is that they tend to oversimplify the problem to the point that it is no longer relevant.

    What if the store selling the bread 5$ also has to pay twice as much in rent?