@ben_h said:
Yeah, prices are getting pretty rough. Glad I didn't get either of the new consoles because over $80 for a game is insane. Luckily, things seem to go on sale faster on PC.
It is kinda amusing that when our dollar was 10-15 cents higher than the US dollar, prices didn't reflect that (usually they matched US prices), yet now that it's 20 cents lower suddenly we have this 20-25% increase in prices.
I don't recall a time when the Canadian dollar was ever 10-15 cents higher than the US dollar. For just over a week in November of 2011, the Canadian dollar fluctuated from within a range of 6-9 cents over the US dollar, but that's it. Other than that, when the Canadian dollar was almost in equivalency with the US dollar for extended periods, it jumped around plus or minus a few cents. I'm not an economist, but a few cents of fluctuation beyond equivalency doesn't warrant much change in standard market price for goods, if any.
As for the recent increase in game prices, obviously as a gamer I am not a fan. However, the price in Canada isn't far off from what people are spending in the United States. Current standard in the US is $59.99 for console games, which translates to about $74.92CDN. Most games in Canada are $64.99-$69.99, which actually translates to Canadians paying less than what the Canadian dollar is worth on the global market. In fact, the most recent price on some newer titles of $74.99CDN actually brings Canadian game prices in line with what people are spending in the US.
When sales tax is brought into the equation, things change a bit, albeit slightly. Between the most taxed state in the US and the most taxed province in Canada, the Canadian will pay ~5% more on a game that costs $74.99CDN. If they were purchasing a $69.99CDN game, they would actually end up paying ~1.8% less. If you compare the median rate of taxation between the two countries (excluding Canadian territories, Alberta, non-taxed states, and Alaska), the Canadian will pay ~6.2% more on a game that costs $74.99CDN, and ~0.9% less on a game priced at $69.99CDN.
I'll say again that I'm not a fan of game prices going up, even more so if the $74.99CDN price point becomes the new standard, which seems likely. In Canada, though, we are definitely not paying 20-25% more than what people in the US are paying when considering what our currency is currently worth. Hopefully we'll see the Canadian dollar regain its value in the coming year so that prices drop, but as it stands, pricing trends are happening for a reason, and although I don't like it, it makes sense.
Log in to comment