ORIGINAL: Joe 98
The Global Financial Crisis should be renamed the North Atlantic Financial crisis. Our banks were better managed and the crisis had only a minor affect here.
As a result the AUD has strengthened against other currencies.
For us the game costs AUD$90.00. This is the same price as most new games whether or not they be wargames.
The price rise for foreigners can be blamed on the bankers in Wall Street and in the City of London!
The weakness of the USD against the AUD has little to do with the banking problems in the USA, but rather the worsening fiscal position (i.e. deficits), and concerns about the continuing reliance of the U.S. on foreign financing (by purchasing US Treasury securities).
The Australian dollar is being supported by the strong fiscal position of the Australian economy, as well as the capital inflows by foreign investments in resource projects and assets (i.e. Chinese purchases of Australian coal).
Furthermore, a prudent business hedges itself against currency movements which could affect it's business. If Panther has an exposure to the USD (if that is it's principal market), then it has 2 choices:
1. Raise US prices if the AUD strengthens (to maintain constant AUD unit revenue), but at the expense of lower total revenue (as US sales are lower due to higher prices). Note, that if the AUD weakens, then the Australian business can have a windfall gain.
2. Hedge it's currency exposure to protect against adverse currency moves. This can also mean (depending on the hedging method), that it will not receive windfall gains.
By not hedging currency exposure, Panther is most directly responsible for the higher US prices.
None of which has anything to do with the pricing of a PC game. Or did you not notice that New Zealand developed Distant Worlds managed to be offered for far less then what is being asked for here? Or Australian developed AtD? If you want to compete in the US market or European market or wherever, you offer your product at a price that is comparable with other items you are competing with. The relative financial situations have nothing to do with it. $60 is about as high as you can go for a PC or video game in the US and not get a big negative reaction. I'm sure Matrix knows that and so does Panther. They've made a choice here. I personally disagree and won't be buying the game and I'm not alone in that. But ultimately, whatever happens, it will be Matrix and Panther that will bear the burden of the decision, not me.
< Message edited by Sarkus -- 5/27/2010 8:17:23 AM >