This is how insanely expensive R1,000 per game in South Africa is

[Jamie McKane]

This is how insanely expensive R1,000 per game in South Africa is

When you take purchasing power into account, R1,000 for a video game looks plain ludicrous.

 

[Jan]

By the power of maths! I bring you a sweet, sweet comparison.

 

[BeoTeK]

This is basically how I evaluate cost vs entertainment. Thanks, though a lot of people tend to disagree.

 

[Solitude]

Why is there such a disparity though?

 

[HavocXphere]

Why is there such a disparity though?

Look at the PP column in the games table. (The rest of the analysis I'd take with a wheelbarrow of salt tbh). That shows games are more expensive in SA after being PP adjusted.

That is because you're importing something (meaning low local cost of living is irrelevant) and you're doing so from a country with low purchasing power. That not a games thing - its true for all imports. If you take a random iFruit device you'll see the same...they're roughly priced the same everywhere (like the games in the table before PP adjustment) but after factoring in that people in say the US earn a lot more its much more affordable.

Or put differently...South Africans are paid poorly but don't notice because most of their expenses fall into the local low cost of living category. Only when they start importing iFruits and games then it becomes obvious.

Unrelated - every single UK cinema I've seen has flat rate pricing & the once-off rate is sky-high purely to motivate people to get a flat rate monthly contract. (Takes round 2 movies a month to break even). So yeah...as a starting point for an analysis perhaps not the best Step 1 to use the fake once-off rate.

 

[Solitude]

Look at the PP column in the games table. (The rest of the analysis I'd take with a wheelbarrow of salt tbh). That shows games are more expensive in SA after being PP adjusted.

That is because you're importing something (meaning low local cost of living is irrelevant) and you're doing so from a country with low purchasing power. That not a games thing - its true for all imports. If you take a random iFruit device you'll see the same...they're roughly priced the same everywhere (like the games in the table before PP adjustment) but after factoring in that people in say the US earn a lot more its much more affordable.

Or put differently...South Africans are paid poorly but don't notice because most of their expenses fall into the local low cost of living category. Only when they start importing iFruits and games then it becomes obvious.

Unrelated - every single UK cinema I've seen has flat rate pricing & the once-off rate is sky-high purely to motivate people to get a flat rate monthly contract. (Takes round 2 movies a month to break even). So yeah...as a starting point for an analysis perhaps not the best Step 1 to use the fake once-off rate.

Excellent. Thanks for the good explanation HavocXphere.

 

[Jan]

Why is there such a disparity though?

There are simple answers, and then there's the long answer which will be a combination of all the simple answers

Or put differently...South Africans are paid poorly but don't notice because most of their expenses fall into the local low cost of living category. Only when they start importing iFruits and games then it becomes obvious.

This is one of those simple answers.

Another simple answer, which I may explore in a future article, is that the price of games have rocketed beyond inflation much faster than the price of movie tickets have.

There could be a few reasons for this.

To complicate this a little: consider the audiences of movies and video games. South Africa's movie audiences tend to be me more diverse (in terms of income level) than the base of gamers are. This comes down to simple economics - gaming is an expensive hobby that requires you earn a certain level of income to even afford a console or PC.

Games therefore only have to be affordable enough for people in that income bracket to buy them. Not that the high price of games hasn't hurt the local industry, but not nearly as much as it would hurt the cinemas if Ster-Kinekor and Nu Metro were to start charging what their counterparts in the US and UK charge.

So yeah...as a starting point for an analysis perhaps not the best Step 1 to use the fake once-off rate.

Disagree completely. Read this for great insight into UK movie pricing: What’s the average cost of a cinema ticket?

Each country has its own discount programmes, but according to Ster-Kinekor, people using monthly passes for movies in the UK are in the minority.

If you don't believe SK, then check out the Odeon website regarding its "Limitless" programme. For 3D screenings, and "premium screenings or seat types" you pay extra.

I could complicate the comparison and include the various discounts available at Ster-Kinekor through Edgars and Sanlam Reality, and I suspect the ultimate result would be the same.

 

[B1nary]

If you factor in the amount of hours you spend playing a Game and then compare it to the average movie length things get interesting.

 

[Solitude]

Thanks [MENTION=289]Jan[/MENTION]!

 

[Saulan]

Or put differently...South Africans are paid poorly but don't notice because most of their expenses fall into the local low cost of living category. Only when they start importing iFruits and games then it becomes obvious.

On that point though, we are still paying significantly more for Apple products than what other countries are paying. When I was in the UK prior to Brexit, I bought the iphone SE 64gb for around R8,000 which was significantly cheaper than the R10,499 I would have paid in South Africa (as a South African, you also get to take off the 20% VAT for the phone which essentially made it around R6,400). Right now the biggest iphone 7 in the UK will cost R13,317 vs the R16,999 you will pay here. Take off the VAT for fun and you have a R17,000 phone for R10,655. (just for fun, only the previous price is properly comparative).

 

[HavocXphere]

On that point though, we are still paying significantly more for Apple products than what other countries are paying.

'tis true. Its wild. On an iPhone there is a good 5k difference on the top end. Same for most electronics.

Each country has its own discount programmes, but according to Ster-Kinekor, people using monthly passes for movies in the UK are in the minority.

They're quite common. I've got one of those UK unlimited cards in my pocket as do the majority of my friends. Seen someone pay the cash once-off fee exactly once...me paying when my sis from ZA was visiting.

In fairness its perhaps a brand thing - I'm talking about Cineworld. Its possible that their business model is fundamentally different from SK. (Haven't been to a UK SK - no reason to given unlimited)

For 3D screenings, and "premium screenings or seat types" you pay extra.

Yup. Costs a pound extra. As a reference point a cup of coffee costs me 2.5 pounds. Even that is waived after the first 12 months. Don't really think its an issue one way or the other.

On a side note...the food/drink prices @ cinema in UK are the wrong side of stupid. They're not shy about their unlimited cards 'cause they know you'll get screwed that side and the more use you make of said unlimited the more food you buy. The whole thing is very distorted.

Games therefore only have to be affordable enough for people in that income bracket to buy them.

No affordability in this context (comparing countries 1:1 with only PP adjustment) is not a function of income brackets. If you do that then you'd need to compare what the richest X% in the UK can afford vs the income bracket in ZA you're talking about. Has to be comparable.

which I may explore in a future article, is that the price of games have rocketed beyond inflation much faster than the price of movie tickets have.

May I suggest using something like petrol price instead/in addition to? I realise thats not entertainment but: Not only is the relevant data much more accessible its also much easier to present that as a bullet proof starting point: Brent crude price isn't up for dispute, FX isn't either, demand and supply is somewhat stable and SA petrol price is fixed based on formulas. So aside from ZA gov screwing with the petrol levy it should be pretty easy to analyse over a period of time in a credible way...and I'm sure historic steam prices can be sourced from somewhere too.

Regardless, my post had an inappropriately negative tone and for that I apologise - this type of article is something myself and other have wanted to see more of & I realise that my initial response didn't uhm convey this.

 

[McT]

It was an interesting read this: article and comment above ^

While I could stretch to buy games at prices when first released, I am increasingly finding that waiting a wee while doesn't hurt my desire to get it, play it. Civilization VI is a prime example. Yip, I am looking forward to playing it. Just not at the new release pricing. I am content to wait until it falls toward a more affordable price.

The only deviation from this would be a new release of a game which I enjoy (Starcraft, Civilization) and the pre-order comes with stuff I would particularly love to own. Starcraft did that with their Wings of Liberty, Heart of the Swarm and Legacy of the Void.

Edit: I have found that I am happier to pay for in-game items I would like to get, such as in Simcity BuildIt (mobile or tablet platform).