Steam vs. Local retail pricing

Last week we wrote about the effects which lowering broadband prices could potentially have on game distributors in SA. The PC game market is still a powerful force in SA, but cheaper broadband means that gamers will have better access to digital distribution platforms such as Steam as well as easier access to illegal download networks.

Steam is officially the largest reseller of PC games in the world, and more people buy games from digital distribution channels than traditional retail outlets these days. South African distributors have for the past few years been protected by expensive bandwidth which has prevented digital distribution from being financially viable for most gamers.

This is changing, however, and uncapped internet is now an affordable reality for many local gamers. Over the next few years broadband prices are only likely to come down even further, and with them, digital distribution looks likely to increase.

As it increases, local distributors may struggle to compete. However, pricing, as usual will be a key determining factor in the direction which the market takes. With that in mind, we compared Steam and local retail pricing on a range of games.

As is evident in the table, local pricing is extremely competitive, and illustrates a rare case of where a luxury entertainment item is actually usually cheaper in SA than in Europe or the US.

In some cases, it is possible to buy a PC game locally for aroundR100 less than it is available for on Steam. There are a few incidents where Steam comes out on top with pricing, but these are in the minority. 

Furthermore, local retailers often offer added incentives, such as T-shirts, figurines or stickers for pre-orders, further sweetening the local purchase deal.

For now, it seems that local retailers are often able to offer better value than Steam, even if we take Bandwidth costs out of the equation. 

Do you prefer to use Steam or to buy games from local retailers? << Share your views in the forums