Local game prices compared

29 September 2009

Games pricing in SA is a touchy subject. Local gamers have had to bear the brunt of import taxes, shipping fees and of course a volatile exchange rate. Often expectations are unrealistic and gamers are quick to point out the fact that we pay more for our games in SA than people do in the USA and Europe.

The reality is that we live in a far smaller economy than those countries which we compare our pricing to. The USA has a total population of 307 million people, and of those 307 million, a significant portion are middle to high-income earners.

This allows distributors and retailers to target a much bigger audience in the USA than they can in SA, which means that they do not need to make as much profit per purchase as South African distributors do in order to be profitable.

Most new console games in the USA retail for $60 (R440). In contrast, the same new games launch in SA for between R600 and R800.

The reality of the situation is that console games in particular will always be more expensive in SA than in European countries or America. Unfortunately basic economic principles dictate that this must be the case.

The best thing that money conscious South Africa gamers can do is make sure that when they buy a game, they buy it from the retailer who is selling it at the best price.

While the larger stores should, in theory, be able to sell games for less than the smaller, less established retailers, this is not the case.

We compared the price of four PC games, four Xbox 360 games and four PS3 games at five different stores; BTGames, Zaps, Take2.co.za, Kalahari.net and Look&Listen.

BTGames is South Africa’s largest dedicated games retail chain and Zaps is a small independent store that operates out of Brightwater Commons in Randburg, JHB.  Take2 and Kalahari are both well known internet based retailers and Look&Listen is a mega-chain with stores all over the country.

Pricing comparison

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If one were to buy these twelve games from Kalahari.net, it would cost R1230 less than if they were to buy them from Look&Listen.

Kalahari is also the only retailer listed that delivers free of charge for purchases costing more than R375, which is most of the games listed. Take2.co.za offers decent prices, but charges a R30 delivery fee, making Kalahari a superior option for those ordering online.

Zaps manages to slightly undercut BTGames, being between R20 and R50 cheaper on most games than the chain store. Of course there are exceptions, for example, BTGames has the cheapest price on Dawn of War II for PC as well as Street Fighter IV for Xbox 360.

Kalahari came out best in this sample test, while Zaps was second and Take2 and BTGames took third and fourth place respectively. If we factor in Take2’s shipping fee then BTGames is cheaper. Look&Listen predictably came in a very distant last place being the most expensive every time.

It definitely pays to do some research before buying a game in SA. A ten minute Google search can easily save you R50 in most instances. Not only does it benefit consumers in the short term to support the cheapest retailers, but it also ensures that these retailers remain viable, and can therefore continue to sell games for significantly less than the bigger chains such as Incredible Connection and Look&Listen.

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