{"id":53462,"date":"2013-05-13T00:40:17","date_gmt":"2013-05-12T22:40:17","guid":{"rendered":"http:\/\/mygaming.co.za\/news\/?p=53462"},"modified":"2013-05-13T00:43:59","modified_gmt":"2013-05-12T22:43:59","slug":"what-influeces-game-prices-in-south-africa","status":"publish","type":"post","link":"https:\/\/mygaming.co.za\/news\/features\/53462-what-influeces-game-prices-in-south-africa","title":{"rendered":"What influences game prices in South Africa?"},"content":{"rendered":"<p>Game prices are a frequently discussed aspect of the South African gaming market. Many factors are said to influence the price we pay at retail, and local gaming distributors Ster-Kinekor Entertainment (SKE) and Megarom Interactive have given us some insight into many of the questions gamers are asking. The core factors affecting game pricing are international exchange rates, the cost of shipping logistics, the quality of the game, and piracy.<\/p>\n<p>\u201cOur market is relatively the same as some of the EMEA territories, (with the exclusion of huge courier\/logistics costs in Europe),&#8221; said an SKE spokesperson. &#8220;The greatest influences are: exchange rate, distribution and logistics, to a limited extent demand, and quality for the product.&#8221;<\/p>\n<p>&#8220;It is mighty difficult for local distributors to influence or have impact on pricing. I can assure you that this is an on-going battle, as we strive to deliver the best product, day on day, as international markets, at the best price possible,&#8221; said SKE&#8221;<\/p>\n<p>&#8220;All\u00a0distributors\u00a0of games (and companies who import product) are under the same pressures from consumers and retail to keep pricing as low as possible. However, due to uncontrollable external influencers, this is not always possible,\u201d said SKE.<\/p>\n<p>Megarom echoed these responses, saying that &#8220;macro factors, such as exchange rates and regional pressures&#8221; and the &#8220;very high rate of piracy&#8221;\u00a0are influencers on game prices, but also highlighted that &#8220;if one looks at international comparisons, our local PC prices are still very favourable.&#8221;<\/p>\n<h3 class=\"my-4\">The price of a PC game<\/h3>\n<p>When asked about the pricing of PC games in SA, SKE said that the goal is to keep pricing on level with international prices, and there are a few things in place to try and ensure that.<\/p>\n<p>&#8220;PC is still a very buoyant platform in the gaming industry, and pricing has a been fairly static. The greatest volume in the category comes from budget, and a small percent from new releases,&#8221; explained SKE.<\/p>\n<p>&#8220;The view currently is to try and peg pricing in line with international where possible, and based the scale of game: I.E. a platform driver, like Diablo or Starcraft vs. multi-platform. The biggest issue encountered to achieve this is inflation, exchange rate volatility, and consumers using counterfeit game and\/or \u2018cracked\u2019 game codes,&#8221; said SKE.<\/p>\n<div id=\"attachment_34947\" style=\"width: 608px\" class=\"wp-caption aligncenter\"><a href=\"http:\/\/mygaming.co.za\/news\/wp-content\/uploads\/2012\/03\/Batman-Arkham-City-double-hand-crushsmall.jpg\"><img loading=\"lazy\" decoding=\"async\" aria-describedby=\"caption-attachment-34947\" class=\"size-full wp-image-34947\" title=\"Batman Arkham City\" alt=\"Batman Arkham City\" src=\"http:\/\/mygaming.co.za\/news\/wp-content\/uploads\/2012\/03\/Batman-Arkham-City-double-hand-crushsmall.jpg\" width=\"598\" height=\"336\" srcset=\"https:\/\/mygaming.co.za\/news\/wp-content\/uploads\/2012\/03\/Batman-Arkham-City-double-hand-crushsmall.jpg 800w, https:\/\/mygaming.co.za\/news\/wp-content\/uploads\/2012\/03\/Batman-Arkham-City-double-hand-crushsmall-300x168.jpg 300w, https:\/\/mygaming.co.za\/news\/wp-content\/uploads\/2012\/03\/Batman-Arkham-City-double-hand-crushsmall-80x45.jpg 80w, https:\/\/mygaming.co.za\/news\/wp-content\/uploads\/2012\/03\/Batman-Arkham-City-double-hand-crushsmall-100x56.jpg 100w, https:\/\/mygaming.co.za\/news\/wp-content\/uploads\/2012\/03\/Batman-Arkham-City-double-hand-crushsmall-150x84.jpg 150w, https:\/\/mygaming.co.za\/news\/wp-content\/uploads\/2012\/03\/Batman-Arkham-City-double-hand-crushsmall-170x96.jpg 170w, https:\/\/mygaming.co.za\/news\/wp-content\/uploads\/2012\/03\/Batman-Arkham-City-double-hand-crushsmall-297x167.jpg 297w, https:\/\/mygaming.co.za\/news\/wp-content\/uploads\/2012\/03\/Batman-Arkham-City-double-hand-crushsmall-530x298.jpg 530w, https:\/\/mygaming.co.za\/news\/wp-content\/uploads\/2012\/03\/Batman-Arkham-City-double-hand-crushsmall-625x351.jpg 625w, https:\/\/mygaming.co.za\/news\/wp-content\/uploads\/2012\/03\/Batman-Arkham-City-double-hand-crushsmall-250x140.jpg 250w\" sizes=\"auto, (max-width: 598px) 100vw, 598px\" \/><\/a><p id=\"caption-attachment-34947\" class=\"wp-caption-text\">\u201cPC is still a very buoyant platform in the gaming industry&#8221;<\/p><\/div>\n<h3 class=\"my-4\">The price of a console game<\/h3>\n<p>With regards to the console market, MyGaming asked how console game prices have changed over the few years.<\/p>\n<p>SKE said that \u201coverall the pricing matrix for a new console release has not changed; however, exchange rate fluctuations influence both the unit cost, in addition to distribution and logistics costs. As such the overall pricing for all gaming related products has been on an upward trend. Ultimately, the goal is to offer the best price possible to the end user.&#8221;<\/p>\n<p>Megarom explained that the console price tags SA gamers will be familiar with are a direct result of exchange rate pressures. &#8220;We have seen most console game prices move from a R599.00 to a R699.00 price point; [although] a good number of retailers have incredibly competitive pre-order prices which consumers should keep a look out for.&#8221;<\/p>\n<h3 class=\"my-4\">Console versus PC game prices<\/h3>\n<p>Many gamers have wondered why PC games are cheaper than the console version of the same game. SKE explained that the price difference is due to licensing, royalties, and fixed production cost differences, along with the demand for the game as a result of piracy.<\/p>\n<p>&#8220;Piracy, or \u2018cracked codes\u2019, adversely impact the industry and the availability of new titles. As long as people keep on using pirated games, the less content will be headed toward the format. Millions go into development and support for a game, and due to piracy, it makes it difficult to continue producing quality product in the category,\u201d explained SKE.<\/p>\n<div id=\"attachment_52097\" style=\"width: 608px\" class=\"wp-caption aligncenter\"><a href=\"http:\/\/mygaming.co.za\/news\/wp-content\/uploads\/2013\/03\/Tomb-Raider-2013-review-screenshot-1.jpg\"><img loading=\"lazy\" decoding=\"async\" aria-describedby=\"caption-attachment-52097\" class=\"size-full wp-image-52097\" alt=\"Tomb Raider 2013 review\" src=\"http:\/\/mygaming.co.za\/news\/wp-content\/uploads\/2013\/03\/Tomb-Raider-2013-review-screenshot-1.jpg\" width=\"598\" height=\"336\" srcset=\"https:\/\/mygaming.co.za\/news\/wp-content\/uploads\/2013\/03\/Tomb-Raider-2013-review-screenshot-1.jpg 800w, https:\/\/mygaming.co.za\/news\/wp-content\/uploads\/2013\/03\/Tomb-Raider-2013-review-screenshot-1-267x150.jpg 267w, https:\/\/mygaming.co.za\/news\/wp-content\/uploads\/2013\/03\/Tomb-Raider-2013-review-screenshot-1-600x337.jpg 600w, https:\/\/mygaming.co.za\/news\/wp-content\/uploads\/2013\/03\/Tomb-Raider-2013-review-screenshot-1-625x350.jpg 625w\" sizes=\"auto, (max-width: 598px) 100vw, 598px\" \/><\/a><p id=\"caption-attachment-52097\" class=\"wp-caption-text\">&#8220;Piracy makes it difficult to continue producing quality product&#8221;<\/p><\/div>\n<h3 class=\"my-4\">AAA versus the rest<\/h3>\n<p>Another question revolves around the pricing differences between lower-to-middle tier games, and those of \u201ctriple-A\u201d titles.<\/p>\n<p>\u201cThe development of games is risky business. In order for developers [and] publishers to invest into new IP\u2019s, and to work to deliver better quality games, a premium cost is attached,\u201d said SKE. \u201cThis price, as a basic has been static for years. On occasion, a strong title platform driver will surface, and these titles can command a higher retail tag. However the goal, with all games, regardless of calibre is to offer the best price to end user.\u201d<\/p>\n<p>Megarom went on to explain that South Africa has a very unique game market, and while we do face challenges, we also have great benefits as well.<\/p>\n<p>&#8220;An area that South Africa really excels in, versus international markets, is the huge value and variety in our back catalogue ranges, as gamers are really spoilt for choice and can pick up some serious bargains. Internationally, this range is just not available at store level,&#8221; said Megarom.<\/p>\n<p>&#8220;In a perfect world, we would like to keep gaming as affordable as possible, as price has a huge impact on sales,&#8221; added Megarom. &#8220;It is in the interest of everyone to try and keep prices down as more games sold means we are able to grow this amazing market into the future.&#8221;<\/p>\n<p>EA South Africa and Apex Interactive were contacted for their comment, but did not respond by the time of publication.<\/p>\n<h3 class=\"my-4\">Other gaming features:<\/h3>\n<p><strong><a href=\"http:\/\/mygaming.co.za\/news\/features\/53238-games-you-need-to-know-about.html\">Games you need to know about<\/a><\/strong><\/p>\n<p><strong><a href=\"http:\/\/mygaming.co.za\/news\/features\/53444-far-cry-3-blood-dragon-nostalgia-nightmare-or-retro-love-letter.html\">Far Cry 3 Blood Dragon: nostalgia nightmare or retro love-letter?<\/a><\/strong><\/p>\n<p><strong><a href=\"http:\/\/mygaming.co.za\/news\/features\/53348-best-cyborg-heroes.html\">Best Cyborg heroes<\/a><\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"<p>&#8220;It is in the interest of everyone to try and keep prices down&#8221;<\/p>\n","protected":false},"author":196,"featured_media":51163,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[20],"tags":[8655,21,2219,2414,2752,5793,5794,9659,819,9825],"class_list":["post-53462","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-features","tag-game-prices","tag-headline","tag-megarom","tag-megarom-interactive","tag-sa-gaming-market","tag-sa-gaming-news","tag-sa-news","tag-ske","tag-ster-kinekor","tag-ster-kinekor-entertainment"],"_links":{"self":[{"href":"https:\/\/mygaming.co.za\/news\/wp-json\/wp\/v2\/posts\/53462","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/mygaming.co.za\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/mygaming.co.za\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/mygaming.co.za\/news\/wp-json\/wp\/v2\/users\/196"}],"replies":[{"embeddable":true,"href":"https:\/\/mygaming.co.za\/news\/wp-json\/wp\/v2\/comments?post=53462"}],"version-history":[{"count":1,"href":"https:\/\/mygaming.co.za\/news\/wp-json\/wp\/v2\/posts\/53462\/revisions"}],"predecessor-version":[{"id":53799,"href":"https:\/\/mygaming.co.za\/news\/wp-json\/wp\/v2\/posts\/53462\/revisions\/53799"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/mygaming.co.za\/news\/wp-json\/wp\/v2\/media\/51163"}],"wp:attachment":[{"href":"https:\/\/mygaming.co.za\/news\/wp-json\/wp\/v2\/media?parent=53462"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/mygaming.co.za\/news\/wp-json\/wp\/v2\/categories?post=53462"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/mygaming.co.za\/news\/wp-json\/wp\/v2\/tags?post=53462"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}