The high cost of video games Down Under continues to be a contentious issue for Aussie gamers. GameSpot AU has paid close attention to the game prices debate in the past, looking at a number of possible reasons for why Aussies pay more for games, including the high cost of distribution in Australia (due to the size of the country itself), our geographic isolation, and changes in traditional retail business models.

　　Yet despite the well-positioned Australian dollar, video game prices in Australia continue to remain high compared to other territories, leading more and more consumers to import games from overseas online distributors. This time, we thought we'd let the Australian games industry speak for itself, calling on a number of key figures to have their say on how the issue can be resolved once and for all.

　　Michael Ephraim

　　Managing Director, Sony Computer Entertainment Australia and New Zealand

　　"We can't control currency exchange rates. However, one thing [Sony] is doing is cutting down almost all our titles in Australia from A$109 to A$99; I know it doesn't go all the way to bridge the gap, but there are numerous product categories that are affected by this issue, from televisions to cars, and so on. There are also other things to consider, like different tax situations, a different cost base, different retail markets, and so on. These will all give us a disparity with US pricing.

　　"When we compare Australian pricing with European pricing, you can see we're spot on. It's something [Sony] is looking at addressing as much as we can, but we think a reduction of our AAA titles down to A$99 on release will help that along. This is something that is already in play for this calendar year."

　　David McLean

　　General Manager, Xbox Australia

　　"Microsoft supports recommended retail pricing. Our retail partners make decisions on the pricing they want to use by taking into account that [Australia] is a large land mass, that there are a lot of distribution costs, that there are margin models to look after, brick and mortar stores to support, and the cost of labour in this market is significantly higher. Microsoft is supportive of them, but we're also supportive of our consumers.

　　"There's an argument that people now need to look more closely at where they can get the right level of value in their purchases, and it's their right to do this and they should absolutely do it. It's no surprise to anyone that consumer sales are down. Retailing is tight, margins are shrinking, and a lot of our retailer partners are doing it quite tough. This all has an impact on the pricing of products at the moment and it's just something that we need to continue to understand."

　　Edward Fong

　　Head of Ubisoft Australia; Chairman of the Interactive Games and Entertainment Association (iGEA)

　　"In terms of pricing, the consumer will decide. They'll decide how much they want to pay, and whether they do it in a store or online. So although there are a lot of factors involved, ultimately it's up to consumers and we [Ubisoft] need to be receptive to that. We monitor this issue constantly. We want to make sure our gaming experiences are affordable and worthwhile and provide value.

　　"Are online retailers a threat? That's a big question that we need to ask. I think the challenge for traditional retailers is looking at how they can monetise the online space. It's already happening now, but we're only scratching the surface. I think that online is as much an opportunity as it is a threat."

　　Tony Reed

　　CEO, Game Developers Association Australia (GDAA)

　　"It's an interesting time for retail. We have one of the most educated markets in the world and our consumers know what they want. They go looking for information before making a purchase. It just makes sense to buy from overseas when you have this kind of proliferation of online options.

　　"I think this is an issue for the publishers and retailers; they need to sit down together and work it out. Traditional brick and mortar retailers are not going anywhere; in fact, I think they're going to be around for the next 10 to 15 years. The digital market is not measured by [retail and technology sales data tracking firm] GfK in Australia and so the data we have on game sales in our market is probably not as accurate as it could be and not reflective of the true Australian market. Consumers are now demanding parity, and it's much deserved. From a development point of view, developers have so many paths to market, especially in the digital space, and also direct communication with the consumer so they understand what it is the consumer needs and they adjust pricing to match the value of the product.

　　"I imagine because this is such a highly competitive marketplace it would be hard to get publishers and retailers to sit down and work this out. I think ultimately it will take just one publisher to decide to break with tradition and try something new and, given where the market is right now, everyone will follow. It will have to happen in the next five years, there is no choice."

　　Tony Lawrence

　　Head of 2K Marin Canberra; President of the Game Developers Association Australia (GDAA)

　　"The prices of games are always going to be set by publishers, and comparatively, they're still the same regardless of the exchange rate. Realistically, I don't think we can hope for more. Essentially, it's up to the publishers to set a price point for the product and if the product is good enough, it will sell. It's market economics."

　　Fong also hinted that the Australian industry will look at tracking online sales, as well as brick and mortar sales, in the near future. He also went on to praise the Australian gaming community for the part it has played in the debate surrounding the introduction of an R18+ classification for video games in Australia.

　　"R18+ has been a big focus for the iGEA this year," Fong said. "It's a great example of the industry coming together and having one voice. The fact that the Australian Government had more respondents to the public consultation process than any other issue facing Australia is a great testament to the gaming community pulling together. It's important to have a consolidated approach. I think we're in a better position now than ever before on this issue: We have the support of the Gillard government, and while we still have to get consensus [from all states and territories], I'm hearing the right noises."

　　Check out the video below to see more comments on the game prices in Australia.

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