Home Gaming Why are local game prices so insanely high?

Why are local game prices so insanely high?

2 min read
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insanepriceMuch has been said on social media recently about how insanely high our local prices for video games have become and this morning I received an email asking us to investigate this.

In essence our reader want’s us to name and shame whoever is responsible for this outrage

“If $60, why is that the US RRP for new gen games are the same ($60) but here in SA the price went up by default to around R899???

Not sure if I have all my facts straight, BUT if I do, is there any chance you guys can do some digging and write an article about this, naming and shaming every SOB responsible?”

Now it’s a totally fair request and to be clear this reader isn’t the only one asking these questions after seeing RRP’s (Recommend Retail Price) of R899 in store.

So first thing’s first, we do not follow American Dollar pricing as we fall under the European market and more specifically the UK market – where there is often actually a difference between the cost of new gen and old gen games.

The average price for a next gen game in the UK is between £45 and £50 depending on the game. Which in turn works out to around R850 to R920 as a RRP. The standard RRP at the moment in South Africa is between R799 and R899 but then retailers will usually put a discount on that so for example Destiny on PS4 currently has an RRP of R899 but kalahari are offering it on pre-order for R699.

Drive Club also has a R899 RRP but they are offering it for R749.

If we compare these what price we can currently order these two games for in the US, UK and Germany (using Amazon) we get the following.

Game South Africa UK USA Germany
Destiny (PS4) R699 £45 (R815) $59.96 (R637 + tax) €69.99 (R1013)
Drive Club (PS4) R749 £49.85 (R903) $59.96 (R637 + tax) €69.90 (R1012)

So in reality we are cheaper than most places at the moment and while it has unfortunately started to become the norm for South African gamers to whine about ripped off the reality is quite far from that.

All the local distributors are companies that are obviously looking to make a profit but they also know that we, the gamers, aren’t made of money so it is a fine balancing act to try and get all the games out while still remaining profitable and making sales.

I have no great insight into the local pricing plans but I for one can’t see the prices staying as low as they are and I have a horrible feeling that the RRP will hit R999 before the year is out.

And who do I think is the SOB responsible for this?

Jacob Zuma

As the current president of the country I place the blame on Jacob Zuma entirely who has shown no real ability to steady the economy and to stop our currency’s downward spiral.

But for now at least try and be comfortable in the knowledge that we aren’t being ripped off by any local company and in fact are right now getting a better deal than the British or the Germans.

Last Updated: June 27, 2014

89 Comments

  1. Praise Lord GabeN

    June 27, 2014 at 11:06

    If there was any doubt that PC gaming is cheaper than console gaming, I think we can put it to rest now 😉
    Praise GabeN!

    Reply

    • Hammersteyn

      June 27, 2014 at 11:06

      No there never was any doubt.

      Reply

      • Alien Emperor Trevor

        June 27, 2014 at 11:09

        Now I just need to play them. But who has the time when you spend all your time buying them!

        Reply

        • Alien Emperor Trevor

          June 27, 2014 at 11:10

          Speaking of which, let’s go see what the new flash sales are.

          Reply

    • Liquid Kaz (Umar)

      June 27, 2014 at 11:17

      What does Gaben have to do with anything though? PC games are cheaper because there is no dedictaed platform that they need to pay money to. Releasing on console means you have to pay MS or Sony a piece as well.

      Reply

      • Alien Emperor Trevor

        June 27, 2014 at 11:18

        Inderdaad.

        Reply

      • Viking Of GabeN

        June 27, 2014 at 11:24

        Truth, It’s the Licensing fee, which is why it’s usually $60 console ; $50 PC… (except on Steam, because reasons.)

        Reply

      • Praise Lord GabeN

        June 27, 2014 at 11:46

        What does GabeN have to do with anything? Everything! Those who follows his teachings closely will know he is the sole savior of PC gaming.

        Reply

    • ActionJackson

      June 27, 2014 at 11:24

      Why do digital stores like Steam and Origin cost more than the local online stores that have physical copies to store and ship?

      Reply

      • Praise Lord GabeN

        June 27, 2014 at 11:39

        Actually, overseas PC AAA games cost the same as Console AAA titles hence they both cost $60 while in the good R of SA PC games are cheaper hence you can get physical copies for cheaper.

        I had a look at the prices for Watch_Dogs on steam and was quite suprised (not really) that it’s on special:

        http://store.steampowered.com/app/243470/

        Reply

    • Dutch Matrix

      June 27, 2014 at 11:38

      I think you need to look up from kissing Lord GabeN’s flabby ass now and then. Then you would realize that for a good few years now console games are more expensive than PC games at release time.

      Reply

      • Praise Lord GabeN

        June 27, 2014 at 11:42

        “…console games are more expensive than PC games forever.”
        I fixed that for you.

        Reply

    • Martin du preez (D4RKL1NGza)

      June 27, 2014 at 11:44

      Enjoy your rock simulator and waiting for that pick & pay welfare steam sale to throw out those 2005 baked beans (games) at a discount. Sometimes I wonder who the real peasants are…

      Reply

      • Praise Lord GabeN

        June 27, 2014 at 11:52

        #peasantlogic

        Reply

      • zeemonkeyman

        June 27, 2014 at 11:54

        Umm I think you should do your research before you lay absurd claims, type in steam and have a look at the games on sale right now and I think you’ll find plenty of them are only 6 to 12 months old.

        Reply

        • Kensei Seraph

          June 27, 2014 at 12:28

          Some of them aren’t even 1 month old yet.

          Reply

          • zeemonkeyman

            June 27, 2014 at 12:41

            Exactly

      • Sir Rants A Lot Llew. Jelly!!!

        June 27, 2014 at 12:15

        Even full retail price off the shelf PC games are cheaper… #Justsaying

        Reply

  2. Norm

    June 27, 2014 at 11:09

    Those German prices….eish!

    Reply

    • Hammersteyn

      June 27, 2014 at 11:20

      I did nazi them paying that much HAI!

      Reply

      • SlasherZA

        June 27, 2014 at 11:27

        If I see a game cost that much in a store, I’d gestapo right outta there!

        Reply

        • Alien Emperor Trevor

          June 27, 2014 at 11:30

          Why? If it’s good for the goose-stepper it should be good for the gander.

          Reply

  3. Hammersteyn

    June 27, 2014 at 11:10

    I dunno what other people are doing on the consoles but on a long enough time scale you can budget for it by buying one game less. Buying six games for R700 amounts to R4200 buying five games for R900 amounts to R4500. That’s one (hopefully EA) game less. Factor in trade ins and it’s not all doom and gloom. Plus Destiny was R650 on the PS4.

    Reply

  4. oVg FX

    June 27, 2014 at 11:14

    Ya, and people wonder why we take our next purchase so seriously?
    Why we bitch and shout when the game does not meet our expectations after dropping a tenth of our earnings on a TV Game.
    If games were cheap as chips we would not be causing a stink about Watch Dogs not having PC graphics. We would just move on.

    Its cheaper making kit cars.

    Reply

    • Alien Emperor Trevor

      June 27, 2014 at 11:19

      It’s actually 20% off on Steam right now haha. I think ol’ Ubi are feeling the pinch for it to even be part of the summer sale so soon after launch.

      Reply

      • Rince&Shitity

        June 27, 2014 at 11:25

        Wow, already? And they said this game has made them the most, evaz.

        Reply

        • Alien Emperor Trevor

          June 27, 2014 at 11:29

          It can be yours for the low low price of 48 dorrar! Not including season pass.

          Reply

          • Rince&Shitity

            June 27, 2014 at 11:29

            BWAHAHHA! 🙂

      • oVg FX

        June 27, 2014 at 11:28

        They don’t care. It broke all Ubisoft records. Besides, I think gamers are clicking about the fact that Watchdogs has 0 replay value.

        Reply

    • Dutch Matrix

      June 27, 2014 at 11:36

      Ja swaer!

      Reply

    • Matthew Holliday

      June 27, 2014 at 14:10

      international markets also have a solid resale market, saw a pre-owned watch dogs going for 24 pounds in the UK.
      over here, even cash crusaders try resell it, without being able to use the DLC, for near to retail price.

      so yeah, would be nice if would could just forget and not have it affect us.

      Reply

  5. Hammersteyn

    June 27, 2014 at 11:15

    If only the masses played games like us, Zuma would have been impeached by now.

    Reply

    • Milesh Bhana

      June 27, 2014 at 11:22

      the masses use electricity (going up again), they drive cars (eToll), and Zuma still won the elections. That’s a whole other problem 😛

      Love the sentiment though.

      Reply

      • Wraith

        June 27, 2014 at 11:36

        But the majority don’t pay for that electricity consumption. Heck we even distribute electricity to our neighbouring countries despite not having enough capacity for ourselves! 🙁

        Reply

      • Weanerdog

        June 27, 2014 at 11:37

        Did you know that if you add the people registered and did not vote to those eligible to register and did not, you would have more votes than the ANC got in the previous election. Harness all those votes and you can run the country.

        Reply

  6. Viking Of GabeN

    June 27, 2014 at 11:22

    The Problem is the average Salary of a gamer in SA vs other countries, It’s no secret that Factoring Cost of Living etc, games “Feel” overpriced here…. But that’s the economy’s fault.

    Reply

    • Weanerdog

      June 27, 2014 at 11:38

      This is very true, at minimum wage over seas you could save for a game in 4 – 6 hours, here its like 4 weeks.

      Reply

  7. Rince&Shitity

    June 27, 2014 at 11:25

    Crap, there is another NEXT gen?! FFS! I can’t keep up!

    Reply

  8. Rince&Shitity

    June 27, 2014 at 11:26

    Gavin, any chance of asking your mate at Megarom whether he knows anything?

    Reply

  9. Weanerdog

    June 27, 2014 at 11:32

    Had the pleasure of attending an investment conference earlier this week. A gent from Investec who was giving the economic overview stated that they were of the opinion that the rand won’t get too much weaker at the moment so that is at least some good news.

    Reply

    • Jonah Cash

      June 27, 2014 at 11:34

      Glad to hear that, but it shouldn’t just stabilise it should go back down… But yeah that would mean someone somewhere will have to do some work and decent planning…. And I don’t see that happening!!

      Reply

      • Weanerdog

        June 27, 2014 at 11:48

        Yip going to take some time as all emerging markets getting hammered, we just have the added disadvantage of a non-coherent economic policy.

        Reply

  10. Rince&Shitity

    June 27, 2014 at 11:41

    Said in movie voice: BVVVVVV Not content with only rocking the MSSA boat, Gavin Manion takes on the Big Cheese BVVVVVVV (Image of Gavin) “I will take you all with me HAHAHAHA” A man on a mission BVVVVVV (Car ramping over bridge) “You can’t escape me!” BVVVVVV He will stop at nothing BVVVVVV to get his quarry BVVVVVV (Explosion). “Lazygamer, the attack of Gavin’s daughters PTIV Coming to cinemas near you.

    Reply

    • Alien Emperor Trevor

      June 27, 2014 at 11:41

      Crap trailer, not enough slow-mo’s.

      Reply

      • Rince&Shitity

        June 27, 2014 at 11:43

        But, the first scene is the end of the movie! That has to count for something?

        Reply

        • Alien Emperor Trevor

          June 27, 2014 at 11:59

          That’s a good point. Now I don’t have to waste my time going to watch the movie!

          Reply

          • Rince&Shitity

            June 27, 2014 at 12:08

            That’s rather a selfish attitude. 0.1% of these profits were going to Gavin’s court case.

          • Alien Emperor Trevor

            June 27, 2014 at 12:15

            I don’t think 1 trillion zim dollars would really help much.

    • Matthew Holliday

      June 27, 2014 at 13:58

      needs more wubs

      Reply

  11. Guest

    June 27, 2014 at 11:43

    Too Damn Expensive

    Reply

  12. Lourens Jordaan

    June 27, 2014 at 11:47

    Good article Gavin! It kinda puts things in perspective. Could you maybe do another one for why AAA titles are priced so high? Is a 6-7 hour long campaign and three hours of mediocre multiplayer enough to justify a R800 pricetag?

    Reply

    • Gavin Mannion

      June 27, 2014 at 12:08

      *clever marketing*

      Reply

      • Hendrik

        June 27, 2014 at 14:41

        Sorry, do not know if my comment will be noticed, so I copy it here:

        Lazy Gamer, thanks for clearing that up. However, please do not drag politics onto this site. (btw, I agree with the JZ thing) But i want to read that shit elsewhere. I come to Lazy Gamer to forget about the shit that is going on in SA, and want to concentrate on the good. This website is the only website where there is no political mud slinging etc. I really want to keep it that way. – One of your biggest fans

        Reply

  13. Mabenito

    June 27, 2014 at 11:50

    Gaming is not cheap. Especially console. You need to manage the addiction or suffer the withdrawals. But there’s an alternative… and it’s called “The Master Race”.

    Reply

  14. Sir Rants A Lot Llew. Jelly!!!

    June 27, 2014 at 11:50

    Thanks for that Gavin.

    But to be fair one really has to work out the cost as a % vs average income.

    So if we take the average South African income at roughly R14000p/m then at a RRP of R899 it is: 6.4% of the average income.

    If we take the average income for a British citizen (Since that’s where we fall under) which is £2200p/m and a RRP of £50 then that gives you 2.27%.

    So in South Africa currently you pay 6% of the countries average salary to get a game at RRP whereas you pay only 2% in Britain.

    BUT, distributors give discounts I hear you say. So right. Let’s do this on an actual case.

    Drive Club.

    R749 against an average income of R14000 gives us: 5.35% of our average income.
    £49.85 against an average income of £2200 gives us: 2.26%

    So yeah, we can’t say our games are “cheaper” than in other regions because the effect on our wallets are far more hard hitting than our overseas counterparts. One can’t do a direct convert between currencies without taking in to effect how much ones income is VS the amount removed.

    *disclaimer: I did quick google searches to get country avg incomes so I may not be 100% spot on, but the idea is there

    Reply

    • Alien Emperor Trevor

      June 27, 2014 at 12:01

      It only looks like 1 upvote. It’s actually millions.

      Reply

      • Sir Rants A Lot Llew. Jelly!!!

        June 27, 2014 at 12:02

        Heh. Thanks Trev 🙂 I think I was a bit late to the comments so this one will probably be mostly overlooked 🙁

        Reply

        • CAE9872

          June 27, 2014 at 12:28

          Good analysis – so I will give you two upvotes BUT your analysis did not go into the cost of living and whether making a straight forward comparison is comparable! Geo Politics, Nuclear Fision, Enviro Mentals, etc all impact! So a downvote…

          But you nett a cool 1 upvote!

          Reply

          • Sir Rants A Lot Llew. Jelly!!!

            June 27, 2014 at 12:31

            Hehehe. Thanks. I wanted to go in to more detail but that would require a full thesis paper I think.

            A full study would be great though. One that takes in to account cost of living, % of income, etc. Would be awesome if someone with some time and more of a mathematical mind and social understanding would do one.

          • Matthew Holliday

            June 27, 2014 at 13:52

            rent and amenities in the centre of london, a small but nice bachelor pad costs around 900 pounds a month.
            clever cooking works out to about 3.50 a meal, so food is roughly 300 a month.
            basic travelling on the tube costs around 50 pounds a month.

            so, with other stuff, say basic living costs are around 1500 pounds a
            month, in the centre of london, which is more expensive than most
            places.

            insurance is pretty expensive, but not sure on specifics.
            and tech stuff like TVs/PCs and consoles are pretty affordable. 340 pounds for a ps4.
            10mb uncapped internet comes basic with most flats in london.

            2200 pounds a month sounds pretty accurate for an average.
            have a few friends over there.
            ones a floor manager at mcdonalds in caimbridge, so more than minimum wage, but nothing crazy, and can afford to live on his own, drive his own car, buy consoles and games to his hearts content etc.
            others are waiters/waitresses at high end hotels, often finishing shifts with 100 pounds in tips.

          • Sir Rants A Lot Llew. Jelly!!!

            June 27, 2014 at 13:55

            Very scary to think their lowest wage bracket equals our middle wage bracket…. Anyway, the point is games aren’t expensive in SA. As is pointed out in the articles our games (directly converted) are cheaper than overseas in the UK. Our economy is just crap.
            If I lived in the UK I’d purchase my games from SA to save a bit of bucks. Heh

          • Matthew Holliday

            June 27, 2014 at 13:57

            Im hunting for correspondance jobs 😛
            live in SA, earn pounds.
            trying to convince my friend to let me run the Mcdonalds drive through via skype from my bedroom.

          • Sir Rants A Lot Llew. Jelly!!!

            June 27, 2014 at 13:57

            Loooooooool

    • Matthew Holliday

      June 27, 2014 at 13:33

      factor in that most gamers who buy AAA games are 18-25
      with the UKs minimum wage of 6.38pounds(going up to 6.50 in september) 1000 a month for a mcdonalds cashier.
      and the average decent income of a south african student, fresh out of university, is R8000 a month.

      Reply

      • Sir Rants A Lot Llew. Jelly!!!

        June 27, 2014 at 13:51

        Naturally there are other factors yes. Also R8000 out of varsity is shooting high. Most fresh out of varsity only get about R6k.

        But let’s take your figures:

        R749 against an average income of R8000 for fresh out of varsity gives us: 9.36%

        £49.85 against an average income of £1000 gives us: 4.98%

        That means that the lowest wage pay in the UK spends, percentage wise, the same for a game as someone working for middle wage in SA (The R14k bracket).

        Scary thoughts…..

        Reply

        • Matthew Holliday

          June 27, 2014 at 13:53

          yeah, i was shooting a bit high, responded to your other post with moar numbers

          Reply

  15. zeemonkeyman

    June 27, 2014 at 11:51

    Us Australians pay more than just about anyone! $120 for a brand new game anyone? That said if you buy most games on steam or wait six months for store specials you’ll be fine. Our dollar is nearly identical to the U.S by the way.

    Reply

  16. Johann

    June 27, 2014 at 12:02

    It’s all well and good that UK pays more than us if you do a direct rand to pound conversion. But you must also factor in that the average UK salaries are much better than the average South African salaries.

    Reply

    • Gavin Mannion

      June 27, 2014 at 12:07

      That’s an entirely different debate.. but either way you have to factor in that the publisher is not responsible for our salaries, They can’t sell them for R400 here and R900 in teh UK just because they are richer.. people wouldn’t accept it

      Reply

  17. Ross Woofels Mason

    June 27, 2014 at 12:11

    I just wish digital prices would stop getting shafted because of physical release titles. Not all games but most games retail and sell digitally at the exact same price which is a load of crap.

    Digital you are not getting any physical media (no box, no disc, no manual, no printing at all), the companies do not need to go through even half the trouble of shipping and distribution yet we get shafted for the same price?

    Don’t get me wrong I far prefer digital releases to physical media cant remember the last time I bought a physical copy of anything, just annoyed it get priced at the same as physical media.

    Reply

    • CAE9872

      June 27, 2014 at 12:12

      Actually console prices are usually higher than retail – because both MS and Sony don’t want to upset the retailers that sell the hardware.

      Reply

      • Gavin Mannion

        June 27, 2014 at 12:13

        was just posting that.. but yes that is exactly the reason.. PSPGo anyone?

        Reply

        • Ross Woofels Mason

          June 27, 2014 at 12:15

          Can’t say I’ve found a digital release that’s been priced higher yet but maybe that’s just the type of games I play.

          I can get not wanting to upset retail but still a load of crap for the consumer.

          Reply

          • Gavin Mannion

            June 27, 2014 at 12:18

            I half agree… it sucks that you pay more but if they didn’t manage the prices then retail would collapse which would take local distribution with it and local marketing.. which in the end will severely disrupt the ability of gamers in emerging markets to play games

          • CAE9872

            June 27, 2014 at 12:20

            I always enjoyed economics at varsity. It taught you to realise that the world operates in an equilibrium – disrupt one aspect and the whole thing tumbles around you if you not careful…so just “dropping prices” will lead to many other problems we haven’t considered even.

          • Ross Woofels Mason

            June 27, 2014 at 12:23

            Yeah I can agree with that, it’s an annoying situation but what you state is true.

        • CAE9872

          June 27, 2014 at 12:22

          hahaha…that thing was so badly marketed and priced! I remember seeing one and gave it two thoughts…walked away!

          Reply

  18. CAE9872

    June 27, 2014 at 12:11

    Although I dislike the prices of games locally, it is easy to work out the UK-SA price! I am often on my Live UK account, or looking at eBay UK. In in those terms you always get back to local pricing being very competitive to overseas markets.

    And doing a cost of living scenario is fraught with danger! It would be argued that just getting through the day for most is a bit more important that the price of high luxury item. But that is a debate for an entirely different day.

    To be fair to local retailers I think they are trying very hard to minimise the current forex movements. In one year (I know I was doing it for a client yesterday) the average to UK pound went from 13.3 or so to now 18.0 – that is almost a 50% increase in local foreign purchases.

    Reply

    • Sir Rants A Lot Llew. Jelly!!!

      June 27, 2014 at 12:28

      Definately understand that. It’s not the retailers fault at all. Let’s be very honest there. It’s the economy’s fault and resides 100% at the feet of the people who affect our economy.

      However, unfortunately because our economy is what it is, even when our games are cheaper than our overseas counterparts, the effect on our wallets are still worse than overseas. Again, the retailers do a great job at trying to reduce this effect but unfortunately our economy doesn’t lend itself to this being very effective and at the end of the day retailers lose out because in SA most people probably wait for prices to drop due to age or sales before purchasing.

      Reply

      • Matthew Holliday

        June 27, 2014 at 13:25

        Having the same thoughts.

        South African buying power doesnt compare to international.
        minimum UK wage is 6.38 an hour for over 21s. 1000 pounds a month off basic shifts at a mcdonalds.
        thats R18 000 a month basically, on minimum wage.

        even if living costs are higher over there, the savings made on other expenses makes up for it.

        it hits our wallets much harder than theirs.

        Reply

    • Matthew Holliday

      June 27, 2014 at 13:16

      got back from the UK a few days ago.
      R18 to the pound made it a very scary place.

      although, even with the exchange rate, stuff like the PS4 still worked out to an almost identical price.

      Reply

  19. Milesh Bhana

    June 27, 2014 at 13:00

    One thing that can be said for the new-generation is that there seems to be a big focus on open-world, sandbox or RPG type titles.

    So sure, it’s an expensive hobby, with the AAA titles are less likely to be those under 8 hour corridor shooter rip-offs.

    It does feel like we’ll be playing less games, for longer. (assuming that we actually finish the campaigns on these). Those that aren’t sandbox-type, tend to have a heavy MP focus (eg. Destiny and Driveclub), so hopefully those will also ensure many hours.

    As long as the games are good enough to make me want to spend 30+ hours in them instead of a straight main story-only 10-12 hour run, then I guess i’ll be ok with that.

    Reply

  20. Matthew Holliday

    June 27, 2014 at 13:14

    Im in agreement about whos responsible.
    just came back from the UK, and at R18 to the pound, it was a scary place.

    Reply

  21. MakeItLegal

    June 27, 2014 at 13:32

    Yea , well I skip day one purchases , I keep my budget to 400 a brand new game

    Reply

  22. Deano

    June 27, 2014 at 13:37

    After arriving in Dubai thinking I was going to be able to pick up games at a much better rate, reality soon kicked in after walking into shop after shop to find that prices where more expensive once converted than the same game in SA. So we are pretty lucky this side, except for the fact that our currency is’nt worth 2 beans worldwide.

    The only thing cheaper once converted to rands in Dubai was the actual PS4 console which I got with 2 games for +- R5500.

    So its more the fact that based on what they earn overseas that gaming is far more affordable.
    But for the average Joe in SA it takes a bigger cut of his monthly pay to buy a game here.

    Reply

  23. Hendrik

    June 27, 2014 at 14:38

    Lazy Gamer, thanks for clearing that up. However, please do not drag politics onto this site. (btw, I agree with the JZ thing) But i want to read that shit elsewhere. I come to Lazy Gamer to forget about the shit that is going on in SA, and want to concentrate on the good. This website is the only website where there is no political mud slinging etc. I really want to keep it that way. – One of your biggest fans

    Reply

  24. Reaver

    June 27, 2014 at 15:21

    Thanks for the article Gavin.

    Though it kinda ‘feels’ unfair that the US don’t really feel a price increase (still pay $60) while we do.

    Guess that’s our crappy currency’s fault then…

    Reply

  25. Stiggie

    June 27, 2014 at 18:46

    Problem I’m seen at my shop is that most want trades only because new games are to expensive, but when they go to the trades they complain that it’s only old games. where are the new title trades. Wwwweeell my chump if people don’t buy new releases you aint going to see new trades.
    If you had a true passion for gaming you’d give up the drinking and smoking because that eats up more of your money then you could afford the new games and can stop complaining. People brag about spending R500 and more on a night out of pissing it up and scream and shout about spending R700 on a game that could give them far more hours of entertainment.

    Reply

  26. Jason

    June 30, 2014 at 12:44

    Dear Lazygamer.

    You are making a mistake with your calculations, before you dismiss me. Hear me out.

    It is a common misconception by South Africans to always compare the cost of a product by taking it’s RRP in pounds / euro / dollars and then straight up multiplying the current exchange rate.

    Then either complain that we are being ripped off, or, that we are scoring when comparing to our overseas counterparts.

    What should be done instead, is to take the cost of the product and calculate the PERCENTAGE it subtracts from your _disposable_ income.

    Taking “Destiny (PS4)” as an example:

    1. R699 is 2.75% of my South African disposable income.

    2. £45 (If I was earning a UK salary with current IT skills), is 1.35% of disposable income.

    While £45 x South African exchange rate (R813.29) may seem very high when you look at it in “South African Rands”, it is still cheaper for our UK brothers to buy the same game, than it is for us.

    Most of our retailers slap on a 14% – 17% markup on the games we purchase.

    Reply

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