Wednesday, January 25, 2012

Are Retail Games Priced Unfairly In Malaysia? - Publishers Do Take Note


Pricing has always been the eternal question in Malaysia and around our region. Well, at least for video games(PC or console games for that matter). It is one that has divided so many gamers into those that buy original and to those that continue to buy pirated game(or instead drop into the slew of free to play games available now). Although it can be argued that even pirates(you have to be fair here) could afford original game, just not that too often. This isn't the main reason for piracy, just one that is often quoted. At least in Malaysia.

And this is a common argument amongst fellow Malaysians, and  one that I'm finding myself starting to fall into recently. Fact is, our purchasing power is just not equal to Singaporeans. Publisher often lump us Malaysians together with Singaporeans which often means we're getting local retail copies of games adjusted to the Singaporean cost of living. The Thais get further price drops, but we Malaysians get a minor discount, when you think about it, the cost of living and purchasing power parity of Malaysians with Singaporeans is just not the same or even fairly similar.

This dissonance(between purchasing power parity and price points) has been bothering me quite a bit. Don't get me wrong, I still purchase all my games and would never consider pirating any game. But don't publishers have a responsibility to be fair to regions they are marketing their games too? Shouldn't publishers be looking at Malaysia separately from Singapore and treat Malaysian consumers fairly, giving us a fairer localised pricing? It may be a logistical convenience to lump us together with Singapore, but is it fair?

Looking back at previous attempts at localised pricing, I remember a couple of years back, Supreme Commander had a localised version that was sold at retail for RM80. Taking into account EA, Activision(but not Blizzard games since that is a special circumstance that requires a separate retort of sorts) and Ubisoft game pricing here, most games retail at average RM170. The increased cost of everything basically has affected pricing a little here, EA games now average at RM159(when they used to go as low as RM139, which is now only available to their less 'bigger' titles).

Going back to the localised Supreme Commander case, it was reported that the publisher complained that the drop in price didn't see a double in sales... in essence, it wasn't worth it for them to drop it's price to RM80. It did not pay off in the end. This lead to a general discouraging effect that no publisher would ever consider putting out a localised copy cause it would not mean a double in sales.

Oh and don't even get me started on Blizzard and their distributors, IAH Games in Malaysia. A so called localised copy that meant we had to pay even more than the rest of the world for StarCraft II. Where's the logic in that?

My question to you all is this, will you support a publisher if they dropped the retail price of their game below RM100? Would you buy more games if they did drop the price below RM100?

10 comments:

  1. Generally anything priced above RM110 is down right rip off unless it's a limited edition then that would be a different story. I would gladly pay RM90~RM110 for an original game since that to me is a fair price, but nowadays games are just so pricey with figures looming closer and closer to the RM200s

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  2. but the thing is, with steam now a standard for every original gamer, i almost never buy a retail game unless its personal to me or if its a limited edition. (eg: BF3)

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  3. STEAM + sales == profit... nuff said...
    Big games can get a lot of % discount and we can even buy around ~RM30++ or even lower.... retail in Msia however set a little discount during sales for a lower of about 20 to 30 ringgit which will set the price of discounted games no very eagerly for people to purchase... RM 100++? that just to much for a Malaysian tbh....

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  4. a retail games in Msia should be special edition or included some memorable goodies @ least for people to really to buy the hard copies of it.

    If not people just tend to buy the normal edition online.

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  5. I've seen plenty of retails being sold here. And most of them are abseloutely overpriced. I myself am surprised on the pricing where as on steam I could personally get a game of the same title but with slightly less or even decent price than the retail version.

    Of course there is one game. ONE FREAKING GAME that I wanted to buy but after hearing the price of it just makes me sick. Starcraft 2. The price is completely INSANE for an average/malaysian gamers to buy it without considering other things that you can possibly get with that amount of money.

    Next, region locking of games are something I don't really enjoy with steam. There are plenty of titles on Steam that I would buy such as SSFIV - AE (That's super street fighter 4 arcade edition) , Batman Arkham City (Which is now region blocked before they were on sale last christmas) and Bulletstorm. Why is it so hard to let these games on sales? It's not like they're extremely violent or anything.

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  6. SupCom wasn't that great anyway.
    I just buy games on Steam.
    Also, that local Starcraft 2 pricing. Simply lol.

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  7. Good points. Retail has to move to something special with DD(digital distribution) offering plain vanilla versions. And yeah I know StarCraft II is the biggest rip off ever in terms of retail pricing. I still have never bought it. Only played it once when it was available as a free weekend.

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  8. Yes the pricing is horrendous in Malaysia. I think another THQ published game STALKER suffers the same fate as SupCom, even tho it priced even lower, at RM50. Yet another THQ effort is Company of Heroes gold pack selling at RM30 but it was sold more like a 'vintage' title.

    I guess since then every publishers use this metric to conclude game localization in Malaysia aint worth any effort at all.

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  9. BobtheKillerpenguin - OMGeekFebruary 1, 2012 at 2:25 PM

    I remember that many moons ago bright hub reported on the reason why games cost around USD60. I believe the article was out in 2008 or 2009. To summarize, it was highlighted that publishers only take 1-1.5% of the profit, distributors 1% and the licencing arm 4 or 5%. These numbers may be up and down by a single %, but I remember being a lil'surprised at the fact that these 3 parts of the supply chain took less than 6-8% of the profit. Clearly they work to pretty tight margins.

    The majority of the profit went to the usual suspects - marketing, design, manufacturing. One of the highest % groups were the retailers - netting around 20% of the profit.

    This was 2008/09 - so prices have probably risen even more since then. The reality is, as others have pointed out, the only option available may be Steam + sales.

    As to why people group Malaysia and Singapore together but give discounts to other regions? I would say it may be a lack of market awareness. They may not be doing the right research in understanding the average earning potential/living costs in some markets.

    If they were to do that, then maybe Malaysia would see a little discount. I think the profit hit would be at the development/design/art/marketing level, not the publisher/distributor/licensee level.

    Anyway, enough rambling.

    Good article as always!

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  10. I don't know why people just don't purchase their games online. It prevents all this mess

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