@mnzy said:
@shenstra:
http://en.wikipedia.org/wiki/History_of_video_game_consoles_%28seventh_generation%29#Sales_standingsLook at the numbers, 40mio 360 & PS3 in the US, 30mio in Europe (note that this is whole Europe, with about 700mio people, about twice as many as the US). Same with the Wii. Consoles are very much not as widespread in Europe. And yes, in the UK and Scandinavia that's different, UK has always had more consoles and Scandinavia has been more into gaming in general. Western and Southern Europe is ok and in Eastern Europe the PC dominates by far.
Nobody considers "all of Europe" as their market. They sell to Western Europe, roughly. That's where they make money. Whatever they sell in Eastern and Southern Europe is nice, perhaps even profitable, but no console manufacturer in their right mind considers Europe a market of 700 million people. You can roughly cut that in half (not literally, on a map, but just as a number), from a selling-games-for-profit point of view. I'm not putting anyone down or anything, but there's no way Nintendo, Sony or Microsoft keep their prices high because of all the cash they rake in in Poland.
Even putting that aside, the idea of keeping profit margins high in areas where your sales are low doesn't make much sense either. The only way to increase those sales numbers is to lower prices. If any country was (pre-crises) going to buy consoles at higher prices, it was the US. One of the reasons they don't lower prices in Europe in an attempt to increase sales, alongside the fact that they're selling gangbusters in Western Europe and can't lower prices in Eastern Europe without losing money in Western Europe, is that they can't risk a USD/Euro surge that would have them losing a lot of money all over Europe.
Basically all I'm saying is, they're not keeping prices high in Europe because hurr hurr let's milk European gamers. The price differences aren't as bad if you take sales taxes into consideration, as well as the general cost of living in some European countries. There are still an undeniable price differences between electronic entertainment in Europe and the US, but there are many reasons for those differences and it's more about economics than about differences between the actual markets. In fact, Europe and the US are more alike than ever before. We both have countries/states that are basically bankrupt, countries/states that are healthy, we both have problems with the underlying economy, we're both headed into pension crises, we've both been living beyond our means, we both have currencies that maybe aren't quite the bulwarks of financial stability and security that we thought they were, et cetera et cetera.
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