UK Game Prices Could Rise in New Year

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UK Game Prices Could Rise in New Year

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Distributors aren't budging on prices, so retailers may pass the cost of an upcoming tax increase onto British consumers.

UK gamers could be getting a rather unwelcome late Christmas gift this year, in the form of higher prices. Value Added Tax, or VAT, will increase from 17.5% to 20% on January 1st, and despite calls from the retail sector to lower trade prices, one platform holder has ordered its official distributor to freeze its prices at current levels, with another apparently planning to do the same shortly.

If the prices remain unchanged, retailers essentially have two options: either they absorb the tax increase themselves and cut into their profit margins, or they fall in step with distributors and pass the increase on to consumers. Obviously, neither is ideal, and could be especially damaging to the smaller, independent retailers who are already struggling to compete with supermarkets and retail chains. The increase in tax will mean that game prices will increase by £1 and console prices will increase by £5 - £6.

Higher prices may also affect what stock retailers carry. One retailer suggested that consoles would be harder to sell at the higher prices, and the ratio of high margin to low margin stock would change to reflect the new retail situation. Pre-owed sales, already a significant source of revenue for retailers, are likely to take on even greater importance, being both cheaper and more profitable than new stock.

Source: MCV

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NOOOOO! Not £1!

These price increases are just getting absolutely ridiculous now...

At least you guys will have plenty of time to play them now that no one can afford to go to school.

HankMan:
At least you guys will have plenty of time to play them now that no one can afford to go to school.

My thoughts exactly.

OMG £1!

RISE! RISE!

Make my monster grow!

BWA HA HA!

I'm totally responsible for this, as I am an evil American.

OT: *insert Pound symbol here*1 isn't too bad, at least. Damn taxes.

And this is why i buy online. Play and Amazon, i salute you!

Onyx Oblivion:
RISE! RISE!

Make my monster grow!

BWA HA HA!

I'm totally responsible for this, as I am an evil American.

You guys have more income tax to deal with so it pretty much evens out in the end.

Well GAME gives me huge discounts anyway... possibly because I know almost all the people who work there by name, possibly because I have about 3 discount cards.

Who knows?

Point is, this won't affect me much.

They'll just use this as an excuse to raise game prices by £5 and make an extra £4 profit. The 99p price is already arbitrary and based on psychology rather than profit margins. The same goes for consoles. The psychological difference between £199 and £205 is more important to them, otherwise they'd charge irregular prices already

ONE POUND?!

You fucking monsters! MONSTERS!

I was worried that the increase would be like £10, BUT ONE POUND?!

In all fairness, an extra pound on games is hardly anything, and especialy with all the deals on new games, 2 for £20 deals and pre-owned sales no one will even notice.

BrotherRool:
They'll just use this as an excuse to raise game prices by £5 and make an extra £4 profit. The 99p price is already arbitrary and based on psychology rather than profit margins. The same goes for consoles. The psychological difference between £199 and £205 is more important to them, otherwise they'd charge irregular prices already

If they raise them at all. The thing about our VAT is it's inclusive and retailers need to stay competitive. I'm willing to bet that the increase will affect businesses far more than consumers.

I can see alot of game companies using this as a reason to raise prices to £55+ for big console titles and probably more for actual consoles(no doubt the £199 xbox 360 slim will become closer to £209.99 or something similar)

As mentioned earlier though thank god for amazon and play

I don't remember the last time I went into a GAME or HMV. Sucks for the general public though.

Don't half the time they just set things at a mutiple of £5 and then take off a penny? If so this'll make prices look abit wierd.

Well the price increase shouldn't even be £1 anyway for a £40 game. It should be around 71p so they're just using this to increase the margins on games!

More great news for the British consumer, they prices will not rise by a pound they will rise by £10 because that is the nature of market forces. They have a mandate to raise the cost and get away with it.

Their hands are clearly tied by forces more powerful than they are!

C95J:
NOOOOO! Not £1!

These price increases are just getting absolutely ridiculous now...

You say that, but it wouldn't surprise me if some stores take advantage of that and put game prices up by a little more.

damn that has to suck for you Euro gamers getting taxes increased around the holidays.

How about, you don't change the cost and understand what a fair amount of money is you greedy bastards.

Banks need bailouts? Here ya go...
People need money? Go duck yourselves. Tax increase incoming!

Way to go, governments. Way to go.

Onyx Oblivion:

OT: *insert Euro symbol here*1 isn't too bad, at least. Damn taxes.

I hate to do this, but if you meant the £ sign, that is not Euro.

jamez525:

Onyx Oblivion:

OT: *insert Pound symbol here*1 isn't too bad, at least. Damn taxes.

I hate to do this, but if you meant the £ sign, that is not Euro.

I fixed it.

Onyx Oblivion:

jamez525:

Onyx Oblivion:

OT: *insert Pound symbol here*1 isn't too bad, at least. Damn taxes.

I hate to do this, but if you meant the £ sign, that is not Euro.

I fixed it.

Just so you know, I wasn't trying to be a dick or anything, that just would have been in the back of my mind for the next 10 minutes if I hadn't mentioned it.

20% Tax is ridiculous enough.

Will be very interesting to see if they end up charging £40.99 for a brand new game. Hopefully this isn't the start of another trend in price increases 'a la' back in the SNES/Mega Drive days when Super Street Fighter 2 was £69.99. I actually paid that too. What a mug I was!

Christ a decent loaf of bread is £1.30 now. Not like Zimbabwe ridiculous though.

Of course, when VAT was cut we didn't see an decrease in game prices, did we? >=\

(Quite the opposite in fact! I think it was during the temporary VAT cut that I saw some of the first games retailing at the £40 mark! D= )

Way to combat Used Game sales. Raise the price of your NEW games so ppl have even MORE incentive to buy used ('._.)b

As GAME UKs online prices are generally rounded to the nearest 5 pound, I'd expect them to see if they can absorb the cost and hope not having a sudden increase in price encourages more customers.

Though it all depends on how much of a margin they're working with. They might just ramp everything up 5 pounds keep their prices neat.

I'm thankful for their price guarentee for my Crysis 2 preorder however, I won't pay more either way.

BTW, am in Australia, I just buy from the UK when I want an actual copy of a game, or the preorder is slow coming up on steam. Or the damn publisher has regionalised the price.

Well, this confirms it. I'm never going back to retail. I was beginning to rely on Steam anyway. I love having a physical copy of a game, but if prices are rising... I'm sticking to the internet.

If you buy from retail stores you are already getting fleeced, when will people stop throwing money away in shops when we have the INTERNET, where prices are cheap, there are no queues and you don't have to put up with a spotty teenager judging your purchase

That's not good! If the poms get a price hike then Australia will be effected by it too and we'll get a price hike since ours games are from PAL region as well. We already pay AU$99.95-119.95 a 1 GBP raise could see me paying AU$104.95-124.95 or even more.

Sucks to be PAL!

Ranooth:
And this is why i buy online. Play and Amazon, i salute you!

Same, when I see new titles in stores for £45 and online for £35 where to purchase them from is a no brainer.

DTWolfwood:
Way to combat Used Game sales. Raise the price of your NEW games so ppl have even MORE incentive to buy used ('._.)b

Its the government who raised taxes, not the industry. The government don't give a give a damn about the games industry because its worth 1/7 of the Women's shoe industry and with the differential why would it.

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