I’ve noticed a bit of a difference between prices of apps and music between the Australian iTunes store and the US iTunes store. Usually it’s a small difference… nothing to really be concerned about.
This morning I was looking for the Boggle game for iPad and noticed a massive difference between the two stores.
The Australian store has the app for sale for $2.99 and the US store has the app available for purchase for $0.99. Why are the prices so different? What’s the difference between selling in the Austalian store and the US store? Is there a need to increase your prices by 300% in the international markets? Maybe Australians are big downloaders of the game and Electronic Arts are wanting to cash in on that demand?
The US version advertises in-app purchases and the Australian version of the app not showing this. Maybe Electronic Arts is charging full price for the app in the Australian version and not giving us the chance to purchase a cheaper version.
In the About section of the Electronic Arts website you are greeted with the quote ‘We unite the world through play’. On the same page you can read the following ‘In fiscal 2013, EA posted GAAP net revenue of $3.8 billion.’ Does most of this profit come from increasing the international prices of apps and games because most of the global audience can’t see how much they are sold for in the US?
It would be interesting to have a level playing field in the global pricing for apps and games. Some kind of price comparison site or easy access to prices around this world. Maybe this already exists?
We have flattened the world and removed expensive shipping costs from our downloaded products. It seems some companies are still pricing their products as though they make the 6 week journey from one side of the globe to the other.
Maybe the Boggle for iPad app when downloaded in the Australian iTunes store is packaged up in Los Angeles, then shipped to the International Parcel Distribution Centre before it’s placed in a shipping container bound for Sydney via Singapore.