Commentary on Euro Pricing Flamefest

[neural]

If it really is down to shipping and VAT why haven't EA\Harmonix come out and said this is how it breaks down heres our profit margin?

IMHO it suffices to say: If it really is down to shipping and VAT, how did Activision manage to get lower prices on their game+guitar bundle compared to buying the same things for Rock Band? Yes, I agree it's simply damage control.

[hip]

I don't know if someone already brought up this argument, but let's do a little comparison (source Play.com):

Guitar Hero III with wireless Guitar: £64.99
Rock Band with wireless Guitar: £39.99+59.99=£99.98

So, can somoeone explain us why Activision managed to do this "magic", and EA/Harmonix can't? Activision should really strongly advertise their lower price when GH: Aerosmith will come out.

However, I'm going to import guitar and drums from the States while getting the PAL game, so problem solved for me.

You forgot to mention that the GH guitar is better quality too.
man, Activision must really like losing money.

[CM_Drunk]

I'm sorry but if Harmonix themselves can't come out with a straight answer it's damage control. If it really is down to shipping and VAT why haven't EA\Harmonix come out and said this is how it breaks down heres our profit margin? That would end all of this now wouldn't it but they won't so what have they got to hide?

A very good question, indeed. My only guesses to this, is that the OP has mentioned that he cannot, will not and should not disclose their exact costs.
Not many (if any) companies will break down their overhead to profit ratios.

I ventured a guess that maybe, the hightnened potential costs of RMA'ing equipment might factor into it, and again im not saying thats fair to the European consumer, and I dont even know if im right.

My only point in posting in a thread which doesnt affect me AT ALL other then liking playing video games with people across the world, is that it makes no sense for them to overcharge you just because they feel like it. Or because they belive you will just pay up naively (is that a word?) and not ask questions.

With a community like this, where even FREE DLC given away results in ridiculous backlash, they must have realized that this price was going to piss people off. They must also realize that their only real competition in this genre is half the price. And if they could justifiably get it to you at a cheaper cost, they would as it results in more units sold.

[PinkFloyd]

As I said before, I dont think they are charging this much expecting all of it to be profit. Perhaps the thought of RMA'ing all sorts of instruments internationally has them concerned, and raised the price as to not lose money on the warranty end. That might be the only thing I think HMXGlo might have withheld in his statement.

Again, I really wish people wouldnt put words in my post I do not type. I honestly, as an American have NO clue what Europeans pay for stuff vs what we do.

All im saying, is that its absolutely understandable to be pissed off over something youve been waiting on for a long time being radically priced. I would be too. But as unfair as the reasons why might be, I assure you thats its NOT because a company feels they can make an easy buck off of your market. Their has got to be a reason why, and its not to screw over European gamers.

You may have a point there, however, they have yet to come up with a good reason, because the reasons given so far are utter bull****. There's no way in hell someone can defend a retailprice that's higher than individual importprice.

[iapetus]

Just got a quote on a 40'HC container - that will hold 450 copies of RB - worked out about £4 a copy......

Oops. There goes that excuse.

[CM_Drunk]

And putting up excuses like the transport costs, when I can order the game from the U.S. and pay much less shipping included, does only add to the anger. So, couriers like UPS/FedEx are cheaper than a cargo ship on the cost per unit shipped? Yeah... I absolutely believe it.

Oh yes it is. This is one area in where I know for sure what im talking about, admitedly. I work for a company and handle slight logistics as far as items we import from India, China and other prices. And having Containers shipped by sea is incredibly expensive. People in international shipping make killings off of this.

[JetWolf]

why haven't EA\Harmonix come out and said this is how it breaks down heres our profit margin? That would end all of this now wouldn't it but they won't so what have they got to hide?

No company anywhere is going to reveal to their consumers their exact profit margin. That's just not going to happen, not anywhere.

I am in whole-hearted agreement that more information is needed, if for no reason other than to stop this rampant speculation. (Because however informed we think we are, that's all it is right now.) But expecting a euro by euro breakdown with accountability for every cent? If knowing the profit margin for every step in the chain is what it would take to satisfy you, then I fear you're setting yourself up for inevitable disappointment.

[neural]

With a community like this, where even FREE DLC given away results in ridiculous backlash, they must have realized that this price was going to piss people off. They must also realize that their only real competition in this genre is half the price. And if they could justifiably get it to you at a cheaper cost, they would as it results in more units sold.

Companies are made by people, and people do errors. EA already did it with the Battlefield:BC premium weapons fiasco, so I don't see anything strange in this. Someone thought that such a price would have been a good idea, and the company trusted him/them.

How would you justify GHIII being cheaper? Activision likes to lose money? The GHIII guitar is cheaper to manufacture than RB one? If so, the price would have been different in USA too. No, IMHO there's no justification other than EA wanting to milk gamers, as they often like to do.

Something tells me that, if Harmonix was still working with RedOctane/Activision on this, all this wouldn't have happened, and probably we would't have waited so long for the game coming in Europe.

[neural]

Oh yes it is. This is one area in where I know for sure what im talking about, admitedly. I work for a company and handle slight logistics as far as items we import from India, China and other prices. And having Containers shipped by sea is incredibly expensive. People in international shipping make killings off of this.

So EA, just use UPS and cut down the costs

[face777]

Well Euro guys since you all know the price in America, buy it and import it! Oh wait then you guys will complain about the price of International shipping on a rather large box. But you seem to have no problem with EA or Harmonix eating the cost and losing money so that you can get your precious Rock Band. This has been discussed over and over and over again, but you dont want to get it through your thick skulls that it cost's so much to ship this product to you. You complain about paying 100% more yet gasoline prices in your country compared to ours is guess what? 100% more meaning shipping into your countries is what? 100% more!

Can't believe the general arse-holishness of many Americans on these boards.