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Uncategorized Monday, April 30th 2012 at 12:30 pm

Australia Finally Investigating Its Absurdly High Software Prices

Life ain’t easy down under. In addition to particularly strict laws regarding violence in gaming, Australians can also expect to pay a pretty penny for their software. For reasons mostly unknown, software tends to be more expensive in Australia than it is in the U.S., sometimes reaching near twice the price of copies licensed to U.S. citizens. While inexplicable, it’s something of a standard practice, as if downloading files in Australia is significantly more resource intensive than downloading them somewhere else. To the relief of Australians everywhere (but mostly those in Australia), the Australian government is now looking into this bizarre trend.

The straw that broke the camel’s back in this case was the release of Adobe’s newest Creative Suite. The new suite, which prides itself on a progressive “subscription” payment plan is a reasonable $49.99 a month in the States, but inexplicably $62.99 a month in Australia. The Australian House of Representatives is now finalizing a draft of an inquiry that will soon go out to companies like Adobe, as well as other giants like Microsoft and Apple, who inflate prices in Australia. One can imagine it will go something along the lines of “Hey, what the hell, mate?”

The inquiry is set to build on findings by the Productivity Commission, who’s report tellingly states that excuses for the price modification tends to be “not persuasive” and is often practically nonexistent. It seems like the trend is something that has just sort of justified itself.

Australian techie Trevor Long put things this way to The Age:

“As time rolls on, every single one of the Australian arms of those global companies will realise that Australian consumers are getting their products elsewhere. People are already setting up, in droves, addresses in the US just so they are able to download a piece of American software at American prices.”

The fact that circumvention of these prices involves something so trivial as pretending to be somewhere else really speaks to the lunacy of the whole situation. And Austraila isn’t alone. While other countries experience price bumps that are a little easier to swallow, the modification of software price based on location seems insane. Hopefully it won’t be long before the whole situation gets straightened out. It hurts me deep in the soul that somewhere, an Australian bought StarCraft II for $70 on sale. No one should have to go through that.

(The Age via The Next Web, image via reddit)

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  • Daniel Gray

    Not just software. Everything is more expensive over here and even more so since the Australian Dollar has held its own during the GFC. Then again, the high prices are somewhat mitigated by ridiculously high salaries, as well.

  • Philcat

    Yea, last time there they want to raise a pack of smokes to $15, and beer by the case is already over double at $50.

  • Anonymous

    It’s probably high because Aussies were willing to pay for it. When they realized Americans weren’t willing to pay for software games past  $60 they never went past that number.

  • verybored

    Software prices are that high because of the cost of shipping physical goods there. Retailers refuse to allow software companies to undercut them, forcing  them to charge these ridiculous prices. 

  • http://twitter.com/AngryTechBlog The Angry Technician

    A similar phenomenon exist in the UK, though not to the same extreme. With physical goods in particular, the joke is that if you want to know the what the price of something priced in USD$ will be once it makes it’s way to the UK, you just change the $ sign to a £ sign.

    (The actual exchange rate is currently about $1 = £0.61)

    In reality it hasn’t been quite that bad for a while, but we still pay a significant premium.

  • Dailystooge

    As an Australian I buy most of my games from Ebay as they are the right price (not $100 for a new PS3 game … seriously). I never understood how when currently our dollar is stronger than the US Dollar and games are all manufactured in China (which is much closer to Australia than the US) how we have to pay double. SO I just don’t do it IMPORT EVERYTHING (PS Vita and PS3 are region free). Its way too late as far as I am concerned even if the prices go to what they should be all of a sudden I am still importing as I have been screwed over for years so why should I pay these clown now ????

  • Evilhayama

    I don’t buy the shipping excuse, many of these products are manufactured in asia which if anything is closer to Australia than the US. Applying these prices to downloads is even more insane. 

  • Ruscour

    It almost made sense for the long period of time where the Aussie dollar was weaker than the US, and for as long as it’s been on parity prices on stuff like vidya haven’t shifted at all.  Good to see something will eventually be done.

  • Ruscour

    It almost made sense for the long period of time where the Aussie dollar was weaker than the US, and for as long as it’s been on parity prices on stuff like vidya haven’t shifted at all.  Good to see something will eventually be done.

  • I’ll bite.

    I don’t think the problem is the shipping or importation of goods. Steam,D2D and other online distributors charges us the excess price over the internet as well (if we declare or are forced to declare we are from  Australia).  

    So really, the shipping argument is stupid when it comes to purchasing online software,

  • D.

    Meanwhile, Russia, Ukraine, Vietnam and the likes enjoy the newest triple A title at half price (30$ instead of 60).

    Apparently there’s a huge business over there for pirated games, as if the rest of the world didn’t know the first thing about torrents and were all nice guys who like to buy overpriced digital goods.

  • steelbom

    That doesn’t explain digital goods though. For example, a $20 US HD movie in iTunes is $30 AU. The same is true of music and such.

  • Anonymous

    Not to mention half the goods are produced and boxed in countries close to the region they will be sold in. Just like how Coke bottles their drinks around the world so that they keep costs down. So that’s not true at all.

    And of course, digital sales. I remember gifting CoD to my account from an american steam account so that i got a $40 discount. That was ridiculous..