Cost of apps in UK

[mottyboy]

Can anyone tell me why games and apps are so much more expensive in the UK. For example the new Microsoft game is $2.99. I'm the UK it is ?2.49 which is $3.98 equivalent.

 

[Jay Bennett]

I'd like to tell you it's because of licensing costs/legal fees or something like that. But the simple truth is that if you live outside of the US everything will cost more as American companies seem to ignore the exchange rate (see Apple)

 

[enahs555]

Looking at just exchange rates are not fair for direct price comparisons.

 

[selfcreation]

well the Euro is worth ALOT more then the USA dolar. if anything it should be CHEAPER in the UK no?

well US is havign a UGE dept problem right now i think so it might lower some prices

 

[enahs555]

No. To sell the commodities in Europe it requires having European offices, lawyers, accountants, other employees.

The price set in the US is what companies deem profitable to them. When exporting to other countries, the cost goes up and they have to charge as such.

When I order things from European companies selling products over here, I pay a lot then what the exchange rate would dictate.

 

[selfcreation]

yeah when you order outside your country you also pay Import taxe.

 

[enahs555]

yeah when you order outside your country you also pay Import taxe.

Yes.
But there are companies based originally in the UK and have a US counterpart, and we pay more for their products.

I.E. Microsoft, when you are actually paying Microsoft UK

 

[Jay Bennett]

Yes.
But there are companies based originally in the UK and have a US counterpart, and we pay more for their products.

I.E. Microsoft, when you are actually paying Microsoft UK

Actually not entirely sure that's true here my friend. I would have expected that to be the case but as a registered developer everything revolving payment (including tax identities etc) is done through the US, so I have a feeling we are actually paying Microsoft at Redmond with every marketplace transaction. At least, all my payments as a dev will come from the US.

Oh and just for clarification from an earlier post, in the UK we don't use the Euro, we have the Pound Sterling (or GBP)

 

[enahs555]

Actually not entirely sure that's true here my friend. I would have expected that to be the case but as a registered developer everything revolving payment (including tax identities etc) is done through the US, so I have a feeling we are actually paying Microsoft at Redmond with every marketplace transaction. At least, all my payments as a dev will come from the US.

Oh and just for clarification from an earlier post, in the UK we don't use the Euro, we have the Pound Sterling (or GBP)

If you are allowed to purchase apps via the phone network then some of it has to be going through a Microsoft UK shell company. I suspect all apps end users purchase over there would then go through the UK company; why make it confusing and split it up?

A developer is different though; you are giving your product for Microsoft to sale how they see fit. They wanted tight control over it so they forced most developers into a US company with that aspect. Some countries go through a completely separate company not owned by Microsoft.



Also, on app sales, for sales from many other countries not only does Microsoft take there 30%, but I am also getting deducted various VATs taxes. I suspect you are not. Maybe when the Marketplace is opened up to more countries you might start getting hit with VATs....but tax and taxes laws are freakin complicated so who knows.

 

[mottyboy]

All I know is everything is getting very expensive

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[mottyboy]

The rich get richer the workers make them rich

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[mottyboy]

Love my WP7 but apps are s joke for the money

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