How game publishers set international prices: A study reveals four pricing approaches on Steam
Although digital platforms make it possible to sell the same product globally, prices often vary across countries because of differences in purchasing power, currencies, taxation and other market conditions. At the same time, the transparency of online prices enables consumers to compare prices across regions easily. Companies therefore must balance local affordability with the need to avoid…
An analysis of game prices on Steam across eight international markets has identified four distinct pricing approaches utilized by publishers. The study, published in the Journal of International Marketing by researchers Tomohiro Murakami et al., examined list prices compared to Steam's recommended regional prices between August and September 2023. The four pricing categories are:
1. Publishers largely adhering to Steam's recommended prices.
2. Making modest adjustments to the recommended prices.
3. Setting higher-than-recommended prices in certain emerging markets.
4. Establishing significantly different prices across countries and game titles.
The research found that average prices in Brazil and India were about 128% and 130% of Steam's recommendations, respectively, indicating relatively high price variation in these markets. Additionally, publishers affiliated with major global game companies were more likely to employ the fourth pricing approach, characterized by the greatest variation in prices across markets.
The study highlights that international pricing on digital platforms is not a straightforward choice between uniform worldwide pricing or completely different prices per market. Instead, companies employ multiple pricing strategies that combine common benchmarks while adapting to local market conditions.
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