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On March 31st we are going to discontinue the Fair Price Package program. Let us explain the reasoning behind this decision.

We came up with Fair Price Package (FPP) as a way to make up the price difference between various countries. Some games on GOG.COM have regional pricing, meaning the price of the same game in one place can be higher compared to its price in North America. In countries where the game is more expensive, we give users the equivalent of the price difference in GOG Wallet funds. In actual numbers, on average, we give users back 12% of the game price from our own pocket. In some cases, this number can reach as high as 37%.

In the past, we were able to cover these extra costs from our cut and still turn a small profit. Unfortunately, this is not the case anymore. With an increasing share paid to developers, our cut gets smaller. However, we look at it, at the end of the day we are a store and need to make sure we sell games without a loss.

Removing FPP is not a decision we make lightly, but by making this change, we will be able to offer better conditions to game creators, which — in turn — will allow us to offer you more curated classic games and new releases. All DRM-free.

We wanted to make sure you have some lead time to still benefit from the Fair Price Package. The program will last until the 31st of March, 2019, so if you would like to take advantage of it, now is the time. The funds you gather from the program will keep the 12 months expiration date from the moment you’ve been granted your last funds.
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First of all, thank you for your support. This was not an easy decision to discontinue the FPP program and we're grateful to you for understanding the reasons behind it. We see that quite a few of you raised concerns about GOG's future. As a part of publicly traded company, we can't comment on any financial results until they are officially reported, but we want to ensure you everything is good with GOG. Being part of a big gaming company, some reports - especially some given by significant media outlets - can often sound much scarier than reality.

You've been also concerned about your access to the games you’ve purchased on GOG. We've covered this topic years ago and it's been in our User Agreement for a long time (please check the section 17.3). This is not only a legal obligation to you but a core part of our ethics as a company.

But don’t worry, all is good, and we have a great plan for the future of GOG. We can’t wait for you to see some of the exciting things we have coming very soon.

EDIT: pinned
Post edited February 26, 2019 by elcook
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BeatriceElysia: They can't charge devs additional for regional pricing just because you want cheap games.
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AstralWanderer: this situation has arisen because GOG is paying more to developers/publishers....
I doubt that.
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Lucumo: More total stupidity
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RWarehall: You don't have a clue what you are talking about. I'm still responsible for taxes on my online goods. GoG is not paying those taxes. Should I be audited, they certainly can tell what and where money is spent. You clearly are naive when it comes to the laws of my state which gives me an option to pay a flat fee instead of collecting individual receipt for every non-taxed online purchase. GoG doesn't pay any of this, nor is responsible to pay it. It doesn't work the way you think it does and that says a lot about you.

Furthermore, GoG does not collect the necessary data to pay sales taxes in the U.S. They would have to ask everyone for their cities and states and probably have to verify address information through a verified Paypal or Credit Card so they could submit the correct amount to the correct state and city.

But you continuously use that as a smokescreen for the real issue and that issue is that GoG pays 0% VAT on games bought in the United States while they have to pay substantial VAT for games sold in most other countries.
Given that even with regional pricing, because they have been paying back the difference in store credit, they are losing a substantial portion of their profits as a result for game sales in higher regionally priced regions.

Hence with the push by developers for a bigger revenue cut, they can no longer afford to supplement your games and pay a substantial portion of the taxes you owe out of their own pockets. Hence why the Fair Price Package is going away. Primarily because it was a deal too good to be true.

That said, I sympathize over developers who are charging for more than can be accounted for by VAT in some regions.
But a lot of regional pricing is completely justified because of the way the EU requires VAT to be included in the advertised price despite those greedy people who think they shouldn't have to pay the additional taxes on it. In order to cut their margins, GoG has to make sure every sale is equally profitable to them to stay in business.
Who said otherwise? You clearly haven't been reading my posts. Also, smokescreen for what? We are discussing American sales tax/use tax, not VAT of any other countries (see post 774 where the discussion started).
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Lucumo: Who said otherwise? You clearly haven't been reading my posts. Also, smokescreen for what? We are discussing American sales tax/use tax, not VAT of any other countries (see post 774 where the discussion started).
The discussion started with post 774 which was about VAT, now you look really stupid. VAT which you claim GoG pays for American companies where you clearly are wrong because America has no VAT. And American sales taxes which GoG doesn't pay either because they are not responsible for them because they are charged on a state and local level. We do not have a national sales tax.

It seems YOU clearly aren't reading MY posts! Or even your own, you just keep blabbering on about things that are clearly too complex for your small mind to understand.
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AstralWanderer: this situation has arisen because GOG is paying more to developers/publishers....
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BeatriceElysia: I doubt that.
I think he's half right. It does appear GoG is at the very least making plans to offer more to developers if they have not already. We do not know if one of the reasons they could get Blizzard on board is by offering them a bigger cut.

Another reason seems to be that the current model just doesn't work to make them profitable. The fact some countries have recently started charging additional "entertainment taxes" on top of VAT certainly makes it worse. And fear of other countries doing something similar means the Fair Pricing Plan needs to go the way of the dodo because GoG can't take that much of a hit on their profits while developers continue to think they are taking in 30% when the reality is it's far less due to these subsidies.
Post edited March 13, 2019 by RWarehall
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Lucumo: Who said otherwise? You clearly haven't been reading my posts. Also, smokescreen for what? We are discussing American sales tax/use tax, not VAT of any other countries (see post 774 where the discussion started).
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RWarehall: The discussion started with post 774 which was about VAT, now you look really stupid. VAT which you claim GoG pays for American companies where you clearly are wrong because America has no VAT. And American sales taxes which GoG doesn't pay either because they are not responsible for them because they are charged on a state and local level. We do not have a national sales tax.

It seems YOU clearly aren't reading MY posts! Or even your own, you just keep blabbering on about things that are clearly too complex for your small mind to understand.
What? It was about whether or not things are included in the price, it didn't matter whether it's VAT or sales tax. To cite the part of the user agreement again.
6.4. All prices are visible in the product catalogue page. They’re inclusive of legally applicable sales taxes/VAT.
So GOG includes everything that has to be included in the price which is exactly the point I made.

Also, you correctly pointed out that the US doesn't use VAT (despite it being a sales tax) which I acknowledged (see post 782) but where I also pointed out that it doesn't matter in that discussion.
If you are talking about a small mind, please look at yourself. You can't even comprehend that Steam which charges 6% sales tax on every product you purchase (no upper limit) is basically always more than 0% on GOG leading into a self-declaring use tax which can be limited to $50 in what you wrote which includes all the other goods as well where you don't pay a sales tax either. As such, Steam is effectively more expensive.
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Lucumo: snip
Keep quoting a User agreement that you clearly do not understand! GoG does not pay the U.S. sales taxes because paying them are not legally applicable to them. How dumb are you? Must be pretty dumb because you keep repeating the same thing without thinking about how it works at all! GoG does not verify our addresses so couldn't possibly be paying city and state taxes for the U.S.

And that $50 option in my state only works if I buy at least $833 of items online every year which I'm not already charged sales taxes on. And if I work a lot of overtime in a year, I break into a new category where it costs $100 and I'd need to have spent $1666 online to break even or profit. Otherwise, I'm still expected to pay the 6% tax and itemize it. It's not actually cheaper. But you don't seem to want to get it...

Steam generally charges exactly the same as a result...especially now that Amazon and Steam and Ebay and every big retailer takes out sales taxes for me. So unless I am spending more than $833 on games every year, GoG isn't cheaper.

Sorry. But people whose purchases cost GoG an additional 20% VAT cost and they replace the difference with the Fair Price Package cost GoG far more than the 0% nothing tax they pay and the $0 they pay back in a Fair Price Package to U.S. buyers. If you can't understand this, then you are beyond help.

You want to talk fair? For a $10 game, it costs me $10.60, for you, even with regional pricing, because of the Fair Price Plan, you are paying $10, less than me despite the fact that you cost GoG VAT.
Post edited March 13, 2019 by RWarehall
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Lucumo: snip
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RWarehall: Keep quoting a User agreement that you clearly do not understand! GoG does not pay the U.S. sales taxes because paying them are not legally applicable to them. How dumb are you? Must be pretty dumb because you keep repeating the same thing without thinking about how it works at all! GoG does not verify our addresses so couldn't possibly be paying city and state taxes for the U.S.

And that $50 option in my state only works if I buy at least $833 of items online every year which I'm not already charged sales taxes on. And if I work a lot of overtime in a year, I break into a new category where it costs $100 and I'd need to have spent $1666 online to break even or profit. Otherwise, I'm still expected to pay the 6% tax and itemize it. It's not actually cheaper. But you don't seem to want to get it...

Steam generally charges exactly the same as a result...especially now that Amazon and Steam and Ebay and every big retailer takes out sales taxes for me. So unless I am spending more than $833 on games every year, GoG isn't cheaper.
Where am I saying that they pay US sales tax? I've said the contrary several times already, even on the previous page ("[...]GOG doesn't charge sales tax (according to you)"). And I already challenged you to point it out which you ignored and just repeated the same all over again. Additionally, your continuous use of insults show that you can't have a level-headed discussion that actually addresses what another person writes.

So what's your point? This year I've already spend more than $833 on out-of-country online goods (games only even). Granted, if you barely buy stuff, then it wouldn't really matter (apart from the option of just not declaring it).
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Emob78: Poland is learning. Venezuela can't keep the lights on, and GOG is slowly coming around to becoming profitable again.

Everyone will into capitalism sooner or later. Or you can mount up the state police and learn the wonderful cuisine of eating dogs and cats.
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richlind33: "Capitalism" is the reason the US is punishing Venezuela for pricing it's oil in yuan? o.O
No. Rampant Latin-flavored socialism is the reason Venezuelans are currently dining on rats and sharpening their Dark Age weaponry.
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Lucumo: Which has nothing to do with what I wrote. If Steam charges sales tax (as you said), then the price for games on Steam is effectively more expensive as GOG doesn't charge sales tax (according to you).

Well, the whole thing seems like a waste of time anyway. Glad I don't have to do that.
Depends on the state as a few states dont charge sales tax. Also some states still dont have laws to collect sales tax on internet purchases
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Lucumo: Which has nothing to do with what I wrote. If Steam charges sales tax (as you said), then the price for games on Steam is effectively more expensive as GOG doesn't charge sales tax (according to you).

Well, the whole thing seems like a waste of time anyway. Glad I don't have to do that.
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satoru: Depends on the state as a few states dont charge sales tax. Also some states still dont have laws to collect sales tax on internet purchases
Yeah, I did read your post regarding the current situation in the US (I also looked up an overview regarding sales tax for every state from...last year(?) which may already be out of date, with laws getting passed to collect taxes where they are able to. I didn't want to have two discussion branches at the same time, so I didn't reply to you. My post (and all that follow) refers to his situation since he said he is paying 6% sales tax and as such it was the most tangible point to base anything on.
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richlind33: "Capitalism" is the reason the US is punishing Venezuela for pricing it's oil in yuan? o.O
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Emob78: No. Rampant Latin-flavored socialism is the reason Venezuelans are currently dining on rats and sharpening their Dark Age weaponry.
That doesn't explain the economic sanctions and the efforts re regime change. And what you describe has been the rule in the entire region ever since the School Of The Americas came into being.
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Lucumo:
Would have much preferred to use that, but you don't have chat enabled, so just saying here: Would you kindly stop feeding...?

To quote Pratchett: "People on the side of The People always ended up disappointed, in any case. They found that The People tended not to be grateful or appreciative or forward-thinking or obedient. The People tended to be small-minded and conservative and not very clever and were even distrustful of cleverness. And so the children of the revolution were faced with the age-old problem: it wasn't that you had the wrong kind of government, which was obvious, but that you had the wrong kind of people.
As soon as you saw people as things to be measured, they didn't measure up. [...] Humans were worse than sheep. Sheep just ran; they didn't try to bite the sheep next to them."
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Lucumo:
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Cavalary: Would have much preferred to use that, but you don't have chat enabled, so just saying here: Would you kindly stop feeding...?

To quote Pratchett: "People on the side of The People always ended up disappointed, in any case. They found that The People tended not to be grateful or appreciative or forward-thinking or obedient. The People tended to be small-minded and conservative and not very clever and were even distrustful of cleverness. And so the children of the revolution were faced with the age-old problem: it wasn't that you had the wrong kind of government, which was obvious, but that you had the wrong kind of people.
As soon as you saw people as things to be measured, they didn't measure up. [...] Humans were worse than sheep. Sheep just ran; they didn't try to bite the sheep next to them."
Perhaps people shouldn't be measuring people in the first place, at least not for anything other than personal relationships and hiring. The problem with government is that they insist on incompetently managing incompetent people while ignoring their own incompetence. The fact that government is trying to play moral busybody and make people more efficient while people on some sort of government payment (whether it's welfare or military) still have to do taxes based on their government income is a huge indicator that they can't even get their own house in order. Telling people they should remove a speck of dirt from their own eyes, when government can't even remove a structural beam from their own.
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Lucumo: Where am I saying that they pay US sales tax? I've said the contrary several times already, even on the previous page ("[...]GOG doesn't charge sales tax (according to you)"). And I already challenged you to point it out which you ignored and just repeated the same all over again. Additionally, your continuous use of insults show that you can't have a level-headed discussion that actually addresses what another person writes.

So what's your point? This year I've already spend more than $833 on out-of-country online goods (games only even). Granted, if you barely buy stuff, then it wouldn't really matter (apart from the option of just not declaring it).
You are such a liar...
What was your point 6 or 7 times pointing to GoG's User Agreement claiming it's proof GoG pays sales taxes then? Dishonest people like you...

The point is this...
For all of you crazy people complaining about all regional prices and crying about the loss of the Fair Price Program, the point is they are completely justified to a point.

A $10 game sold in the U.S. gives GoG and the developers $10 (minus processing fees)
For the same game with a 20% VAT to pay the developers their same share, the game has to sell for $12+ (a little more to account for the increase in processing fees)

If you have a problem with this, then maybe you shouldn't complain to GoG but contact your local governments to reduce the cost of business by removing or lowering VAT.

And as to your over $833 of out-of-country goods, how many have you NOT paid VAT on? As you have done throughout this entire discussion is lie, distort and make shit up on the fly to promote your terrible points. I might get things through Amazon and some games on Steam too, but those purchases don't count because I'm paying sales taxes on them.

IF YOU WOULD BOTHER TO READ WHAT I'VE WRITTEN, which I know is hard for you, you'd realise that only untaxed goods count in that $833 to just break even on taxes. Yet you continued to claim how GoG is cheaper because of this despite the fact I'm still responsible for taxes on both Steam and GoG.
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RWarehall: snip...
Just asking, if it's the VAT that is added to these regional priced games, why is so much variance in my region? Looking through the last pages of the Good News: Price Updates thread, at regRO, I can see it goes from -9% to +39%. But most of the time it seems to be on the plus side, at something between +10% and +20%. So why not all these have a +19%, which is the VAT in Romania?

And also this

...we don't really make decisions on who we charge what we follow the advice of our partners (Steam & GOG) who dictate their pricing matricies.
I've seen so many times people saying that the publishers/developers set the regional pricing, but this doesn't seem to be the case. I'm not saying you said such thing, as I didn't read the whole thread and usually don't pay much attention on who says what and whatnot.

As for the Fair Price Package, I personally don't care. The games are too expensive at full price in my country, and when they have big discounts in sales, the FPP difference is too small to matter. I guess is better without it on the long run.
Post edited March 14, 2019 by ariaspi
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RWarehall: snip...
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ariaspi: Just asking, if it's the VAT that is added to these regional priced games, why is so much variance in my region? Looking through the last pages of the Good News: Price Updates thread, at regRO, I can see it goes from -9% to +39%. But most of the time it seems to be on the plus side, at something between +10% and +20%. So why not all these have a +19%, which is the VAT in Romania?

And also this

...we don't really make decisions on who we charge what we follow the advice of our partners (Steam & GOG) who dictate their pricing matricies.
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ariaspi: I've seen so many times people saying that the publishers/developers set the regional pricing, but this doesn't seem to be the case. I'm not saying you said such thing, as I didn't read the whole thread and usually don't pay much attention on who says what and whatnot.

As for the Fair Price Package, I personally don't care. The games are too expensive at full price in my country, and when they have big discounts in sales, the FPP difference is too small to matter. I guess is better without it on the long run.
From what I can tell GOGs regional pricing is basically "all over the map"

Steam's regional pricing is dictated whenever a new region goes live. Either you add and approve the price for taht region, or people in that region can't buy the game. This means with new regions unless a dev doesnt want to update their pricing compliance is pretty high

GOG's pricing doesnt seem to be retroactive. Which means, it appears, that games released in the far past, will have less regional pricing than newer games. So if a game was released 5 years ago it migh tonly have say 9.99 euro pricing in your region. But a game released today, that would cost 9.99 euro woudl automatically get the 'new' regional pricing in RO of say 4.99 euro. (this is just an example and not indiciative of actual pricing differentials)