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Hey, GOGgers,

We're not perfect, we're exploring new frontiers, and we make mistakes. We thought DRM-Free was so important that you'd prefer we bring you more DRM-Free games and Fair Price was less critical and that it could be sacrificed in some cases. The last two week's worth of comments in our forums (nearly 10k!), show that's not the case. We didn’t listen and we let you down. We shouldn't sacrifice one of our core values in an attempt to advance another. We feel bad about that, and we're sorry. Us being sorry is not of much use to you, so let’s talk about how we will fix it.

One: DRM-free forever. Abandoning fixed regional pricing means it will probably take longer to get some games, but you've made it clear that sacrificing fair pricing for more DRM-free games isn't acceptable.

Two: We will adamantly continue to fight for games with flat worldwide pricing. If that fails and we are required to have regional prices, we will make up the difference for you out of our own pockets. For now it will be with $5.99 and $9.99 game codes. In a couple of months, once we have such functionality implemented, we will give you store credit instead, which then you will be able to use towards any purchase and cover the price of it in full or partially. Effectively gamers from all around the world will be able to benefit from the US prices.

This will apply to every single game where we do not have flat pricing, such as Age of Wonders 3 (full details here), Divinity: Original Sin, and The Witcher 3. If you remember the Fair Price Package for The Witcher 2, this will be exactly the same.

Three: We still intend to introduce the pricing in local currencies. Let us explain why we want to do it and how we want to make it fair for everyone. From the very beginning our intention was to make things easier for users whose credit cards/payment systems are not natively in USD. The advantages are simple because the price is more understandable and easier to relate to. There would be no exchange rates involved, no transaction fees, and no other hidden charges. However after reading your comments, we realized we have taken an important element away: the choice. In order to fix this, we'll offer the option of paying in the local currency or the equivalent in USD. This way, how you pay is always your choice.

Four: You are what matters, and we will be sure to involve you all more in what we're doing and why we're doing it. Let's start by meeting you at GDC - we’d like to invite you to meet us face-to-face Monday the 17th at GDC. Obviously, not all of you can come to San Francisco, so we want to invite all of you to an online event with us early in April to ask us whatever you would like. More details soon.

The bottom line is simple: there may be companies that won't work with us (although we will work hard to convince the most stubborn ones ;). Yes, it means we might miss out on some games, but at the same time GOG.com will remain true to its values and will keep on offering you the best of DRM-free gaming with Fair Prices.

Once again thank you for caring so much about GOG.com. We will work hard not to disappoint you again.

--Marcin "iWi" Iwinski & Guillaume "TheFrenchMonk" Rambourg
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SirPrimalform: Phew, you're still working? I wonder if you know the answer to my above question. Either way, go to bed!
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JudasIscariot: This double question?

"Does that mean the equivalent price point? e.g. a choice between €4.49 or $5.99 for those in the Eurozone

Or does it mean the equivalent value in USD? e.g. a choice between €4.49 and $6.22 (which is €4.49 in USD at the current exchange rate)"

I believe this is an either-or scenario where you can choose to pay the EQUIVALENT in a given currency. So say a game costs $5.99, you can either pay the USD as always OR you can choose to pay the equivalent of $5.99 in GBP :) Feel free to correct me if I am wrong :)
I think folks would understand that. It's unclear to me why they can't advertise the price in USD or euoros and then just have the appropriate amount in a supported currency. Presumably, either USD or the local amount.

In someways, I'd rather pay in euros because it makes it a bit more clear that it's actually a foreign transaction.
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JudasIscariot: And here's hoping you, the community, will stick with us for the long haul as I believe the ride is going to get very interesting, in a manner of speaking :D
I'm the community? I didn't think the situation was that desperate... :P

On a more serious note, I certainly intend to stick around and keep buying games here, as long you guys keep offering good DRM-free releases and keep being awesome in general. ( The regional pricing thing and whatnot was never a big deal to me, personally. )

Can't quite tell if "an interesting ride" is a good or a bad thing... Oh well, at least it's not boring?
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pickle136: I come from a non-VAT country and i was surprised by the reaction of those that leave in countries with VAT. Its amazing that these customers demand that the retailer pay the VAT.

When ive come across EU companies before they always pass on the taxes to the consumer. Otherwise their bottom line is effected and it makes it pointless to have created the sale.

I have a local sales tax and i expect i will be the one paying it (unless the store is running a promo).
Maybe theres too much of an entitlement culture in these countries?
Am I missing something?
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PixelBoy: 1) The pricing change was NEVER about VAT, it was always about regional pricing for other reasons entirely.

2) AFAIK, GOG is a Polish company having some of its functions on Cyprus. Poland and Cyprus both have VAT, unless I am mistaken, so it will be paid by default anyway.

3) Buying from a EU company and being a resident of a non-EEA country enables you (in some cases) get your purchase tax-free. I don't know if this applies on GOG purchases or not. GOG order confirmation doesn't specify whether taxes have been paid or not, and if yes, how much. The point is, GOG doesn't lose any money on EU area sales. They possibly may have a bigger profit margin on non-EEA sales, but in no circumstances does GOG pay the VAT out of their own pocket. It's money that we pay that just goes through GOG bank accounts to whatever government they forward it to.
Not sure whether Poland has a VAT or not, but the national currency there is the Złoty, and not the Euro as many people believe. Someone pointed that out to me a few months back.
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Weclock: wait, what happened?
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CharlesGrey: Somebody set us up the bomb!
What You Say !!


(BTW: Sry but it's "...set up us..." not "...set us up..." ;P )
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JudasIscariot: This double question?

"Does that mean the equivalent price point? e.g. a choice between €4.49 or $5.99 for those in the Eurozone

Or does it mean the equivalent value in USD? e.g. a choice between €4.49 and $6.22 (which is €4.49 in USD at the current exchange rate)"

I believe this is an either-or scenario where you can choose to pay the EQUIVALENT in a given currency. So say a game costs $5.99, you can either pay the USD as always OR you can choose to pay the equivalent of $5.99 in GBP :) Feel free to correct me if I am wrong :)
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hedwards: I think folks would understand that. It's unclear to me why they can't advertise the price in USD or euoros and then just have the appropriate amount in a supported currency. Presumably, either USD or the local amount.

In someways, I'd rather pay in euros because it makes it a bit more clear that it's actually a foreign transaction.
Not a lawyer but I believe there is some sort of law in the EU that prevents you from advertising on the front page the price of a given good in one price and then having the price change according to someone's region when they get to the actual game card not check out but before checking out.

At least that's one of the comments that kept popping up somewhat repeatedly in the Letter from the M.D. thread.

Again, not a lawyer so my answer may be wrong. Sorry if I mislead anyone here unintentionally :/
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PixelBoy: 1) The pricing change was NEVER about VAT, it was always about regional pricing for other reasons entirely.

2) AFAIK, GOG is a Polish company having some of its functions on Cyprus. Poland and Cyprus both have VAT, unless I am mistaken, so it will be paid by default anyway.

3) Buying from a EU company and being a resident of a non-EEA country enables you (in some cases) get your purchase tax-free. I don't know if this applies on GOG purchases or not. GOG order confirmation doesn't specify whether taxes have been paid or not, and if yes, how much. The point is, GOG doesn't lose any money on EU area sales. They possibly may have a bigger profit margin on non-EEA sales, but in no circumstances does GOG pay the VAT out of their own pocket. It's money that we pay that just goes through GOG bank accounts to whatever government they forward it to.
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skeletonbow: Not sure whether Poland has a VAT or not, but the national currency there is the Złoty, and not the Euro as many people believe. Someone pointed that out to me a few months back.
We do have VAT here and yes, we do use the zloty here instead of the Euro. Boy, was I in for a shock when I first got here, here being Poland and Europe in general, on how prices for games shot through the roof for me (before I started working for GOG :) )
Post edited March 11, 2014 by JudasIscariot
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skeletonbow: Not sure whether Poland has a VAT or not, but the national currency there is the Złoty, and not the Euro as many people believe. Someone pointed that out to me a few months back.
Yes, we have. 23% right now.
And as GOG is officialy registered on Cyprus I think this is the place where they are paying taxes... Or at last majority of the taxes.
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wraith808: But what people aren't getting is that this will pretty much only affect the games that were going to be fairly priced already- just priced locally. Just as they are doing with AOW3, they could have offered that same offer, kept regional pricing, and been able to get more offerings to go DRM-free.

But hey... I wasn't loud and complaining about it. And truthfully, I'm not complaining now. Just pointing out that there *is* another side to this equation, and before this is declared a win, you might want to consider the adverse effect that this time to market on games, and selection in the catalog has been having on GoG already...
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wvpr: Read Point 2 more carefully. GOG is leaving the door open for games with region-based pricing. They're promising to fight harder against it, but they will accept it and make up the difference when they can't get the publishers to agree. Their stance may affect the titles they're able to carry, but they're not going to outright refuse every title because of it.
So then... what's the difference? As I said in my first point

But what people aren't getting is that this will pretty much only affect the games that were going to be fairly priced already- just priced locally. Just as they are doing with AOW3, they could have offered that same offer, kept regional pricing, and been able to get more offerings to go DRM-free.
So is this only their back catalog that's not regionally priced? If so, then I wouldn't think it would affect negotiations with publishers.

... there's a definite disconnect in what some people think is being said (including me) and what's actually being said if they are still having regional pricing. After all, on AOW3, they'd already said they were giving people who were screwed by the pricing compensation.
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CharlesGrey: Somebody set us up the bomb!
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gamefood: What You Say !!

(BTW: Sry but it's "...set up us..." not "...set us up..." ;P )
Ehh -- Meme police. :P

TAKE OFF ZIG FOR GREAT JUSTICE!
Stick to your guns GOG.

If some IP holders are too stupid/stubborn to profit from IP they aren't doing anything with, without much if any effort on their part, their loss.
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gamefood: What You Say !!

(BTW: Sry but it's "...set up us..." not "...set us up..." ;P )
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CharlesGrey: Ehh -- Meme police. :P

TAKE OFF ZIG FOR GREAT JUSTICE!
MAKE YOUR TIME!
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JudasIscariot: This double question?

"Does that mean the equivalent price point? e.g. a choice between €4.49 or $5.99 for those in the Eurozone

Or does it mean the equivalent value in USD? e.g. a choice between €4.49 and $6.22 (which is €4.49 in USD at the current exchange rate)"

I believe this is an either-or scenario where you can choose to pay the EQUIVALENT in a given currency. So say a game costs $5.99, you can either pay the USD as always OR you can choose to pay the equivalent of $5.99 in GBP :) Feel free to correct me if I am wrong :)
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hedwards: I think folks would understand that. It's unclear to me why they can't advertise the price in USD or euoros and then just have the appropriate amount in a supported currency. Presumably, either USD or the local amount.

In someways, I'd rather pay in euros because it makes it a bit more clear that it's actually a foreign transaction.
Also, I noticed you're back in the U.S.

How was the *ahem* flight? :D
Post edited March 11, 2014 by JudasIscariot
i'm just going to assume that there be stuff going down which i ain't privy to. i think that is a very safe assumption. But the more i learn of this the more i get a sense that something ain't right. Just a kernel of thought, not developed, just potential for being played Or just missing critical detail. But i got loads of goodwill towards GOG (earned by GOG) so i'm happy to extend blind trust further. Wait and see.
Major announcement? Check.
Large number of postings regarding said announcement? Check

That means I simply must drop my two cents into the mix!

First off - A round of applause to all the GOG staff involved in bringing about this change, be the role a decision-maker or a view-point contributor to the internal discussions.

Personally, being from the US I was not affected but I recognized that many others were, and I sympathized with them. This announcement means less pain for them, so: Yay! Also, this shows that GOG listened to concerns expressed by a subset of their customers and took great pains to address them - this is generally rare in this day and age, and thus perpetuates the belief that if I ever have an issue with something they just may listen to me too!

The only part of this whole deal I am concerned with are the unforeseen consequences, specifically whether a situation could arise where GOG eating the cost becomes not only unprofitable but also causes them to cease being viable. Not having any numbers means I would not want to begin speculating, but I want you to know GOG: should the time ever come where you absolutely MUST choose between offering customers flat pricing versus remaining a going entity, you would have my vote for the latter. I recognize that you are in business to make money and as long as the DRM-Free pillar remains standing you will continue to get my money. Other customers you have may not like that or may have joined GOG for other reasons (including flat pricing), and that is their prerogative - DRM-Free is mine and as such I feel all other "principles" are secondary.

That being said, I hope such a situation never comes to pass and that all GOGers the world over can enjoy GOG the way they want to. And a toast to GOG to bid them to accomplish wildly-beneficial success for themselves and the GOG community with this new policy.
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WhiteElk: i'm just going to assume that there be stuff going down which i ain't privy to. i think that is a very safe assumption. But the more i learn of this the more i get a sense that something ain't right. Just a kernel of thought, not developed, just potential for being played Or just missing critical detail. But i got loads of goodwill towards GOG (earned by GOG) so i'm happy to extend blind trust further. Wait and see.
All I can say is wait and see, I guarantee the results will be interesting, in a good way :)
Wow, just read this! Amazing, thanks for sticking with us guys AND to your principles! You made the right choice!

Seems new games will still be regionalized but since you will make it up for us (store credit and what not) seems like a fair deal. Not that i buy new games that much anyway, but oh witcher 3 - now that's a different story. Expect my support there! ;)

Ok now, this means i can go back to my country, farewell Russia! :)
Post edited March 11, 2014 by nadenitza
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WhiteElk: i'm just going to assume that there be stuff going down which i ain't privy to. i think that is a very safe assumption. But the more i learn of this the more i get a sense that something ain't right. Just a kernel of thought, not developed, just potential for being played Or just missing critical detail. But i got loads of goodwill towards GOG (earned by GOG) so i'm happy to extend blind trust further. Wait and see.
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JudasIscariot: All I can say is wait and see, I guarantee the results will be interesting, in a good way :)
Right on, i do have trust that GOG still rocks. i have hopes and also worries over GOGs future -not all of it in selfish way. Most important of all, i do get the sense that you all know what your doing. lol the proof is in success thus far. GOG on!