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Hey Goggers;

As many of you know, we announced on last Friday that we are going to introduce regional pricing for 3 new games coming up on GOG.com soon. Looking at the amount of reactions (over 3,500 comments at this very moment), it is obvious that this change is making many of you guys worried. We must have failed to clearly explain why our pricing policy for (some) newer games will change and what this means as a matter of fact for our PC & MAC classic games, which account for over 80% of our catalogue.

To be honest, our announcement was a bit vague simply because our future pricing policy is not 100% set in stone yet and we were just worried to make any promises before it was. You know, GOG.com has been growing quickly (thanks to you!), and the more we grow, the more we are worried to make some of you guys disappointed. This is why we were so (over-)cautious with our announcement.

We should have just been upfront about why we've made these changes and what they mean for us in the future and what we're planning. So let's talk. To be clear: what I'm talking about below is our plan. It's a plan that we believe we can accomplish, but while it's what we want to do with GOG, it may change some before it actually sees the light of day. Please don’t blame me for talking open-heartedly today and telling you about the plans and pricing policy we want to fight for and eventually achieve. The below plans aren't sure. The only guarantee I can give you is that we’ll do our best to fight for gamers while still making sure GOG.com as a whole grows (because well, we still want to be around 50 years from now, you know!). So, enough for the introduction, let’s get things started.

Why does GOG.com need to offer newer games at all?

We've been in business for 5 years now, and we've signed a big percentage of all of the classic content that can be legally untangled. There are still some big companies left we're trying to bring into the GOG.com fold, like LucasArts, Microsoft, Take2 and Bethesda, but what classic titles will we sign in the future once we have those partners on-board? We need to sign newer games or else just fire everyone and keep selling the same limited catalog. Either we bring you “not so old” releases from 2010+ or brand-new AAA titles, because these will become classic games tomorrow. It’s as simple as that.

Also, well, we want to expand beyond just classic games, hence the fact we have been offering you brand-new indie releases for almost 2 years now. Why expanding? Well, obviously, because the more games we sell, the more legitimacy we have on the market and the more likely it is that we can achieve our mission: making all PC & MAC video games 100% DRM-free, whether classic or brand-new titles.

To be straightforward (excuse my French):DRM is shit-- we'll never have any of it. It treats legitimate customers like rubbish and pirates don't have to bother with it. It's bad for gamers, and it's also bad for business and our partners. We want to make it easy and convenient for users to buy and play games; rather than give piracy a try. Happy gamers equals a healthy gaming industry; and this is what we fight for. Anyway, I am sure you well know our opinions about DRM.

To make the world of gaming DRM-free, we need to convince top-tier publishers & developers to give us a try with new games, just like they did with classic games. We need to make more case studies for the gaming industry, just like we successfully did back in 2011 with The Witcher 2. It was our first ever 100% DRM-free AAA day-1 release. GOG.com was the 2nd best-selling digital distribution platform worldwide for this title thanks to you guys, despite having regional prices for it. We need more breakthroughs like this to be able to show all the devs and publishers in our industry that DRM-free digital distribution is actually good for their business and their fans. And when I say breakthroughs, I am talking about really kick-ass games, with a potential metacritic score of 85% or more, AA+ and AAA kind of titles.

And this is exactly why we signed those 3 games we told you about last Friday. We believe those 3 games can be massive hits for hardcore gamers, that they can help us spread the DRM-free model among the industry for newer games and we did our best to convince their rights holders to give GOG.com a try. One of those games, as you see already, is Age of Wonders 3. We're planning more titles even beyond these first 3 soon.

Alright, but why is regional pricing needed for those (only 3 so far!) newer games then?

First of all, you have to be aware of an important fact when it comes to newer games: GOG.com cannot really decide what the prices should be. Top-tier developers and publishers usually have contractual obligations with their retail partners that oblige them to offer the game at the same price digitally and in retail. When they don’t have such contractual obligations, they are still encouraged to do so, or else their games might not get any exposure on the shelves in your favorite shops. This will change over time (as digital sales should overtake retail sales in the near future), but as of today, this is still a problem our industry is facing because retail is a big chunk of revenue and there’s nothing GOG.com can do to change that. We need to charge the recommended retail price for the boxed copies of the games in order for developers (or publishers) to either not get sued or at least get their games visible on shelves. You may recall that our sister company CD Projekt RED got sued for that in the past and we don’t want our partners to suffer from that too.

On top of that, you have to know that there are still many top-tier devs and publishers that are scared about DRM-free gaming. They're half-convinced it will make piracy worse, and flat pricing means that we're also asking them to earn less, too. Earn less, you say? Why is that? Well, when we sell a game in the EU or UK, VAT gets deducted from the price before anyone receives any profit. That means we're asking our partners to try out DRM-free gaming and at the same time also earn 19% - 25% less from us. Other stores, such as Steam, price their games regionally and have pricing that's more equitable to developers and publishers. So flat pricing + DRM-Free is something many devs and publishers simply refuse. Can you blame them? The best argument we can make to convince a publisher or developer to try DRM-Free gaming is that it earns money. Telling them to sacrifice income while they try selling a game with no copy protection is not a way to make that argument.

Getting back to those 3 new upcoming games coming up. The first one is Age of Wonders 3, which you can pre-order right now on GOG.com. The next 2 ones will be Divine Divinity: Original Sin and The Witcher 3. We’re very excited to offer those games DRM-free worldwide and we hope you’ll love them.

Still, we know some countries are really being screwed with regional pricing (Western Europe, UK, Australia) and as mentioned above, we’ll do our very best, for every release of a new game, to convince our partners to offer something special for the gamers living there.

And don’t forget guys: if regional pricing for those few big (as in, “AA+”) new games is a problem for you, you can always wait. In a few months. The game will be discounted on sale, and at 60, 70, or 80% off, the price difference will be minimal indeed. In a few years it will become a classic in its own right, and then we have the possibility to to make it flat-priced anyway (read next!) The choice is always yours. All we are after is to present it to you 100% DRM-free. We are sure you will make the best choice for yourself, and let others enjoy their own freedom to make choices as well.

So, what is going to happen with classic games then?

Classic content accounts for about 80% of our catalog, so yes, this is a super important topic. We've mentioned here above that we can’t control prices for new games, but we do have a lot of influence when it comes to classic games. GOG.com is the store that made this market visible and viable digitally, and we're the ones who established the prices we charge. We believe that we have a good record to argue for fair pricing with our partners.

So let's talk about the pricing for classics that we're shooting for. For $5.99 classics, we would like to make the games 3.49 GBP, 4.49 EUR, 199 RUB, and $6.49 AUD. For $9.99 classics, our targets are 5.99 GBP, 7.49 EUR, 349 RUB, and $10.99 AUD. This is what we’ve got in mind at the moment. We’ll do our best to make that happen, and we think it will. How? Well, we have made our partners quite happy with GOG.com's sales for years - thanks to you guys :). We have created a global, legal, successful digital distribution market of classics for them. This market didn't exist 5 years ago. By (re)making all those games compatible with modern operating systems for MAC and PC, we've made forgotten games profitable again. When it comes to classic games, we can tell them that we know more about this market than anyone. :) Being retrogaming freaks ourselves, we know that 5.99 EUR or GBP is crazy expensive for a classic game (compared to 5.99 USD). We have always argued that classic games only sell well if they have reasonable prices. Unfair regional pricing equals piracy and that’s the last thing anybody wants.

What’s next?

We will do our very best to make all of the above happen. This means three things:

First, we will work to make our industry go DRM-free in the future for both classic and new games (that’s our mission!).

Second, we will fight hard to have an attractive offer for those AA+ new games for our European, British and Australian users, despite regional pricing that we have to stick to.

Third, we will switch to fair local pricing for classic games, as I mentioned above.

TheEnigmaticT earlier mentioned that he would eat his hat if we ever brought DRM to GOG.com. I'm going to go one step further: by the end of this year, I'm making the promise that we will have converted our classic catalog over to fair regional pricing as outlined above. If not, we'll set up a record a video of some horrible public shaming for me, TheEnigmaticT, and w0rma. In fact, you know what? Feel free to make suggestions below for something appropriate (but also safe enough that we won't get the video banned on YouTube) so you feel that we're motivated to get this done quickly. I'll pick one that's scary enough from the comments below and we'll let you know which one we're sticking to.

I hope that this explanation has helped ease your worry a bit and help you keep your faith in GOG.com as a place that's different, awesome, and that always fights for what's best for gamers. If you have any questions, comments or ideas, feel free to address them to us below and TheEnigmaticT and I will answer them to the best of our abilities tomorrow. We hear you loud and clear, so please do continue sharing your feedback with us. At the end of the day GOG.com is your place; without you guys it would just be a website where a few crazy people from Europe talk about old games. :)

I end many of my emails with this, but there's rarely a time to use it more appropriately than here:

“Best DRM-free wishes,

Guillaume Rambourg,
(TheFrenchMonk)
Managing Director -- GOG.com”
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Selderij: Because it would be too complicated for us to choose a currency at checkout, hurr durr.
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Ichwillnichtmehr: That excuse really does make me wonder if they are just trolling us.
GOG likes to keep things simple and I think this is a case where they haven't thought it through to the end. Also let's not forget they are not a huge operation in terms of HC.


The more I think on this the more I see it as great solution:
A: Every game has fixed prices in whatever currencies GOG serves - different fields in the DB basically as agreed with the publisher.


Now let's think of the classic games:
B: All prices remain equivalent (within some % range, but that's going to be mostly irrelevant)
C: Dropdown for currency selection in the checkout, with predefined option based on region / IP (whatever method they are planning to implement really)

Possible downsides - the interface will have to be more robust, the sales reporting will be more complex but theoretically speaking nothing that cannot be automated.
Upsides - customer empowerment in particular for countries where the currency is not served, marketing prices less likely to change as you can pretty much wait for the community to highlight huge FX swings which distorted the market, and you can even say this is Worldwide Pricing 2.0 with Worldwide Prices rather than Worldwide Price which is at least as fair as what we have today - just giving more options.


Then for regionaly priced games (in the sense of pricing discrimination due to PP considerations or distribuion contracts or whatever):
D: Lock the appropriate options from the purchase interface as defined by the region / IP determination method.

Downsides are same as above. The mixed bag is getting DRM free but without the equivalent Worldwide Prices. An upside would be you can actually leave the higher prices available, and customers can use that as a PWYW mechanism, rewarding you if they want.
Well . I was supposed to preorder AoW long before gog announced this but i will not buy the game at this prize.
Im not gonna stop buying classics as long as the prize sounds fair for me.
I want to believe gog has nothing to do with the new game prizes and that we should blame it on the publishers but
im just gonna vote with my wallet here and not buy the game even if gog would have been my first choice(before all this happened). Im hoping the publishers notice game/s not selling good atleast in the EU region because prize is the only one to blame if sales are lower comparing to other regions
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GOG.com: Hey Goggers;

So let's talk about the pricing for classics that we're shooting for. For $5.99 classics, we would like to make the games 3.49 GBP, 4.49 EUR, 199 RUB, and $6.49 AUD. For $9.99 classics, our targets are 5.99 GBP, 7.49 EUR, 349 RUB, and $10.99 AUD. This is what we’ve got in mind at the moment.
I don't mind local pricing as long as I'll be able to choose the currency I pay in, not like some other online store did recently by setting currency according to a region the users is from (trying to charge me in EUR even though that's not my currency and I loose on currency exchange charges)

For example: my local currency is PLN, my card is in USD (as I pay for almost all transactions in that currency),
the thing is that when I'm forced to pay for something in a different currency then the amount is converted to USD (at the rate not of the time of purchase but at least few days later as it "settles" which can be higher or lower by then) + about 3~5% for VISA and bank for making the currency exchange AND then converted AGAIN, this time to PLN...

That's something that is hardly acceptable (pushing the cost of currency exchange onto customers) so if there is a local pricing to be introduced I'd very much like to be given an option to choose in what currency I want to pay in, for example: if the local price if 4.49 EUR I'd like to pay 6.61 USD (quick google EUR->USD query just to show what I mean)

EDIT:
while I was writing Brasas posted about the currency selector in the checkout - that's all I ask for;-)
Post edited March 01, 2014 by ghibley
i'm spanish, i understand that here in europe sometimes prices are higher because there are some additional costs due to localization, promotion, warranty laws... however, none of these matters for gog when we are talking about classic games.

i used to think of gog as a fair game dealer, that "no region pricing policy" made me forgive some drawbacks that buying a game in gog has (like games not traduced to spanish when they were in release). not again. now i'll think of gog as any other company that just wants my money... no traduction, no money for you, i don't care about license problems involved, if you don't give me a localized product i'll just look elsewere.
Post edited March 01, 2014 by narrick
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TheEnigmaticT: For the majority of people who use any website, complicating the checkout process is a surefire way to make them not want to buy.
So the information "The price is 23.99 but you will be charged an equivalent of 32.99 in dollars" isn't confusing as hell? I wonder if it's even legal, to display one price and charge with another.

I don't care if that's an equivalent - the price on one's bank statement should be the same as the price stated on the product page for it to be fair.

And the sole "advantage" of having regional pricing is that one is charged with his local currency (for many of them it's not of course...), not to display the price in euros and charge in dollars anyway.

This half-assed solution of yours is pretty lame and confusing.
Post edited March 01, 2014 by keeveek
TET said that they haven't decided yet about how to handle non eurozone countries for the classics. Do there still is a chance that we will stay with USD. As for regionally fucked up games, I certainly won't buy any.
I am another long time user with over one hundred games bought in GOG. I had supported GOG against Steam, although I have a few games in there also (because humble-bundle mainly). This regional price is a bad idea all the way and you are now seeing its initial effect. It would get worse.

The free game thing only hurt your position because giving it you accept that you are doing things the wrong way , and you are probably losing more money doing that than doing it the right, the fair price that is what most of user demands. Nothing less, nothing more (We dont want freebies, just the fair price)

All that said. Im okay with having regional prices on really new games (lets say 6-12 months), because the reasons you said earlier, the games are also in physical stores, so you can't downprice them in this time frame. But after that time, when the game is no longer in the "HOT" section and closer to "opportunities" then you should be able to charge the price you would want (i.e. the flat price in USD for everyone) because physical shops are doing the same (They discount games one year old as they seem fit)

And thats where things start going crazy... If you are doing this to attract more new AAA and AA+ games, why to put regional prices on all the games, including classic? It looks like an excuse to me and lots other users. You have lots of options as letting the users choose the currency used to buy a game, and this is maybe complicated for people who only buy in physical stores but not for people who buy online regularly as most of your user base are. As others have said you could put as standard option the currency of your country (so is easy for "newbies") but allowing to change it, when the game is 1 year old, for example. And you could even add an option to tip the game and overpay it, as humble bundle have proved sometimes people are willing to pay more, just for the sake of it.

I know that change of currency in the middle of a purcharse is not a thing you can program and get it ready in 2 days, but is also not a very complex thing and you will have 6+ months until you really need it (when age of wonders 3 get old enough) so you could do it if you really want it.

And there is other options, although I like them less, like the GOG wallet or the daily prices changes, but the point is that there is plenty of options avaliable for GOG to avoid the regional prices issue that you said you will mantain.

So my suggestion is to GOG to reconsider its position and to allow regional prices only for limited time (6 months ideally but 12-18 months at most) during the launch of the game, and then when the game is old enough publishers would have not objection to go back to a worldwide price in USD for everyone, because the game would have surpassed its "physical store" phase. This is a compromised that Im sure most of your user base will assume, but to go to regional prices in all the catalog for just get a few AAA games is selling itself too cheap. GOG deserves it better
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TheEnigmaticT: For the majority of people who use any website, complicating the checkout process is a surefire way to make them not want to buy.
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keeveek: So the information "The price is 23.99 but you will be charged an equivalent of 32.99 in dollars" isn't confusing as hell? I wonder if it's even legal, to display one price and charge with another.

I don't care if that's an equivalent - the price on one's bank statement should be the same as the price stated on the product page for it to be fair.

And the sole "advantage" of having regional pricing is that one is charged with his local currency (for many of them it's not of course...), not to display the price in euros and charge in dollars anyway.

This half-assed solution of yours is pretty lame and confusing.
So like if I buy an euro priced game it still gets converted to dollars and there that same fee what has always been?

I'm basically just repeating what you said but you used too many fancy words and didn't really catch that and I'm trying to understand. =D

If so that is indeed lame.
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Antimateria: So like if I buy an euro priced game it still gets converted to dollars and there that same fee what has always been?

I'm basically just repeating what you said but you used too many fancy words and didn't really catch that and I'm trying to understand. =D

If so that is indeed lame.
That's how I understand this: [see pic related]

Even if it's a temporary solution, it's still lame and shouldn't ever exist.
Attachments:
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Ichwillnichtmehr: That excuse really does make me wonder if they are just trolling us.
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Brasas: GOG likes to keep things simple and I think this is a case where they haven't thought it through to the end. Also let's not forget they are not a huge operation in terms of HC.

The more I think on this the more I see it as great solution:
A: Every game has fixed prices in whatever currencies GOG serves - different fields in the DB basically as agreed with the publisher.

Now let's think of the classic games:
B: All prices remain equivalent (within some % range, but that's going to be mostly irrelevant)
C: Dropdown for currency selection in the checkout, with predefined option based on region / IP (whatever method they are planning to implement really)

Possible downsides - the interface will have to be more robust, the sales reporting will be more complex but theoretically speaking nothing that cannot be automated.
Upsides - customer empowerment in particular for countries where the currency is not served, marketing prices less likely to change as you can pretty much wait for the community to highlight huge FX swings which distorted the market, and you can even say this is Worldwide Pricing 2.0 with Worldwide Prices rather than Worldwide Price which is at least as fair as what we have today - just giving more options.

Then for regionaly priced games (in the sense of pricing discrimination due to PP considerations or distribuion contracts or whatever):
D: Lock the appropriate options from the purchase interface as defined by the region / IP determination method.

Downsides are same as above. The mixed bag is getting DRM free but without the equivalent Worldwide Prices. An upside would be you can actually leave the higher prices available, and customers can use that as a PWYW mechanism, rewarding you if they want.
Funny. People don't understand how pointless their ideas are. They don't care, how hard is to get this? They don't want to loose their customers and therefor they use nice words to say basically the same on and on: "we made a decision, eat what we feed!". Gog isn't interested in some other way to handle this, they don't would step back and say "Ok, this was a bad move and a bad idea either". They only care to increase their business and thats fine, it's up to you if you show them the middle finger or if you bow down let them treat you with disrespect, because this is exactly happen. You only see the calm words but not what they are telling you. There is no compromise, there is no interest in finding a solution which would even partially hold true to their oh so holy core principals. And this is only the beginning, it's the same over and over again. They don't care, they don't care fr the guys who can't afford the prices for new titles and they don't care for the people who believed them when they promised to be the nicer company caring about fairness and being best friends with us gamers.
So deal with it. Gog will loose customers by this stunt but the facepalm part is how enough people will bow before them without understanding how they got betrayed. Yes, betrayed. It is business if some tells a price for a good and you accept it, but they went another road. They tried to befriend with their customers, told them how they understand them and how they are the good guys, how the others are bad and made mockery of business practices of other companies, told the customers how they try to change the game in their favor. So, how much do you need to get it into your head that you get fucked right now? I made my decision, make your own. But it's pathetic to see people making a decision without even understanding the facts.
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Selderij: Because it would be too complicated for us to choose a currency at checkout, hurr durr.

That excuse really does make me wonder if they are just trolling us.
no man, they know we are stupid, we just don't know it. Too many options will be too hard for our 2 brain cells. Please refer to the video again :)
Post edited March 01, 2014 by kaileeena
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Brasas: GOG likes to keep things simple and I think this is a case where they haven't thought it through to the end. Also let's not forget they are not a huge operation in terms of HC.

The more I think on this the more I see it as great solution:
A: Every game has fixed prices in whatever currencies GOG serves - different fields in the DB basically as agreed with the publisher.

Now let's think of the classic games:
B: All prices remain equivalent (within some % range, but that's going to be mostly irrelevant)
C: Dropdown for currency selection in the checkout, with predefined option based on region / IP (whatever method they are planning to implement really)

Possible downsides - the interface will have to be more robust, the sales reporting will be more complex but theoretically speaking nothing that cannot be automated.
Upsides - customer empowerment in particular for countries where the currency is not served, marketing prices less likely to change as you can pretty much wait for the community to highlight huge FX swings which distorted the market, and you can even say this is Worldwide Pricing 2.0 with Worldwide Prices rather than Worldwide Price which is at least as fair as what we have today - just giving more options.

Then for regionaly priced games (in the sense of pricing discrimination due to PP considerations or distribuion contracts or whatever):
D: Lock the appropriate options from the purchase interface as defined by the region / IP determination method.

Downsides are same as above. The mixed bag is getting DRM free but without the equivalent Worldwide Prices. An upside would be you can actually leave the higher prices available, and customers can use that as a PWYW mechanism, rewarding you if they want.
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wintermute.: Funny. People don't understand how pointless their ideas are. They don't care, how hard is to get this? They don't want to loose their customers and therefor they use nice words to say basically the same on and on: "we made a decision, eat what we feed!". Gog isn't interested in some other way to handle this, they don't would step back and say "Ok, this was a bad move and a bad idea either". They only care to increase their business and thats fine, it's up to you if you show them the middle finger or if you bow down let them treat you with disrespect, because this is exactly happen. You only see the calm words but not what they are telling you. There is no compromise, there is no interest in finding a solution which would even partially hold true to their oh so holy core principals. And this is only the beginning, it's the same over and over again. They don't care, they don't care fr the guys who can't afford the prices for new titles and they don't care for the people who believed them when they promised to be the nicer company caring about fairness and being best friends with us gamers.
So deal with it. Gog will loose customers by this stunt but the facepalm part is how enough people will bow before them without understanding how they got betrayed. Yes, betrayed. It is business if some tells a price for a good and you accept it, but they went another road. They tried to befriend with their customers, told them how they understand them and how they are the good guys, how the others are bad and made mockery of business practices of other companies, told the customers how they try to change the game in their favor. So, how much do you need to get it into your head that you get fucked right now? I made my decision, make your own. But it's pathetic to see people making a decision without even understanding the facts.
Well all you said is true. And especially all TEnigmaticTs comments yesterday confirmed that the decision is fixed for regional fair pricing in each country. The prices for games in dollars won't be visible anymore when we get local prices in euros - confirmed by TEnigmaticT - so no transparency anymore. Nobody is going to know anymore if he pays that same as everybod else.
Post edited March 01, 2014 by Matruchus
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Antimateria: So like if I buy an euro priced game it still gets converted to dollars and there that same fee what has always been?

I'm basically just repeating what you said but you used too many fancy words and didn't really catch that and I'm trying to understand. =D

If so that is indeed lame.
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keeveek: That's how I understand this: [see pic related]

Even if it's a temporary solution, it's still lame and shouldn't ever exist.
This deal seems that it just doesn't stop giving. =D

If it was truly normal regional pricing they should eventually add some option to pay with normal net banks I guess.
Well Steam doesn't have that either.
I've not spoken up thus far, considering GOG to be far more about DRM-free than worldwide the same price, but I was definitely shocked by the prices in Africa:

Normal / Deluxe

Africa
-------
Algeria: $54.99/$61.99
Egypt: $39.99/$44.99
Ghana: $54.99/$61.99
Kenya: $54.99/$61.99
Morocco: $54.99/$61.99
Nigeria: $54.99/$61.99
Senegal: $54.99/$61.99
South Africa: $54.99/$61.99

I got this from Fakum12's topic 'Post your regional price for AoW3'

That's some of the world's poorest countries there and they dare charge 54,99? Wouldn't it be fairer if prices were lower there than in the US, like in Russia: $16.99/$19.99. That would be fair pricing!
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Matruchus: Well all you said is true. And especially all TEnigmaticTs comments yesterday confirmed that the decision is fixed for regional fair pricing in each country. The prices for games in dollars won't be visible anymore when we get local prices in euros - confirmed by TEnigmaticT - so no transparency anymore. Nobody is going to know anymore if he pays that same as everybod else.
Gets even better: some people are running around like squirrels "Oh gosh, oh gosh, someone of the staff talked to us!". Omfg, it's their job esp. to keep you calm and there is a reason why there aren't many real answers anyway. They don't keep much time here in the thread so things don't escalate and because it would get quite obvious how little they have to say. There are no answers, there is no compromise, there is nothing to take a new course. The few posts are only there to quench the fire and not to explain the real issues. Some parts of the posts are outright lies, the part with the "the shop will get to complicated" is even an insult. However, wanted to make this point also. But now good bye for real. ;) I'm keeping my account for my games, but I make no business with got any further and I don't participate in the community. Good luck you all, no matter which decision you find for your own. :)