A video game that costs one price in the United States may carry a very different price tag in Brazil, India or Japan. For gamers shopping on Steam, these differences can be striking, even when they are purchasing exactly the same title. Behind those price tags lies a complex set of decisions by publishers seeking to attract customers in markets with different incomes, currencies and economic conditions. A new study sheds light on how game companies navigate these challenges, revealing four distinct approaches to setting prices across international markets.
The researchers examined pricing data collected between August and September 2023 for games sold on Steam, one of the world’s leading digital gaming platforms. Their analysis covered eight markets: Brazil, China, France, the United Kingdom, India, Japan, South Korea and the United States. By comparing publishers’ actual list prices with Steam’s recommended regional prices, the study sought to understand how closely companies follow the platform’s pricing guidance and how their decisions differ from one country to another.
The findings revealed four broad pricing strategies. Some publishers closely followed Steam’s recommended regional prices, relying on the platform’s guidance to maintain a relatively consistent approach across markets. Others made modest adjustments, allowing for greater flexibility while remaining near the suggested benchmarks. A third group adopted a more aggressive strategy, charging higher-than-recommended prices in certain emerging markets. The fourth group showed the greatest variation, setting substantially different prices depending on both the country and the individual game. This suggests that publishers do not simply choose between a single worldwide price and fully customised regional pricing, but instead employ a range of approaches.
The differences were particularly noticeable in Brazil and India, where average game prices reached approximately 128% and 130% of Steam’s recommended levels, respectively. Both countries also displayed relatively high levels of price variation, indicating that publishers were taking markedly different approaches to these markets. Another notable finding concerned publishers affiliated with major global gaming companies. These businesses were especially likely to fall into the fourth category, where pricing varied most significantly across countries and individual titles. The results highlight how even large, internationally established publishers may favour highly differentiated pricing rather than a uniform global strategy.
The study offers a revealing look at the increasingly complicated economics of selling digital products worldwide. Although online distribution allows companies to reach customers across borders with relative ease, determining the right price remains a challenge. Publishers must consider local purchasing power, exchange rates, taxes and competitive conditions, while recognising that consumers can readily compare prices between regions. Ultimately, the findings suggest that international game pricing is far from standardised. Rather than following one universal formula, publishers combine common pricing benchmarks with market-specific adjustments, producing a global marketplace where the same game can carry considerably different price tags.
More information: Tomohiro Murakami et al, Strategic Patterns of Cross-Border Platform-Mediated Pricing: Evidence from Global Game Distribution, Journal of International Marketing. DOI: 10.1177/1069031X261480691
Journal information: Journal of International Marketing Provided by University of Tsukuba