UK shops promise to freeze game prices

By Wesley Yin-Poole Published 2 December, 2010

Despite incoming VAT rise.

UK shops have promised gamers they will freeze the price of videogames despite the incoming VAT hike.

VAT will rise 2.5 per cent on 4th January, but shops have told MCV they plan to swallow the cost in order to remain competitive.

However, shops have called on publishers to help them do it – they want the likes of EA, Ubisoft and 2K to sell them games at a lower price.

According to MCV, though, publishers aren't listening.

And some are dismissive of retailer concern. One publisher called it 'panic', saying: "Stores were more than happy to not change prices when VAT was cut – they surely understand this situation works both ways?"

Most PlayStation 3 and Xbox 360 games released in the UK come with a £49.99 RRP, but shops usually knock money off.

There are some exceptions: Activision raised the RRP of phenomenally successful shooter Call of Duty: Black Ops by a fiver to £54.99.

Picture of Wesley.

About Wesley Yin-Poole

Wesley is Eurogamer's news editor. He likes news, interviews, and more news. He also likes Street Fighter more than anyone can get him to shut up about it.

Read more articles from Wesley by visiting the Wesley Yin-Poole archive page.

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Comments (21) Latest comment 1 year ago

Comments for this article are now closed, but please feel free to continue chatting on the forum!

  • RobPulsar #1 1 year ago

    Whilst I'm sure all gamers will welcome this news, I seem to remember that they didn't reduce prices when VAT dropped to 15% in 2009. Seems like a fair deal then.

    I wonder how many shops will bother to change all of their point of sale pricing to accomodate the new VAT rate? Can't be a cheap exercise.

  • CaptainKid #2 1 year ago

    "According to MVC, though, publishers aren't listening."

    Duuh.
    Retailers already take 2/3 of the sales price.
    Bunch of vultures whining about 2.5%.

    Oh well, it's not like I actually pay for my games anyway, except for the occasional online game.

  • SClaw #3 1 year ago

    "However, shops have called on publishers to help them do it – they want the likes of EA, Ubisoft and 2K to sell them games at a lower price. According to MVC, though, publishers aren't listening."

    Read as: "We are putting the prices up but blame them!"

  • altitude2k #4 1 year ago

    "Stores were more than happy to not change prices when VAT was cut – they surely understand this situation works both ways?"

    A very good point, well made.

  • 00.00.01 #5 1 year ago

    What RobPulsays said.
    The reduction in VAT was ment to increase consumer-spending. Since virtually no business in the UK decided to 'forward' these deductions to end-customers but keep the 2.5% pure profit themselves they shouldn't be boasting for 'not implementing' the announced VAT rise.
    .
    Somehow I fear that the rise will be added to our end-prices because the businesses have to pay these 2,5% too. End-consumer gets fU£$^d, as allways. A shame that they can get away with this.

  • natashaspice #6 1 year ago

    Well even if they don't theirs fierce competitions online E.G shopto

  • munki83 #7 1 year ago

    I cant blame the publishers. Retail shops are selling titles second hand for large profits which the publishers woont see and they also want the publishers to foot the bill for the VAT rise. I'd tell them a flat no aswell

  • slippysloppy #8 1 year ago

    When the VAT dropped to 15% retailers seemed put their prices down briefly, before putting the prices back up before the increase to 17.5%. Game prices also seem to have gone up in advance of the next increase, I assume in preparation for the rise to 20%. I'd therefore be quite disgusted if prices were to rise again as I'm already buying fewer games due to the recent prices hikes.

  • Xardan #9 1 year ago

    Wait wait let me get this right....VAT is rising to 20%?!

    Okay thats it im moving abroad.

  • Ryze #10 1 year ago

    Put the prices up if you must. We'll all just wait for them to come right back down again.

  • Augmentation #11 1 year ago

    Is it too late to say that the prices will be frozen like the weather?

    ... I really wouldn't know; Australia has worse prices (although they are stable) and hotter weather.

  • Ignatius_Cheese #12 1 year ago

    As long as they keep dropping to sub-£20 a couple of weeks after launch then all is still well :o)

  • Haerger #13 1 year ago

    'Wait wait let me get this right....VAT is rising to 20%?!

    Okay thats it im moving abroad. '

    VAT abroad are higher than in UK.

  • TeaFiend #14 1 year ago

    The games cost the same now as before the VAT decrease anyway. Nice try retailers, nice try.

  • CaptainKid #15 1 year ago

    @Happyhaunt
    You are right I did read the "retailers take 2/3 of the sales price" part in an article, not on the internet but in a gaming magazine.

    I think its true look at the differences between prices when comparing stores.
    I bought COD for €42 while other stores sell it for €60!

  • FenderMaster #16 1 year ago

    considering retailers are cannabilising new game sales with their second hand/trading, and publishers aren't getting a cut, i'm sure it's difficult to sympathise...

  • lambtron #17 1 year ago

    Traditionally speaking retailer margin has been around 40%. That is ignoring other ridiculous constraints they place on publishers such as forcing them to buy back games that remain unsold, at full price. With the competition from online retailers and supermarkets I don't know if this is still the case.

    Anyway, the margin on new games is largely irrelevant. Care to hazard a guess what the margin on used games is HappyHaunt? I notice you conveniently forgot about that...

  • Marshall2008 #18 1 year ago

    @Haerger

    VAT abroad may very well be higher than the current UK rates but the combined taxes we pay in the UK on Fuel, Road Fund, Council Tax, import tax etc etc dwarf foreign taxes.
    Edited by Marshall2008 at 02/12/10 @ 16:09

  • SG #19 1 year ago

    We're looking at around a £1.25 difference or less. Hardly panicking over.

  • Gammerz #20 1 year ago

    Lots of online sales are from the Channel Islands (e.g. Jersey), anyway, who aren't subject to British VAT laws, so the price won't be affected.

  • Sevens #21 1 year ago

    Gee, who would've thought that competition in retail is good for (lower) prices. Ah whatever, total digital distribution can't come soon enough -- for publishers and remarkably lazy people, that is.