Revolutionizing Global Game Payments: Steam's Transformative Impact
Valve introduces new regionalized USD pricing on Steam, aiming to make game prices fairer for gamers and more manageable for developers across various countries
Highlights
To tackle concerns regarding currency exchange rates and volatile pricing, Valve is introducing modifications to the pricing structure of Steam in Argentina and Turkey. Additionally, they are implementing regional pricing in a total of 25 countries.
Games in Argentina and Turkey will now be priced in US dollars, instead of pesos and liras respectively, aiming to ensure stability and provide consistent payment options. This change may disappoint gamers in these regions, as some have requested Valve to accept a wider range of currencies on Steam, rather than limiting the options. The new pricing model will come into effect on November 20, 2023.
Valve has announced changes to the pricing system on Steam in Argentina and Turkey, as well as in 25 other countries, effective from November 20, 2023. Currently, certain regions have benefited from having prices displayed in their local currency, which has resulted in some customers finding discrepancies in pricing across different parts of the world. This has led to instances where consumers take advantage of these differences by changing regions to get the best prices for games on Steam.
The pricing of games on Steam is influenced by factors such as currency exchange rates, taxes, and region-specific fees. This often results in significant fluctuations in prices from week to week in certain countries, making it challenging for developers to establish profitable and fair game prices for consumers. As a result, developers frequently have to adjust their Steam prices to accommodate the changing currency values in different countries. Additionally, Valve faces difficulties in keeping Steam's various payment methods up to date due to the complexities of regional pricing for video games.
Specifically addressing the issue of "exchange rate volatility" in Argentina and Turkey, Valve has announced that it will no longer offer games in pesos or liras, respectively. Instead, prices will be quoted in US dollars to maintain pricing stability. This change aims to make the process less complicated for both developers and consumers, while also allowing Steam to provide more consistent payment methods. However, this decision directly contradicts the desires of some gamers, who have been urging Valve to accept a wider range of currencies on Steam rather than fewer.
Starting from November 20, 2023, the new model will be implemented. Steam users who possess Argentine pesos or Turkish liras in their wallets will witness their balances being converted to US dollars at the prevailing exchange rate on that particular date. Similarly, any Steam subscriptions made in Argentine or Turkish currencies will be terminated, obliging users to reacquire them in US dollars.
Furthermore, the modification in pricing models for Argentina and Turkey will include them in Valve's recently introduced "regionalized USD pricing" program, alongside 25 other countries. As a result, game purchases on Steam for these regions will default to US dollars.
Countries with Steam’s New Regionalized USD Pricing
Although most gamers likely pay little attention to video game pricing beyond the $60 or $70 price tags of new releases, game companies face multiple considerations when determining sale prices. In addition to accounting for regional currencies, storefronts also need to factor in competitor pricing. This issue was highlighted a few years ago when Epic Games Store abruptly halted the sale of Hitman 3 due to Valve's "pricing parity" requirement. This requirement prevents developers from lowering a game's price on other platforms without doing the same on Steam.
Countries with Steam’s New Regionalized USD Pricing
LATAM-USD REGION
- Central America
- Belize
- El Salvador
- Guatemala
- Honduras
- Nicaragua
- Panama
- South America
- Argentina
- Bolivia
- Ecuador
- Guyana
- Paraguay
- Suriname
- Venezuela
MENA-USD REGION
- Middle East
- Bahrain
- Egypt
- Iraq
- Jordan
- Lebanon
- Oman
- Palestine
- Turkey
- Yemen
- North Africa
- Algeria
- Libya
- Morocco
- Tunisia
- Sudan
Source: Steam
