Valve Software, the creators of the digital video game distribution service Steam, has introduced changes to Steam’s regional price recommendation system, and it could have a big impact on game prices in several Southeast Asian countries.
These include Malaysia, the Philippines, Indonesia, Thailand and Vietnam, among others, although Singapore is not affected.
Valve shared these recent changes in a post on its platform and posted a video on YouTube to explain the changes to the tool.
The post mentioned that the tool was made as a “guide for developers who may not have the time or resources” to compare and contrast the 39 currencies that Steam supports.
The tool was updated to “make significant changes” so that these prices and conversions “remain current.”
According to Valve, the price increase is based on several dynamic factors that vary from region to region.
“Instead of simply tying prices to exchange rates, our price suggestion process digs deeper into the nuts and bolts of what players pay for the goods and services in their lives,” Valve said in the his statement
These factors include “purchasing power parity and consumer price indices” to help compare prices between regions with various economic sectors.
Users with access to the tool will also be able to regulate the timing of the price change and check for pricing errors.
“For example, if you accidentally entered a price of €500 when the rest of your coin prices are closer to €5,” he further explains.
That sounds pretty reasonable with fluctuating currencies and inflation rates varying between countries. However, Twitter user SteamDB have shared an example based on the tool’s recommendations that have alarmed many Steam users.
Calculations based on a price of US$59.99 have shown different price increases, with the lowest increase of 3% for Japan and South Korea and the highest price increase of 485% for the region argentina
Southeast Asian countries were also affected.
According to the aforementioned table, prices may increase by 80% in Indonesia, 40% in Malaysia, 37% in the Philippines, 57% in Thailand and 47% in Vietnam.
The regions with the biggest potential price increase were Turkey and Argentina, where region swapping is more common. Region swapping is when people use VPNs to buy Steam games in other countries where the prices are lower.
In the past, some developers have taken steps to combat region switching, such as Motion Twin, which raised the price of Dead Cells in Argentina and Turkey.
The only regions where price recommendations were not adjusted were Kuwait, Israel, Costa Rica, Singapore, the United Arab Emirates and the United States.
To be clear, this does not mean that the prices of all games on the platform will increase.
The price increase table is based only on Steam’s recommendations to developers and publishers. The final price will depend on the developers and publishers.
However, it may be fair to assume that several indie developers and newcomers to the industry who don’t have the resources to figure all this out will use the tool to help them price these games.
Anna is a freelance writer and photographer. She’s a gamer who likes RPGs and platformers, and is a League of Legends geek. She is also a foodie who loves a good cup of black coffee.
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