Most statistical analysis would struggle with finding data for average pricing across markets worldwide. Fortunately, Eebz has the ability to take the pricing average based on the market share of the retailer.
We can provide a way of weighting the price so that the effect of a major retailer like GAME or PlayStation, has a much greater impact on the average pricing than a small retailer.
With hundreds of retailers being tracked by Eebz, we decided to investigate the average game pricing of big titles for Xbox One and PS4. This data is used to forecast the results for new-gen consoles.
Is the exchange rate the issue?
This is the average pricing for physical and digital retailers across 6 markets, on PS4. Eebz estimates the selected retailers represent 96% of the market.
The pricing is amazingly consistent with one another. Although, Germany and Mexico seem to be outliers. Could this be due to the exchange rate?
What is happening in Mexico and Turkey?
Turkey is the lowest for Xbox which shows the exchange rate may not actually be the issue.
These small markets tracked by Eebz, have very different approaches for Microsoft and PlayStation. Is this a considered effort?
We know Xbox is especially successful in Mexico and the USA. But slightly less in Europe, which could be Microsoft's intention. However, physical retail could be selling more Xbox in Mexico because of the high online price.
On the contrary to what many other studies would conclude, Eebz shows that PlayStation is likely to be more successful. Due to the physical retail sales of PlayStation being counteracted by the artificially high average pricing of Microsoft.
The perspective of success between Xbox and Playstation is that retailers are selling more Xbox physically because it is expensive online and possible export issues for Microsoft.
USA pricing intended to be cheaper?
The common assumption in the video game industry is associated with the USA's low pricing. Eebz's ability to track America's retailers shows they are indeed on the cheaper side. Although, they are not the cheapest.
Are Microsoft sales in the USA being artificially lifted by people using this market as their primary store? This is not happening with PlayStation as there is not a huge price variance.
Although, the low price in the USA could be driving the current Microsoft store sales, proving that it is a good thing. Local stores are a better reflection of what is happening in the US market.
So...who really is more expensive?
In conclusion, Xbox is more expensive than PlayStation in terms of average game pricing. This forecasts the pricing for big titles on the new-gen consoles.
However, it would be interesting to investigate the high pricing in Germany. As the market, is consistently more expensive than the UK, in regards to game pricing. Is this just an exchange rate variance? France and Sweden would be a good comparative to uncover.
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