Introduction first as it’s my first official dive into the forums, I’m Mattias Rengstedt, new Head of Sales at Paradox and I’m jumping into this thread to give you a heads up that we’re planning price adjustments for some currencies that will take place on the 1st of February.
As we’ve discussed before in this thread, we’re constantly working to get better at adjusting our regional prices. Currencies fluctuate, markets evolve, and we want to keep a good balance between fair prices for all of our players and a sound pricing strategy for our business. You can read some of the answers above in this thread to get a sense of how we approach this topic. Today, I want to cover and share as transparently as possible what we’re planning to do in February next year.
First, it’s worth noting that moving forward, it’s our intention to have an expected yearly regional price adjustment happening in the beginning of the year. Some years we might not need to do it and some years it might be more significant than others, but overall we think it’s good practice to have a recurring timeframe in which we implement pricing changes every year.
Earlier this year, we had some moderate changes for pretty much all currencies outside of the US Dollar, European Euro and British Pound. This allowed us to catch up on some areas where we were off from our benchmarks. Next year we have a more narrow and surgical approach. Our goal is not to raise prices across the board to catch up with general inflation, but rather to identify specific currencies where we feel we have issues to fix, and address those.
In practice there are two specific currencies where we’re very far behind our benchmark of what our prices should be: Argentinian Peso and Turkish Lira. For both of those currencies, we’ll raise our local prices significantly (you can anticipate a more than 300 % increase). It’s worth noting that some of these changes have already been taken into account for new games. Victoria 3 has for example been released with updated pricing (so no change for that specific title), but expect other titles to see adjustments according to our new regional price matrix. We understand that this is a very steep change for players in those countries. The reasoning behind this is not only that we are severely off our benchmark, but also that these two currencies have become too disconnected from other markets over time. This has created a significant price gap to other currencies, which has led to regional price abuse that generates issues for our business that we need to address.
For other currencies, we’ll have more limited changes to catch up with our benchmark. There will be some moderate increases to the Brazilian Real, Colombian Peso, Indian Rupee, Indonesian Rupiah, Kazakhstani Tenge and Russian Ruble.
Furthermore, there will be smaller increases to the British Pound, Norwegian Krone, Polish Zloty and Swiss Franc.
Lastly, for some currencies, our benchmarks show that we are currently above where we think we should be, so we’ll reduce prices there to be in-line with our price strategy. The currencies affected are the Peruvian Sol, Costa Rican Colon and Singapore Dollar, where there will be moderate price decreases. More often than not when we adjust prices, it’s going to be an increase, but there will sometimes also be cases where we adjust this the other way around.
Any currencies that have not been mentioned here will remain as they are and will not see any price adjustments on the 1st of February.
It’s difficult to give exact numbers of the adjustments for each currency as they vary across price points and SKUs, but if you have specific questions, I’ll do my best to answer them separately!
