For those not aware of the Big Mac Index, here’s a definition:
The Big Mac index is an informal way of measuring whether one currency is at the theoretically correct exchange rate with another currency. The measure assumes that the theory of purchasing power parity (PPP) holds.
So, basically, the Big Mac Index tells us a lot about the relative purchasing power of local markets, and indeed, what is an acceptable price for that product in that market.
Pretty much every day I think about how games are overpriced here in New Zealand. Normally games debut at NZ$99 and an astronomical $119 or $129 for Xbox 360 and Playstation 3 games.
So, I decided to apply the Big Mac Index (BMI) to game prices. Our data is from March 2006 and courtesy of oanda.com.
The BMI is indexed against the US dollar, which is convenient, since the US is also the centre of the game world.
So, apparently Big Macs cost US$3.10, and in New Zealand cost NZ$4.45 or in US$2.96 (rounded). So, we would be led to believe, that due to market conditions, lower cost of labour etc etc, that Big Macs are 4.52% cheaper in New Zealand than they are in the States.
Now, gaming.
Need For Speed: Carbon (Collectors edition) for the PC is $99.87 in New Zealand and $39.99 in the US.
The actual exchange rate that the BMI uses for this comparison is 1 USD = 1.505 NZD.
So, by taking the US price of 39.99 and simply multiplying it be the exchange rate, we determine that the the game should in fact be priced at NZ$60.18!
So, put another way, Need for Speed: Carbon (and all other similarly priced games) is priced 39.74% higher than what it should be, or 44% higher than what we’re paying for a Big Mac. That’s over a third more. Honestly, if we were paying $60 bucks for a game, sales would be double, triple or more than what they are. Very interesting.
No doubt, you’re interested in how your country compares. Below is the information for all the other countries included in the Big Mac index.
Some of the highlights that make me feel a bit better: Hungary, who pay 99.50% more than they should, Thailand who pay 97.28% more and the European union who pay 28% less than theoretically they should. Heck, if I lived in Hungary I’d be going for a drive across the border to get my games.
Btw, slight differences in figures are due to rounding errors. No major though. Also, prices are based on the PC collectors edition where possible, and I’ve used the rrp to also try and standardize things. Where the country you’re interested in is listed as being “N/A” (not available), it’s because I couldn’t find a price, usually because of language. If you want to give me a price and reference, I’ll add it to the table.
Also, I’ve had to change the table to an image to make it work. I have reference sites for all the prices, so just comment if you want me to provide the references.
Good day! I know this is kinda off topic but I was wondering which blog platform are you using for this site?
I’m getting sick and tired of WordPress because I’ve had issues with hackers
and I’m looking at options for another platform.
I would be awesome if you could point me in the direction of a good platform.
It’s truly a nice and helpful piece of info. I’m glad that you shared this useful info with us.
Please keep us informed like this. Thanks for sharing.
I really like what you guys are up too. This kind of clever work and coverage!
Keep up the excellent works guys I’ve included you guys
to our blogroll.
With havin so much written content do you ever run into any problems of plagorism or copyright infringement?
My site has a lot of unique content I’ve either written myself or outsourced but
it seems a lot of it is popping it up all over the internet without my authorization. Do you know
any solutions to help prevent content from being stolen? I’d definitely appreciate it.
Wow, this post is nice, my sister is analyzing these kinds of things, so I am going to convey her.
Usually I don’t learn post on blogs, however I wish to say that this write-up very
forced me to take a look at and do so! Your writing
style has been amazed me. Thanks, quite great post.
If some one needs to be updated with latest technologies therefore he must be go to see
this website and be up to date daily.
It’s in reality a nice and useful piece of information. I’m satisfied that
you shared this helpful info with us. Please keep us informed like this.
Thank you for sharing.
I enjoy what you guys are up too. This kind of
clever work and coverage! Keep up the fantastic works guys
I’ve added you guys to our blogroll.
Thank you a bunch for sharing this with all people you really realize what you are speaking about!
Bookmarked. Kindly additionally seek advice from my website =).
We will have a hyperlink trade agreement among us
you are really a good webmaster. The web site loading velocity is incredible.
It kind of feels that you’re doing any unique trick. Moreover, The contents are masterpiece.
you’ve done a wonderful process on this topic!
great issues altogether, you simply gained
a new reader. What might you suggest about your submit that you made some days in the past?
Any sure?
Howdy! Do you know if they make any plugins to assist
with SEO? I’m trying to get my blog to rank for some targeted
keywords but I’m not seeing very good success. If you
know of any please share. Appreciate it!
I was able to find good information from your blog posts.
Thanks a lot for sharing this with all folks you actually understand what you’re speaking approximately!
Bookmarked. Kindly also consult with my website =).
We can have a link change arrangement among us
Hi there! I could have sworn I’ve been to this blog before but
after checking through some of the post I realized it’s new to me.
Anyhow, I’m definitely happy I found it and I’ll be bookmarking and checking back often!
Hi mates, its fantastic article regarding teachingand fully defined, keep it up all the time.
If you would like to grow your experience only keep visiting
this site and be updated with the most up-to-date gossip posted here.
Hello would you mind sharing which blog platform you’re using?
I’m going to start my own blog in the near future but I’m having a difficult time
selecting between BlogEngine/Wordpress/B2evolution and Drupal.
The reason I ask is because your design seems different then most blogs and I’m looking for something
unique. P.S Sorry for getting off-topic but I had to ask!
What’s up, always i used to check web site posts here early in the morning, since i like to gain knowledge of more and more.
Good day very cool site!! Guy .. Excellent .. Superb ..
I will bookmark your blog and take the feeds also?
I am glad to seek out a lot of useful information right here within the post, we’d like
work out more techniques on this regard, thanks for sharing.
. . . . .
Everyone loves it when individuals get together and share thoughts.
Great site, keep it up!
I don’t even understand how I stopped up right here, but
I believed this publish used to be great. I do not know who you are however
definitely you’re going to a famous blogger for those who aren’t
already. Cheers!
Awesome! Its in fact amazing article, I have got much clear idea regarding from this article.
Ahaa, its pleasant discussion on the topic of this paragraph
at this place at this blog, I have read all that, so at this
time me also commenting at this place.
Thanks on your marvelous posting! I genuinely enjoyed reading it, you could
be a great author.I will ensure that I bookmark your blog and will often come back very soon. I want to encourage you to ultimately continue your great job,
have a nice afternoon!
I am extremely impressed with your writing skills and
also with the layout on your weblog. Is this a paid theme or did
you modify it yourself? Either way keep up the excellent
quality writing, it’s rare to see a nice blog like this one nowadays.
Hi there, I log on to your blog on a regular basis.
Your writing style is awesome, keep doing what you’re doing!
I could not refrain from commenting. Well written!
Every weekend i used to visit this web site, for the reason that i want enjoyment, for the reason that
this this web page conations truly fastidious funny data
too.
Hey would you mind stating which blog platform you’re using?
I’m going to start my own blog soon but I’m having a hard time making a
decision between BlogEngine/Wordpress/B2evolution and Drupal.
The reason I ask is because your design and style seems different then most blogs and I’m looking for something unique.
P.S Sorry for getting off-topic but I had to ask!
Hmm is anyone else encountering problems with the pictures on this blog loading?
I’m trying to determine if its a problem on my end or if it’s the
blog. Any responses would be greatly appreciated.
Hurrah, that’s what I was searching for, what a information! existing here at this blog,
thanks admin of this web page.
Hello there, just became alert to your blog through Google, and found that it’s truly informative.
I am gonna watch out for brussels. I will appreciate if you continue this
in future. Numerous people will be benefited from
your writing. Cheers!
Excellent post. I was checking continuously this blog and I am impressed!
Very helpful information particularly the last part 🙂 I care for such info a lot.
I was seeking this particular information for a very long time.
Thank you and good luck.
I am regular reader, how are you everybody? This post posted at this web page is truly good.
What’s up everybody, here every one is sharing these
experience, so it’s pleasant to read this website, and I used to go to
see this web site daily.
Ahaa, its fastidious discussion concerning this article at this
place at this blog, I have read all that, so now me also commenting here.
Magnificent web site. A lot of useful info here.
I am sending it to some buddies ans additionally sharing in delicious.
And certainly, thank you in your sweat!
I’m not that much of a internet reader to be honest but your sites really nice, keep it up!
I’ll go ahead and bookmark your website to come back down the road.
Cheers
At this time I am going away to do my breakfast, later than having my
breakfast coming over again to read additional news.
Hi my family member! I want to say that this article is awesome, nice written and include almost all significant infos.
I would like to peer extra posts like this .
Wow, that’s what I was looking for, what a stuff!
present here at this weblog, thanks admin of this web site.
You are so cool! I do not suppose I’ve truly read through anything like that before.
So nice to discover somebody with a few unique thoughts on this subject.
Really.. thank you for starting this up. This web site is something that is required on the web, someone with a little originality!
Excellent post. I am going through a few of these issues as well..
This is the perfect website for everyone who would like to find out about this topic.
You understand so much its almost tough to argue with
you (not that I actually will need to…HaHa). You certainly put a fresh spin on a topic that has been written about for decades.
Excellent stuff, just great!
Woah! I’m really enjoying the template/theme of this website.
It’s simple, yet effective. A lot of times it’s tough to get that “perfect balance” between superb usability and appearance.
I must say you have done a great job with this. In addition, the blog loads very fast for me on Firefox.
Excellent Blog!
Great information. Lucky me I came across your site by
chance (stumbleupon). I have bookmarked it for later!
I just couldn’t depart your website prior to suggesting that
I really enjoyed the standard information an individual supply in your visitors?
Is going to be back regularly to check up on new posts
I’m not that much of a internet reader to
be honest but your sites really nice, keep it up!
I’ll go ahead and bookmark your site to come back down the road.
All the best