UK shops promise to freeze game prices

Taken from eurogamer:

UK shops have promised gamers they will freeze the price of videogames despite the incoming VAT hike.

VAT will rise 2.5 per cent on 4th January, but shops have told MCV they plan to swallow the cost in order to remain competitive.

However, shops have called on publishers to help them do it – they want the likes of EA, Ubisoft and 2K to sell them games at a lower price.

According to MVC, though, publishers aren't listening.

And some are dismissive of retailer concern. One publisher called it 'panic', saying: "Stores were more than happy to not change prices when VAT was cut – they surely understand this situation works both ways?"

Most PlayStation 3 and Xbox 360 games released in the UK come with a £49.99 RRP, but shops usually knock money off.

There are some exceptions: Activision raised the RRP of phenomenally successful shooter Call of Duty: Black Ops by a fiver to £54.99.

A small ray of sunshine in the face of every tightening financial restrictions!

Hmm, sounds like bollox to me. When the VAT was @ 17.5% games were around £39.99, when VAT was dropped it 15% games were still around £39.99. (I'm probably completely wrong and am prepared to be corrected

Depends whether it holds or not, personally think they will try to hold it but it they dont get the support from the Publishers then the prices will go up. A lot people use the 'Used' games market now so how much effect will this truly have??

I would say the retailers will absorb it - I dont know the margin % they make but I would say they make enough off a game not to notice the 2.5% much. The other side of it is that they most likely pocketed the extra 2.5% when VAT was down so it levels things a little...

True, they will make the most money out of the 'blockbuster' releases like Black Ops anyway, we shall and wait and see