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[Baki]

https://www.bbc.co.uk/news/live/business-63031372

The £ has dropped by 30% against the dollar and has dropped from $1.16 to $1.03 in less than a month.

Expect price hikes for British gamers. When the PS5 launched, it was £375 before tax (£450 after tax). At this new exchange rate, that means British gamers were only paying $386 for the $500 PS5 disc edition.

Sony already increased the price by £30 but that is no way near enough. At this new exchange rate, Sony would need to increase the price by another £105 just to match the price of a PS5 in the USA. (£582 after tax, which is £485 pre-tax).

 

[anthony2690]

All I got was a lousy 50p ph wage increase.

What's the reason for the £ dropping so much in value?

 

[Soodanim]

Remember when GBP:USD was 2:1?

If Sony keep pushing prices up they'll push people away. Times of rising costs don't lend themselves to £600 consoles.

Is worldwide pricing done on Dollar exchange?

anthony2690 Brexit is a big one. Thanks Boris. Look where all the lies got us.

 

[nush]

What's the reason for the £ dropping so much in value?

GAF has a no politics rule, so take a guess that the answer is dumbfucks.

 

[reksveks]

All I got was a lousy 50p ph wage increase.

What's the reason for the £ dropping so much in value?

The new mini budget from liz truss, alot more debt based on trickle down economics which has meant that investors doesn't trust the UK debts/bonds as much to be simple

 

[nush]

Remember when GBP:USD was 2:1?

A lot of my game collection certainly does. Good fucking times if you got on a plane and brought it yourself.

 

[Banjo64]

Pretty confusing layout.

Are all sales taxes in the US 20%?

All I got was a lousy 50p ph wage increase.

What's the reason for the £ dropping so much in value?

The new measures announced by the chancellor.

 

[reksveks]

I wasn't sure what thread to put this in so cheers for making a new thread.

Since the 26th September the fx change got from 0.85:1 to 0.93:1 which is more than the price change so the increase in operating margin has already been wipes out.

 

[reksveks]

Is worldwide pricing done on Dollar exchange?

It's a factor for sure because most costs related to the console is in USD, shipping and BoM.

But obviously, not the only factor

 

[reksveks]

Are all sales taxes in the US 20%?

Varies state by state

 

[Bernd Lauert]

What's the reason for the £ dropping so much in value?

The US central bank increased its interest rates more aggressively than the UK, that's why the pound is dropping in value (same for the euro, btw).

 

[qwertz12345]

Remember when GBP:USD was 2:1?

This was 20 to 30 years ago?

 

[Three]

This was 20 to 30 years ago?

Yeah

 

[kyliethicc]

Are all sales taxes in the US 20%?

No. Depends on where you live. Ranges from 0% to around 10%.

 

[Arcadialane]

I hope everyone is happy. We are being screwed because the government has some strange obsessions with supporting one and cutting off another even when it's hurting its own people

 

[Mr Reasonable]

Edit: just seen that there's a no politics rule.

 

[anthony2690]

Remember when GBP:USD was 2:1?

If Sony keep pushing prices up they'll push people away. Times of rising costs don't lend themselves to £600 consoles.

Is worldwide pricing done on Dollar exchange?

anthony2690 Brexit is a big one. Thanks Boris. Look where all the lies got us.

The Tory Party.

The US central bank increased its interest rates more aggressively than the UK, that's why the pound is dropping in value (same for the euro, btw).

Pretty confusing layout.

Are all sales taxes in the US 20%?



The new measures announced by the chancellor.

The new mini budget from liz truss, alot more debt based on trickle down economics which has meant that investors doesn't trust the UK debts/bonds as much to be simple

Hope I haven't got any of you guys accidently in trouble, I don't follow politics/vote etc, so I guess it's my own fault I'm completely out off the loop.

Hopefully things settle down though, a little stressed about rising electric prices, I was only paying £40 a month a few years ago, now I'm at £100+ a month

 

[Mr Reasonable]

The US central bank increased its interest rates more aggressively than the UK, that's why the pound is dropping in value (same for the euro, btw).

But the pound is dropping vs the euro, so it can't be that.

 

[reksveks]

Hope I haven't got any of you guys accidently in trouble, I don't follow politics/vote etc, so I guess it's my own fault I'm completely out off the loop.

Hopefully things settle down though, a little stressed about rising electric prices, I was only paying £40 a month a few years ago, now I'm at £100+ a month

I think we (although one feels like it is skirting the line) should be fine, largely we haven't made any value judgement on the politics/policies (definitely have some) so not really causing any issues imo.

Back to topic, not sure how soon we are going to see the impact of this and how it plays into the larger economy. I need to check how much money I will get off my energy bill.

 

[phil_t98]

the pound will bounce back. they are reacting to the mini budget and it will get stronger

 

[reksveks]

But the pound is dropping vs the euro, so it can't be that.

It can partially be about the fed changes relative to the bank of englands but i suspect its more a factor of the increased debt.

Think the ECB next set of interests rate changes are in a couple of weeks.

 

[Mr Reasonable]

the pound will bounce back. they are reacting to the mini budget and it will get stronger

To be fair, over the past ten years the pound has got weaker and weaker, so major improvement seems unlikely unless something significant changes.

 

[Soodanim]

Hope I haven't got any of you guys accidently in trouble, I don't follow politics/vote etc, so I guess it's my own fault I'm completely out off the loop.

Hopefully things settle down though, a little stressed about rising electric prices, I was only paying £40 a month a few years ago, now I'm at £100+ a month

That actually feeds perfectly into the topic at hand, because with the cost of living being so high people won't want to buy a £600 console. Sony may have to accept the traditional method of taking a loss on the console and making it back on the games. I know demand is still high, but fixing the UK isn't an overnight job.

 

[reksveks]

Missed the following news on Friday

https://www.gfk.com/en-gb/press/uk-consumer-confidence-tumbles-to-new-low-of-49-in-september

Question is whether people are going to actually reduce spending in Q4.

 

[reksveks]

the pound will bounce back. they are reacting to the mini budget and it will get stronger

Think the question is how much it will bounce back and how quickly. It definitely will do a bit.

 

[lh032]

Jimbo: Challenge accepted.

 

[funkygunther]

it's a foreign investment firesale in the UK, too bad if you live here though

 

[Bernd Lauert]

But the pound is dropping vs the euro, so it can't be that.

The drop isn't nearly as big, though. Inflation is also slightly higher in the UK compared to the Eurozone.

 

[Fools idol]

when I started my business circa 2009 it was $2.2 or something.

 

[vito_don_corleone_]

Yeah

No. 15 years ago.

 

[vito_don_corleone_]

I am really curious if MS is willing to swallow the loses in GBP and EUR.

 

[FingerBang]

I welcome all of these changes, they're making me richer!

Yes, Liz Truss is a despicable individual, and yes, the cut at the lower end ridiculous (1%), but guys, I'm paid in USD. My salary basically went up 30% since last year. It's not all bad!

Jokes (not really) aside, the USD has been getting ridiculously strong since last year. YES, there's been a noticeable dip last week, but I feel some of the news are making it sound like it's all because of Liz Truss. It had an effect, but it's also been progressively going down for more than a year now.

This morning it went down to a new low, but it's already climbing back up

 

[Panajev2001a]

I am really curious if MS is willing to swallow the loses in GBP and EUR.

Considering their strongest market is the US and a progressive shift to services and not low margins HW I think they can.

 

[Fahdis]

Brits getting hampered by not investing in Green Energy and being reliant on Russia. Also, Brexit. Nothing more to say that US $ is also the world's reserve currency. The days of the Sterling are over.

 

[The_Mike]

It's insane how greedy Sony is under an inflation.

Sucks for you OP it's even worse for you when your money gets less worth.

 

[Lucifers Beard]

To be fair I’m amazed at how many people in the UK are still able to afford gaming as a hobby in the current climate, especially with bills being so high. Sony upping those pieces even more would mean they probably price themselves out of the market.

 

[phil_t98]

To be fair, over the past ten years the pound has got weaker and weaker, so major improvement seems unlikely unless something significant changes.

change in government maybe. its got worse under 12 years of the currant government

 

[DenchDeckard]

My country is fucked!

 

[The Shepard]

Brits getting hampered by not investing in Green Energy and being reliant on Russia. Also, Brexit. Nothing more to say that US $ is also the world's reserve currency. The days of the Sterling are over.

That's not true. We only brought 4% of our total energy from Russia. We are no where near as reliant on Russian gas then the rest of Europe and we've already stopped buying from them.

 

[Corndog]

The new mini budget from liz truss, alot more debt based on trickle down economics which has meant that investors doesn't trust the UK debts/bonds as much to be simple

You can blame this on covid payouts and huge borrowing and spending. Can’t say I have followed the UK on this though.
Only way to fix it is lower government borrowing and raise interest rates.

 

[nightmare-slain]

yey this place is fucked.

 

[kyussman]

Glad I'm still on a break from actual gaming(have been since last June).

 

[Beer Baelly]

 

[MudoSkills]

This is what I needed to finally make a dent in my backlog.

 

[Baki]

It's insane how greedy Sony is under an inflation.

Sucks for you OP it's even worse for you when your money gets less worth.

I think you don’t understand the op. I’m saying that the massive decline in the £ value means that companies will need to make large changes to Uk pricing so they don’t lose money.

 

[The_Mike]

I think you don’t understand the op. I’m saying that the massive decline in the £ value means that companies will need to make large changes to Uk pricing so they don’t lose money.

AFAIK the dollar has taken a serious skydive with Biden behind the wheel, but has the prices there increased?

Maybe I am confused? I assumed it was only a Sony thing since you only mentioned Sony, which lead to my thinking about they were the only one increasing the price lately where MS and Nintendo say they wouldn't.

I am still confused.

 

[winjer]

Don't worry, Truss is removing the bonus cap for bankers, and reducing taxes for the rich.

 

[reksveks]

You can blame this on covid payouts and huge borrowing and spending. Can’t say I have followed the UK on this though.
Only way to fix it is lower government borrowing and raise interest rates.

Kinda had to do payouts in some form, otherwise you just would have had massive unemployment.

Obviously there was going to be some fraud and wastage unfortunately. Definitely need to make punishment on Fraud tougher but ehh.

The UK goverment is doing one of those two things; aka the interest but not the other.

 

[skit_data]

Wouldn’t surprise me if we see price hikes from MS and Nintendo as well at the rate this is going. Sure, Nintendo probably has some leeway due to not decreasing the cost before but Series X and S selling at their original price is a big cost and Sony has already taken the biggest PR-hit by being the first to raise prices.

 

[ratburger]

That's not true. We only brought 4% of our total energy from Russia. We are no where near as reliant on Russian gas then the rest of Europe and we've already stopped buying from them.

I recall reading that the UK depended on natural gas for a larger percentage of it's total electricity than even Germany. Cutting off Russia just means everyone's fighting over the same spot LNG cargos.