Why are Games Much Cheaper for Gamers on Steam in Russia?

As a passionate gamer and content creator focused on the latest insights into gaming pricing, trends, and news, I consistently receive questions about why Steam games are so much cheaper in Russia. From the hotly anticipated sequels like The Witcher 4, to evergreen multiplayer hits like CS:GO and Dota 2, Russian prices cause confusion and debates across the global gaming community.

The main factors making Steam games far cheaper in Russia are efforts by publishers to curb rampant software piracy in the country, economic conditions for average Russian gamers, and varying regional pricing policies set by developers.

Russia has faced notorious piracy rates across all forms of media, with estimates that over 60% of software is pirated. But as one of the largest and most enthusiastic gaming markets, publishers are compelled to make buying games viable. Let‘s delve deeper into the key reasons for Russia‘s tantalizing Steam game prices.

Combating Piracy in the Russian Gaming Market

Russia‘s software piracy rates have hovered between 62% to 67% over the past decade according to the Business Software Alliance. For comparison, the United States sits below 20%.

To put things in perspective, it was once commonplace to find sidewalk kiosks in cities like Moscow and Saint Petersburg selling pirated games and software for less than $1. Publishers had virtually no chance of selling triple A games to Russians for $50 or $60 retail pricing.

However, Russians also have a well-documented passion for video games across platforms. Russia ranks 6th globally in total PC gamers according to NewZoo, ahead of Germany, South Korea, and France.

Top games like World of Tanks and Warface from developers like Wargaming and Crytek also originate from Russia and neighboring countries. In total, over 13.6 million Russians actively use Steam.

Publishers recognized that lower pricing could capture many would-be pirates while properly compensating developers.

As evidence, let‘s examine several case studies:

• CD Projekt Red‘s The Witcher 3, priced at 1,699 rubles (~$25) on Russian Steam, sold over 1 million copies just in Russia & CIS as of 2016
• Fallout 4 priced similarly moved over 700,000 units in the same region

Both games retailed for $60 in the US & Europe, showing the massive pricing gap.

The Decline of the Russian Ruble

Beyond piracy, economic realities make cheap games a necessity to thrive in Russia.

The Russian Federation faced political turmoil in 2014 when it annexed Crimea, spurring economic sanctions and a sharp decline for the Russian ruble – a currency crash exceeding even the 1998 financial crisis.

Ruble to USD Exchange Rate:

As the table shows, the ruble rapidly lost over half its former spending power from 2013 to 2015. This placed strain on Russian consumers hoping to buy imported goods or services.

Average nominal wages provide another view into most citizens‘ strained purchasing power:

With the average Russian seeing wage growth not keep pace with inflation and currency devaluation after 2014, higher priced foreign games became even more out of reach.

Paying is Still Difficult, Despite Declines

To further illustrate economic struggles, the cost of living is far lower but remains challenging for your average Russian Steam user. According to crowdsourced indices, monthly expenses compare as:

So we can see life in Russia has a vastly lower cost, but disposable income for entertainment like games can still be scarce.

This helps explain stories of Russians spending months of savings for a gaming PC or console. Lower Steam game pricing makes that investment more viable and drives higher sales volumes from dedicated fans.

Gamers in countries like India, Brazil, Ukraine, and Turkey see similar economic dynamics, also receiving region-specific discounted pricing.

However, the ongoing war in Ukraine has tragically disrupted many Ukrainians‘ incomes while spurring wide-ranging sanctions blocking purchases and payments from Russia. I‘ll cover more details on that situation shortly.

Contrasting Publisher Approaches

Beyond economic factors, pricing decisions ultimately reside with game publishers selling on Steam and their regional strategies.

We briefly touched on some hit stats for The Witcher 3 and other RPGs out of CD Projekt Red. However, not all publishers take an equally aggressive discounting approach for the Russian Steam store:

Activision Blizzard

The creators of all-time hits like Call of Duty, Overwatch, and World of Warcraft largely keep Russian prices consistent with North America and Western Europe.

For example, 2022‘s Call of Duty: Modern Warfare II retails for 2,299 rubles, equaling around $60 USD depending on exchange rates when purchased.

This contrasts with prices as low as $20 we see for many indie or mid-tier games on Russian Steam.

As one of gaming‘s financial juggernauts, Activision likely sees uniformly premium pricing as maintaining perceived value for its tentpole franchises.

Ubisoft

Another major publisher in Ubisoft, best recognized for Assassin‘s Creed, Rainbow Six, and Far Cry, takes a similar approach.

The newest Assassin‘s Creed Mirage is offered for 2,499 rubles, consistent with its $60 pricing abroad. Less aware gamers could assume the game somehow costs more based solely on the higher ruble number.

Of course, a revenue obsessed company like Ubisoft surely tested lower price points but found maximizing sales at current levels optimal.

EA, Xbox, PlayStation

Other majors like Electronic Arts, Microsoft‘s Xbox division, and Sony PlayStation also avoid Russian price cuts on marquee titles.

Flagship sports series like FIFA and Madden sell for thousands in rubles, clearly not tailored to average citizens. However, the brands likely resonate as aspirational status symbols there as much as globally.

Obtaining Games Amidst Conflict

As mentioned regarding Ukraine‘s invasion, increased turmoil has severely hampered Russian gamers‘ purchases despite the discounts:

• Sanctions blocked major Russian banks and payment systems from conducting international transactions over services like Visa and Mastercard
• Popular online payment platforms like PayPal also withdrew operations from the country
• Paying in foreign currencies like USD or Euros now requires physically carrying paper money

Many Russians previously relied on online gift card purchases to add Steam Wallet funds. This convenient option no longer exists.

Instead, present payment channels consist of:

• WebMoney
• QIWI
• Mobile carrier billings

All focus on tighter Russian financial loops avoiding blocked foreign transactions.

Unfortunately, further economic impacts could pressure publishers to reduce Russian discounts. If certain payment processors close or consumers lack funds, even current prices may overwhelm shrinking budgets.

However, for now, most key games outside top-tier $60 console titles remain undeniably cheaper for Steam users with Russian accounts. Let‘s examine a few examples comparing Russian prices translated to USD alongside current US Steam listings:

Why Other Regions Pay More on Steam

To place Russia‘s discounted pricing in context, let‘s discuss how much pricier games remain across Latin America, Oceania, Scandinavia and beyond.

Australians notoriously pay the "Australia Tax," seeing 30-50% premiums stemming from licensing fees, import costs, and local markups on everything from games and apps to Adobe software subscriptions.

Many Latin American economies likewise face unstable currencies and inflation. This leads Steam prices in Mexican pesos or Argentine pesos often exceeding careful Russians.

Overall, Valve ties Steam pricing to local costs and consumer expectations calibrated per currency and market. This results in a mosaic of discounted or premium rates globally.

Gamers in Scandinavia, the Eurozone, Switzerland, and Canada also typically pay higher costs hitting USD equivalents from sheer currency conversions.

Should You Use a VPN to Access Russian Steam?

In light of the large Russian price discrepancies highlighted, the temptation emerges for gamers worldwide to access the Steam store using a Russian VPN. However, I strongly advise against this due to violating Steam‘s Terms of Service.

Valve bans accounts caught exploiting VPNs for geo-arbitrage or location cloaking. Beyond jeopardizing your game access, the ethics remain questionable regarding proper regional pricing.

Instead, I suggest cost-conscious gamers utilize legitimate discount finders, bundles, trading platforms like G2A, and be patient for seasonal Steam sales.

Responsible discounts exist without resorting to risky workarounds at your account‘s expense!

Will Russian Steam Game Prices Increase?

Given present currency, economic uncertainty, and conflict-related pressures, an obvious question is if Russian Steam discounts could shrink.

My outlook is publishers likely won‘t shift pricing significantly unless forced by regulations or severe payment processing declines:

• Cheaper pricing is crucial to counteracting piracy and sustaining Russian game spending
• Publishers are reluctant to increase prices and risk community blowback once normalized
• Lower prices help subsidize free-to-play titles reliant on internal purchases
• Testing shows current pricing maximizes revenues despite currency fluctuations

However, I would monitor the ruble‘s stability along with ongoing digital commerce restrictions closely for changes. Particularly smaller developers selling direct on Steam could reach thresholds where Russian transactions become unprofitable.

Besides outright increases, tactics like discounts packs with bonus content, early access periods, or loyalty rewards could help supplement returns.

But for now, most evidence indicates publishers intend to retain cheaper pricing as long as feasible to court the sizable Russian gaming market.

So for the majority of Steam gamers in Russia, enjoy the current bargains in your regional pricing to the fullest! Cherish the discounts enabling so many memorable gaming experiences despite the economic struggles.