How will Steam’s decision to sell in dollars in Turkey affect users and the game market? All our opinions on the details and possible consequences of the new sales policy.
The recently announced change in Steam’s sales policy in a total of 25 countries, including Turkey, occupies our agenda. In its statement, Steam highlighted Turkey (EMEA) and Argentina (LATAM) and decided to classify these countries according to the newly created regions. Although he cited fluctuations in the exchange rate as a justification, it is difficult to say that this decision was taken in one day. Therefore, let’s take a closer look at this change, which will be effective from November 20, 2023.
First, let’s understand the reason why Steam switched to selling in dollars.
Sudden and large fluctuations in the exchange rate necessitate constant updating of the prices of digital products. It is obvious for those who follow market dynamics; The prices of many products in Turkey can change even during the day. In this volatile market, the risk of loss for seller companies is also quite high. This risk is even greater, especially for companies with a wide product range.
Although distributor companies determine the pricing on the Steam platform, the constantly changing exchange rate is also challenging for these companies. One of the main reasons for Steam to make this change is to protect distributors and developers, while also ensuring market stability. However, another important reason is to minimize Steam’s revenue loss. Steam pays the distributor in dollars for sales made in TL, which may result in loss of revenue due to exchange rate fluctuations.
Let’s explain with a simple example; The dollar exchange rate, which was 27.4537 on October 2, 2023, increased to 28.0807 TL on October 25, 2023. This represents an increase of 0.627 TL. “What does 23 liras mean out of a thousand liras?” you may think. However, this means a loss of approximately 230 thousand liras for a monthly turnover of 10 million. When we consider that Steam covered this loss from its own pocket, we can see that this loss is a figure that should not be underestimated.
What is the impact of exchange rate regulation on us?
In Steam’s statement, it is stated that game prices may both increase and decrease. Although I think a price drop is unlikely, I wonder “why not?” I get hopeful by saying.
Steam generally followed a more affordable pricing policy for Türkiye. With some exceptions, the price of a game sold in America was generally more advantageous in Turkey. I think a similar policy will be continued in the new period. However, we should not forget that fluctuations in exchange rates will be directly reflected in prices.
We must take into account that depending on exchange rate fluctuations, our access to the games may become easier or more difficult.
What Should Be Done by November 20?
In the meantime, I can offer two simple suggestions:
- If you have balance in your Steam wallet, I recommend you spend it. On November 20, your current TL balance will be converted to dollars.
- Don’t miss Steam’s Halloween sale. Even though the discount rates and game variety are not high, there may be games to add to your library.
- You can turn to other platforms that currently trade in TL, for example Epic Games.
Will Other Gaming Platforms Be Affected by This Change?
Although there is no clear information about platforms that sell in TL, such as PSN, Xbox Game Pass and Epic Games, considering Steam’s leadership, it would not be misleading to think that these platforms may switch to a similar structure. Especially the recent increases in Xbox Game Pass and PS Plus may be a harbinger of this change.
Additional Information
What is Latam USD?
“Latam” refers to Latin America, while “USD” refers to the American Dollar. LATAM USD means American Dollar used in Latin America.
What is EMEA USD?
“EMEA USD”: “EMEA” refers to the “Europe, Middle East and Africa” region. “EMEA USD” refers to pricing or trading in dollars used in these regions.
Is Steam withdrawing from Turkey?
No. As some media outlets wrote, Steam is not withdrawing from Turkey. It starts selling only in dollars.
When will the Steam dollar exchange rate be updated in 2023?
The update will be made on the purchased unit, not on the dollar exchange rate. This was announced as November 20, 2023.
Will Steam continue to charge VAT?
Since the platform provides the obligation to pay taxes to the Republic of Turkey through VAT on its sales, there will be no change in this regard.
Conclusion
This new sales policy of Steam contains advantages and disadvantages for both game distributors and users. As consumers, we must be prepared for the direct impact of exchange rate fluctuations on prices. However, we hope that in this process, especially game developers will receive a fairer share and a more solid structure will be formed in the Turkish market.