It's normal to price games lower in less privileged countries.

Do EU prices normally include VAT? US list prices for games cannot include Sales Tax, because the tax can vary widely by State (or even by local government).

Part of it is that EU countries charge VAT on digital sales and prices must include it, while in the US there’s sales tax instead, which depends on the state and is only added at checkout time (and also often lower or even zero for digital goods). For example if I pay 80 Euro in Germany, then Steam gets to keep 67 because those 80 Euro include 19% VAT.

The other part is that in a market economy, prices are determined by what generates the most profit, and not necessarily related to cost or based on fairness. EU customers apparently pay 80 Euro often enough that it makes more money than 60 or 100 Euro so developers set their price to 80 Euro.

Steam or any other digital storefront decides to price a 80€ ($91) game the same as a $80 (69€)

1. Steam itself does not decides the prices.
2. Regional prices is meant to be uneven, as countries have different living standards and the conversion rate is not always the same.

Question:

• European prices include taxes already. Does the US price shown with or without taxes before checkout? I don't know that actually. This could be another factor in different price shown.

Since the marginal cost of selling additional digital copies is zero, I'd hazard that it's priced that way because Europeans will pay that much and companies like to get money

It's because one of the basic ideas of free market capitalism, that competition between suppliers will drive down prices to the lowest sustainable point, is a lie.

Everyone selling anything aims to be a price taker. That is, rather than sell for the lowest price that keeps them afloat they sell for the highest price they can get.

In Soviet Russia, State price games and then games play you!

Since digital copies cost nearly zero to make, prices of digital goods such as video games are completely arbitrary anyway; they are set to whatever people are willing to pay.

The conversion rate between EUR and USD is so ridiculously close to 1 that it makes sense to treat them as essentially equivalent. If you don't, you'll just spend unnecessary effort converting to and from numbers that aren't round.

I like how the correct answer is written here multiple times and yet people choose to upvote others