Microsoft creating its own biased exchange rate for apps in Marketplace

microsoftworldLikely in part in an effort to create nice round numbers for apps in Marketplace, it seems Microsoft has been unfairly inflating prices of applications all over the world, seemingly completely independent of the real exchange rate.

Sebastian Grey, the developer of Fierce Game Hunting for Windows Phones, wrote to Mobility Digest and revealed the strange game Microsoft is playing with the price of apps.  His game costs $1.99 in USA, but the price varies widely all across the world.

Cost in USACountryMicrosoft’s chargeExcess in $Excess in %
$1.99AustraliaAUD 3.0$0.9847%
$1.99Europe1.99 Euro$0.5930%
$1.99Canada2.49 CAD$0.5126%
$1.99Hong Kong20 HKD$0.5829%
$1.99India110 Rupees$0.4322%
$1.99Mexico30 Pesos$0.4623%
$1.99New Zealand3.49 NZD$0.6533%
$1.99Singapore3.49 SGD$0.7035%
$1.99Switzerland2.5 CHF$0.6130%
$1.99UK1.99 GBP$1.0955%
Average$0.6633%

So on average an app is 33% more expensive in the Marketplace outside of USA, in spite of USA generally having a higher disposable income per person, and some countries such as Australia and the UK pay an outrageous 50% more.

While some may say Microsoft is building the cost of doing business overseas into their prices Microsoft is a global company, and that excuse does not fly with me.

How do our readers feel about being ripped off by Microsoft? Let us know below.

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