VAT increase sees games prices jump

UPDATE: Argos, GAME and Amazon increase some hardware and software prices following overnight VAT hike
Leading UK games retailer GAME has confirmed to MCV that it has increased the price on some of its products as a result of the VAT increase that came into effect in the UK overnight.
However, the chain has pointed out to MCV that it still offers a market-leading price on a number of key products.
Eagle-eyed MCV readers noted that as of this morning many games that were yesterday priced at £39.99 now cost £40.99. In addition, the price of a PS3 Move Stater Pack has increased from £49.99 to £52.99.
Xbox 360 hardware SKUs including the 250GB (now £203.99), 4GB (£152.99) and 250GB with Kinect (£305.99) have also been upped.
"We are working hard with our suppliers to minimise the impact of the VAT rise on product prices but from 4 January 2011, customers will see some increase in our in-store and online prices," an official spokesperson confirmed.

"However every week, customers will also see that we have a wide range of special deals and promotions that offer a greater discount than the VAT rise and offer incredible value for our customers. These will continue in 2011 and we are confident that customers will see that we provide value and expertise that they can not find anywhere else."
Amongst the current deals pointed out to MCV were Xbox 360 shooter Halo Reach for just £24.98 and the PS3 version of Fallout: New Vegas for £19.98, both of which the chain says are the cheapest in the UK.
These prices were introduced as part of the chain's Christmas sale and have not been altered in light of the VAT increase.
UPDATE 1: Catalogue retailer Argos has also upped some of its prices following the VAT increase. It is currently offering the Xbox 360 S 4GB with Kinect for £255.30 and the standalone Kinect accessory for £132.76 via its website. A number of chart titles including Halo Reach, Black Ops, Fallout: New Vegas and Fable III are now priced at £40.84.
UPDATE 2: Amazon has also confirmed that it has upped some prices overnight. "The VAT rate is one of many factors that is considered when we determine our prices," a statement read. "Prices may decrease or increase depending on any of these factors. Amazon.co.uk will be applying the new 20 per cent VAT rate to all orders dispatched after January 4th 2011."

http://www.mcvuk.com/news/42368/GAME...rice-increases