UK price hikes likely coming

Gamers in the United Kingdom had better brace themselves: another round of videogame console and game price hikes are coming thanks to the dreaded VAT rise on January 4, 2011.

Distributors have ignored retailer pleas to lower prices of videogame consoles and games to compensate for the coming “value added tax” hike from 17.5% to 20%, forcing retailers into deciding whether to raise prices on consoles or take a profit hit.

One retailer complained that he will probably have to raise his prices, ”We’ll sell fewer of the consoles with a higher price but at least we won’t be losing money and we’ll also need to hold less low margin stock. That cash can be used for higher margin product that does sell.”

For an idea of how much prices will rise, MCV is estimating the price of games will increased around £1, while a 160GB PS3 could jump from £249.99 to £255, with the 320GB model climbing from £284.99 to £291.