Originally Posted by
Rauktol
Okay, let me give you another approach to my reasoning.
Let's imagine that a person does the same job, which requires the same physical/mental effort in country A and the other person does it in country B.
The person in country A earns 1000 dollars and the person in country B 500. They have invested the same amount of work and yet because of the economic conditions of their country and the cost of living, their salary is different.
Now country A produces a product that it also wants to sell in country B. It is important to mention that a intangible good and does not require the investment of raw materials and physical labor in its production (which would not allow to lower the selling prices much), and can be replicated whenever you want.
However, if we sell it in country B at the price of country A, it will obviously have a limited demand, since few people will be able to afford it. Therefore, the price must be lowered.
It is true, that it costs less in country B, but the proportion of effort in acquiring it, represented by the salary, is the same. Both in country A and country B.
P.S.
Apart from games, an example that we all know is the cinema, which has always applied this approach.