I am very confused by this matter and was wondering if the Bash and Slash community could help me understand this better

How can steam get away with the prices they charge e.g.

http://store.steampowered.com/app/10180/

Modern warfare 2 an old game still going for £40 = $60 where as play.com have it for £30

same with CODBO its £40 in steam but £35 in GAME UK

BFBC2 steam = £20 GAME uk = £17

How can they get away with these prices if other company's who have to pay for stock space as you get a disk and a case can charge less! also if you have a disk you can trade the game in and get a small amount of cash back this still takes of how much you payed for the game.

I was wondering if there is anyone here who buys all their games from steam and if so why do you do it? how is steam still putting these prices up when they are not competitive? i know it is only a small amount of cash each time but it adds up after a bit

Steam in my eyes has never been competitively priced ever for games and in the words of PST* Joker "I'v always like it in my hand."

Publishers or self-published developers form the prices and regional limitations on Steam and all other digital distributors. Valve/Stardock/D2D/etc. have no word on that.
When promotions are about to be done, the company doing it is contacting publishers and they figure out the discounts. I can't even buy F1 2010 from Steam for instance. Other things like the Ultimate edition of Dragon Age was only recently made available. It was on Impulse but I couldn't buy it because I live in a certain country - EA enforced limitation.
Retail games get a discount because the retailer has to make shelf space for new games, digital stores have no such problem and they also (i'm just assuming this) can't make their own prices without contacting publishers first (as i've stated above).
As for competitive - I don't know, paying 2.35EURO for Left 4 Dead 2 is so ridiculous, I think it can be made illegal too.

well that's what i thought at fist that Steam was getting screwed over by the publisher but GAME UK has digital distribution method also http://game.gamesplanet.com/ and that is cheaper then steam still, i remember getting APB (the game that flopped) from GAME UK digital download £10 cheaper then my friend got it form steam some games on steam have very low prices but some are just not competitive i don't understand how they wont/cant put their prices to the same level

Well, retailers have publishers by the balls. I don't remember the exact figures but watch Pack Attack - at one of his early episodes he explains what goes to the publisher, developer, other expenses and stuff like that. If publishers start putting digital copies for 30$ instead of 50-60, they can easily be boycotted by retailers and this will overall lower their exposure and profit. Not to mention certain contracts they probably have made.

I want to know how steam can charge $89.00 AUD for BO and ppl in US get it for $60.00 USD.Specialy now that Australian dollar is same as US

already explained, you should read before posting

well i am yet to fined someone who has found steam to be the best deal around it always seems to be a bad one apart from their really good sales

Steam does not set the prices the developers set the prices and often times they are strong armed by retailers into charging the same price as retail. Remember the UK retailers threating to boycott games that were distributed through steam?

no i didn't know that but that interesting ill have to read up on that thankyou

You may want to keep an eye on steam over the next week as they have one of there sales on bc2 was 7 pounds now its 15 as they have day only sales .