When I Started Making Games I Didn’t Expect I’d Pay Attention to Currency Exchange Rates…

We are working in an international gaming industry where buyers and sellers use different currencies (pounds, dollars, euros and others) and this brings quite delightful aspect into doing business. I’ve accepted different currencies when selling games, services, ads, and whatever stuff (I’m always welcoming money to come to me) and as I’ve done converting mainly from US dollars to euros, I’ve got a some kind of picture about the exchange rates.

Some time ago the US dollar rate was close to 1.50, but now it’s close to 1.40 (so, with 10 euros, you could get 14-15 US dollars depending on the day you exchange currency). It might not seem much, but when you count the numbers you start to notice that your income can change anything from 5-10% in quite short time (and more in longer period: couple of years ago the rate was close to 1.20). Multiply by 10, 100, 1 000, 10 000, 100 000 or more and you’ll see that 5-10% difference begins to make a decent amount of money.

From my perspective (as I’m usually exchanging from USD to EUR) the stronger the dollar, the more I’m benefiting. The weaker the dollar, the less I’m getting.

I didn’t realize that I would start to pay attention to dollar rates years ago, but this has changed. I’m not paying too much attention to it, but sometimes thought twice before doing exchanges when the rates were poor for me. After all, it’s difficult (close to impossible?) to predict how the exchange rates will develop, but you can make some analysis to take advantage of the current situation.

It’s pretty amazing how much game development can teach us. It goes way beyond “just games”.

6 thoughts on “When I Started Making Games I Didn’t Expect I’d Pay Attention to Currency Exchange Rates…

  1. JForceGames

    You need a proofreader. Your numerous grammar errors in almost every post make you look less professional. It is undoubtedly costing you readers.

    I will be your proofreader…

    …if you throw a link to my site on your sidebar.

    Reply
  2. Peter Saumur

    Exchange rates are just one part of the puzzle. You can be making a great sum of money, on paper, but if your relative costs are high, that profit can be rendered meaningless. Due to major increases in costs of living in the UK, for instance, my starting salary 2 years ago is actually worth more than what I make now (roughly the same + with 2.5 percent inflation increase per year). I am all for having my dollar be worth more in the global market but I also keep on eye on what that dollar can buy me, locally.

    Reply
  3. Jake Birkett

    I thought I comment already but I don’t see it. But yeah, the currency exchange rate is very important. When I started selling games it was $1.80 to the pound and then it went up to around $2.00 to the pound for a long time. Finally it’s gone back to $1.80 to the pound (quite quickly) and because I receive big payments from the US it really does make hundreds of pounds of difference, it’s cool!

    Reply
  4. Firefly

    I understand how you feel about gaming being more than the sum of its parts. I make maps for the UT engines at that has taught me patience, design skills and, surprisingly, people skills.

    Reply

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