Why does the same game cost different amounts in different countries?
Because publishers set regional prices rather than converting one price at the exchange rate — and the reasoning is a mix of genuine economics and market strategy, with the result that a game can cost several times more in one country than another.
What actually drives regional pricing:
Purchasing power. A price that is routine in one economy is prohibitive in another. Setting a lower local price captures sales that would otherwise not happen at all — a sale at a lower price is better than no sale, since the marginal cost of a digital copy is effectively zero.
Local competition and piracy rates, where affordable legitimate pricing is the most effective response.
Tax and regulatory differences, including VAT and equivalents, which vary substantially.
Currency volatility, which is why prices are periodically revised rather than floating.
Platform recommendations, since storefronts publish suggested regional pricing tables that most publishers follow.
Distribution and physical costs, where relevant.
Why it is not simply exploitation. Charging everyone the same nominal amount would mean charging far more in real terms in poorer markets — and it would reduce access without increasing revenue. This is price discrimination in the economic sense, and in this case it mostly expands the market.
Why it causes friction:
Region-switching and VPN purchasing, which storefronts prohibit and periodically enforce against — including by locking accounts to a region or requiring local payment methods.
Key resellers, where keys bought cheaply in one region are resold elsewhere. This is against most terms, carries a real risk of keys being revoked if obtained fraudulently, and returns nothing to developers when keys were bought with stolen cards.
Price rises after currency devaluation, which are experienced locally as sudden and severe.
Withdrawal of favourable pricing, where a publisher aligns a region upward — a recurring source of anger.
Gift restrictions across regions.
Subscription services complicate it further, since their regional pricing differs on a separate basis.