OK, very good analysis. Now, based on all of that, explain why the $60/£60 TTK legendary edition is able to be sold by a retailer in the UK for £39.85 (14 pence less than the digital download expansion) - it is physical media, not digital download, costs 50% more, and everything you stated should apply equally well.
The simple answer is that that retailer has reduced their profit margins by £20. They will still be making a profit, won't they? So Activision's RRP in the UK is set to have[i] at least[/i] £20 profit.
Tl;Dr: why is the UK price so high? Profit margins.
English
-
I'd be asking how that company is able to do that. Did they secure some sort of deal over a significant period of time, for example...? Are they going to offer it for less until launch then ramp the price up? Do they only actually have 5 copies to sell? Did the work experience kid make a conversion error and now they're stuck with it due to some sort of consumer law? Etc
-
They are a UK company - if they have only got 5 copies, they can be prosecuted - we have consumer protection laws that cover such behaviour. The price is almost certainly correct - they have been dropping it gradually over the last few weeks, and has remained at this level for a week now. The simple answer is: they have got a good price for buying off Activision, for less than £39.85, and they are intending to sell lots and make a smaller profit on reach sale. Oh, and the price includes free shipping. So, £60 is charged purely to increase profits. I've bought from the company before - it is unlikely they will renege on the sale based on my experience.