This is something that has boggled me for a long time.
For most Europeans the United Kingdom is a very expensive place to visit. While the pound might not be quiet as strong as it was in the past is still a very solid currency.
Overall most things are at least a little more expensive in the UK compared to continental Europe. That is, most things except Video Games.
While I'm used to paying around 50 Euros for a new PC Game in Germany, France and the Netherlands I can get Skyrim off Amazon.uk for a whooping 20 pounds. That's about 25 Euros of 30 USD.
And Skyrim isn't the only cheap game. Most AAA titles are sold for around 30 pounds upon release which still only translates to 37 Euros. Hell, you could pre-order Diablo 3 for something like 22 pounds a while back.
What I found is that I'm much more liberal with game purchases once they drop below the ~30 pound pricetag.
Honestly, I think the industry could combat piracy more effectively by making games cheaper to purchase.