What's the deal with the pricing in Europe, anyway? I feel like I read something about price-fixing being a problem and that being the cause.
It's not price fixing, it's just that some sales channels have more buying power than others, amongst other factors. Also, the situation between European countries can vary wildly- currency and shipping differences make gaming in Ireland far more expensive than the UK a stones-throw away for example, let alone Northern or Eastern Europe, some of whom find it cheaper to import from the UK than to buy locally. Before region locking on the 3DS, I also used to import DS games from the US as it worked out cheaper to ship across the pond than to buy from over the road. It's crazy, but there isn't a broad 'European' pricing rule, it's still very much dependent on the market by country.
The UK situation in a nutshell:
Game are probably the most visable retailer to the mass-market, and they are generally the most expensive.
Amazon/Play/Zavvi etc and the online stores undercut them by at least a tenner per item.
The big supermarkets like Tesco and Asda sell popular items (usually only the top 10-20 games and new consoles) cheaper still as loss-leaders, especially in the run-up to Christmas.
Competition between all of the above means that the prices can change on a daily basis in the run-up to a high-profile launch.
This means that if Nintendo gives a trade price of, say, £180, you could see the same item sold for anywhere from £160 to £250 depending on where you look, which day you look and which bundle you go for.
Not only that, but software is generally sold by the online stores from the channel islands, which avoid tax if an item has a value of £18 or less. This means that a popular game can drop from £40 to £17.99 in a couple of months if too many copies are on the market.
This is why Eurogamer and a couple of other news sites do price roundups close to launch that seem to change all the time.