Sony Explains Why Its PlayStation 4 Costs $1,845 In Brazil


Sony announced U.S. and European prices for its new PlayStation 4 at a news conference this summer. The game system will cost some $1,845 in Brazil, angering fans.

Eric Thayer/Getty Images

Sony’s new PlayStation 4 won’t be on store shelves until next month, but the gaming console has already raised eyebrows in Brazil, after reports that it would cost 3,999 Brazilian real — or about $1,845 at today’s exchange rate.

The company says the steep cost isn’t a case of price gouging, but instead a sign of Brazil’s heavy taxes and fees on imported electronics.

The game system will be released in the United States on Nov. 15 and in countries including Brazil later that month. Large retailers in the U.S. will offer the PS4 at a base price of around $400.

This week, negative public response to the high cost in Brazil led Mark Stanley, Sony general manager for Latin America, for the high price tag in a post on the company’s Brazilian PlayStation blog.

Stanely said about the high retail price, “it’s not good for our gamers and it’s not good for the PlayStation brand,” in remarks published by the .

Of the $1,845 price, 63 percent goes toward paying import taxes that are imposed on the PlayStation 4 when it’s imported to Brazil, Sony says.

Stanley’s blog post included breaking down the costs, listing the “transfer cost” of importing the system as 21.5 percent, or nearly $400. An additional 22 percent represents the margin for Sony and retailers. His numbers totaled 106.5 percent of the final price in Brazil, which is arrived at after assessing a 6.5 percent discount, Stanley says.

Sony says the price of the new PlayStation could come down “significantly” if it’s able to shift production of the consoles to Brazil. The system is currently being produced at only one factory, in China, according to Brazil’s .

In his blog post, Stanley also thanked Sony customers for sending “thousands of passionate comments.”

After the price was on Sony Brazil’s blog last week, more than 1,250 people commented on it, with many of them expressing their displeasure.

“There goes my Christmas present,” one prospective customer wrote.

Others said that at that price, it could be cheaper simply to fly to the United States, pick up a console, and fly back home with it.

Some also noted that Sony’s rivals are able to get gaming consoles on the market at a lower price. Microsoft, for instance, has set a price for its upcoming Xbox One at around 2,200 real — a bit more than $1,000.

But as NPR’s Lourdes Garcia-Navarro tells us from Brazil, it’s common to see high prices for electronics there. “It’s a good indicator of the expense of imported electronic goods here,” she says.

 

[source]

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3 thoughts on “Sony Explains Why Its PlayStation 4 Costs $1,845 In Brazil

  1. Being in the UK sucks for electronics. Continually have to pay a lot more for them than the US. For instance, from this picture, at the exchange rate right now, a PS4 costs $565.83 and an Xbox one with no game $700. It’s cheaper than Brazil, but I cannot afford it. I’ll have to wait for the price to drop. It’s affecting what console people buy here, many of my loyal xbox friends are moving over to the PS4, just because the Xbox is so expensive. Just for reference, I paid $350 for my current 250GB xbox, it’s doubled in price.

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