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[NR] Sony Explains Why PlayStation 4 Costs $1,845 In Brazil.

6K views 97 replies 46 participants last post by  DuckieHo 
#1 ·
AK1upPF.jpg


http://www.npr.org/blogs/thetwo-way/2013/10/22/239860325/sony-explains-why-its-playstation-4-costs-1-845-in-brazi
Quote:
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.
So, in the end, it's BRAZIL'S fault. NOT Sony's.

I can't believe they actually had to come out and say this. Brazil's notorious for their ridiculous electronic import taxes.
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#3 ·
Quote:
Originally Posted by frickfrock999 View Post

AK1upPF.jpg


http://www.npr.org/blogs/thetwo-way/2013/10/22/239860325/sony-explains-why-its-playstation-4-costs-1-845-in-brazi
So, in the end, it's BRAZIL'S fault. NOT Sony's.

I can't believe they actually had to come out and say this. Brazil's notorious for their ridiculous electronic import taxes.
doh.gif
No it's not, the taxes are high, but sony is making a good profit on this one. If taxes were a major issue like they want everybody to think, Microsoft wouldn't be selling the xbox one for like half the price of the PS4
 
#4 ·
Quote:
Originally Posted by felipeanon View Post

No it's not, the taxes are high, but sony is making a good profit on this one. If taxes were a major issue like they want everybody to think, Microsoft wouldn't be selling the xbox one for like half the price of the PS4
Those electronic taxes aren't new. Brazil has been forcing their ridiculous rates for years due to insufficient management...

http://thenextweb.com/la/2012/09/30/from-brazil-cost-brazil-profit-why-electronics-expensive-brazil/
Quote:
"Trust in politicians remains low (121st), as does government efficiency (111th) because of excessive government regulation (144th) and wasteful spending (135th). The quality of transport infrastructure (79th) remains an unaddressed long-standing challenge and the quality of education (116th) does not seem to match the increasing need for a skilled labor force.
http://www.businessweek.com/magazine/content/10_51/b4208013564850.htm
Quote:
The iPad is one example of the many price distortions caused by Brazil's elaborate industrial policy. Companies that don't manufacture goods in Brazil have to pay stiff tariffs if they want to sell to the nation's consumers. Brazil levies a 60 percent tax on the iPad and as much as 90 percent on imported cars. A blouse that retails for $49.50 at The Gap in the U.S. goes for $82 in Brazil at non-Gap outlets. "Brazilians sometimes pay luxury-good prices for second-rate items," says tax specialist André Mendes Moreira, who writes a widely read financial column and tracks the impact of import taxes on everything from cars to champagne. "The consumer is at a clear disadvantage.
http://www.jmcti.org/cgibin/list_ind_e.cgi?Kind=Category&category=9&code=403

Those are just a few examples out of thousands.

Make no mistake, this is on Brazil's insane taxes, not Sony's pricing.
 
#5 ·
Quote:
Originally Posted by felipeanon View Post

No it's not, the taxes are high, but sony is making a good profit on this one. If taxes were a major issue like they want everybody to think, Microsoft wouldn't be selling the xbox one for like half the price of the PS4
Or M$ knows the right people in a highly corrupt government like... oh, I dunno, maybe Brazil?
 
#6 ·
Quote:
Originally Posted by felipeanon View Post

No it's not, the taxes are high, but sony is making a good profit on this one. If taxes were a major issue like they want everybody to think, Microsoft wouldn't be selling the xbox one for like half the price of the PS4
Sony is not in the charity business, they have to keep certain margins. You should blame your government for their inefficiencies.
 
#8 ·
Quote:
Originally Posted by fragamemnon View Post

But why is the XBOne US ~$1000 in comparison to the $1845 PS?
headscratch.gif


It makes no sense to me.
Maybe MS are willing to take a loss on the console just to get them sold in Brazil
 
#9 ·
Quote:
Originally Posted by Avonosac View Post

Or M$ knows the right people in a highly corrupt government like... oh, I dunno, maybe Brazil?
Quote:
Originally Posted by frickfrock999 View Post

Those electronic taxes aren't new. Brazil has been forcing their ridiculous rates for years...

http://thenextweb.com/la/2012/09/30/from-brazil-cost-brazil-profit-why-electronics-expensive-brazil/

http://www.businessweek.com/magazine/content/10_51/b4208013564850.htm

http://www.jmcti.org/cgibin/list_ind_e.cgi?Kind=Category&category=9&code=403

Those are just a few examples out of thousands.

Make no mistake, this is on Brazil's insane taxes, not Sony's pricing.
Brazilian taxes are high, but there's no way a console with a $400 price tag to have a $1845 price tag because of taxes alone (remember microsoft isn't philantropic), that's a big lie sony is trying to sell everyone so people don't get enraged over it. The truth is most of imported goods get a high price partially because of taxes (around 100% of the original price) but mainly because the average consumer will pay the price of exclusivity wich, in a country with big social unequalities as Brazil, is valued.
 
#10 ·
Why is xbone much cheaper then.
 
#18 ·
Quote:
Originally Posted by mr soft View Post

They can get a flight and a few PSs for that money.
Also wish the 1 USD = 1 EUR corporate mentality would stop.
As a fellow Spanish citizen (although not for long) I do agree.

Or even better, stop the ridiculous 1$=1€=1£ already. We get screwed like all heck, but poor Brits get their butts even further enlarged.
 
#19 ·
Quote:
Originally Posted by frickfrock999 View Post

AK1upPF.jpg


http://www.npr.org/blogs/thetwo-way/2013/10/22/239860325/sony-explains-why-its-playstation-4-costs-1-845-in-brazi
So, in the end, it's BRAZIL'S fault. NOT Sony's.

I can't believe they actually had to come out and say this. Brazil's notorious for their ridiculous electronic import taxes.
doh.gif
You fail to see that similar product - Xbone is priced much less than sony ps4.
+ aproduct from US that costs $400 and in Brazil costs $1800 - calculate yourself whats the markup and compare to taxes - and answer yourself - is 450% increase in price due to tax or u taking sonys BS like a champ?
 
#20 ·
Quote:
Originally Posted by mechati View Post

You fail to see that similar product - Xbone is priced much less than sony ps4.
+ aproduct from US that costs $400 and in Brazil costs $1800 - calculate yourself whats the markup and compare to taxes - and answer yourself - is 450% increase in price due to tax or u taking sonys BS like a champ?
You're not factoring in the different trade agreements between Brazil with the US and Brazil with Japan.

They're vastly different. Companies in the US get a major break on Brazil's taxes.

From Lacrosse's post:

U.S., Brazil Create Partnership to Remove Trade Barriers as Obama Visits
 
#21 ·
#22 ·
I remember reading about Microsoft opening factories in Brazil, if they made Xbone's there then that would explain the price difference.
 
#26 ·
What was that Asia countries where car are very expensive. Something like 150K for a a Civic. Personally nobody going to miss Brazilian Video Game players.
 
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