A couple of days ago, news broke worldwide about the price on which Sony’s PlayStation 4 is to be sold in Brazil. There was outrage all over the place the moment it hit the internet and this was so because the PlayStation is to be sold at an unbelievably high rate of $1850!
This was announced by Sony itself on the PlayStation Blog Brazil ensuing disappointment and anger from native Brazilians as well as gamers worldwide. Leading to Sony being forced to explain the drastic difference in pricing since PS4’s official price is $399 which is less than 22 percent of its price in Brazil.
What came out from Sony is a pretty complex flowchart that explains how Sony had nothing to do with the increased price and that it was the government taxes as well as the retailer margins that after being combined with the official selling price had made it so high.
If we break down the 3999 Brazilian Real ($1850) according to what the company has explained we find out that the retailers and distributors margin accounts for 875 Brazilian Real while a mind-boggling 2524 Brazilian Real is to be attributed to six different kinds of taxes that the Brazil government has levied.
The transfer price of PlayStation 4 is actually a mere 858 Brazilian Real which is the same as $399.
The statement that explained the breakdown by Sony has clearly pointed out that it is not in their hands:
“We want to emphasize that it isn’t in the interest of Sony Computer Entertainment America to sell PS4 units at this high retail price,” reads the statement “as it’s not good for our gamers and it’s not good for the PlayStation brand.”
Well, what do you make of this?