Gamasutra: The Art & Business of Making Gamesspacer
arrowPress Releases
April 18, 2014
PR Newswire
View All





If you enjoy reading this site, you might also want to check out these UBM TechWeb sites:


Sony blames import tax for $1.8K PS4 asking price in Brazil
Sony blames import tax for $1.8K PS4 asking price in Brazil
October 22, 2013 | By Mike Rose

October 22, 2013 | By Mike Rose
Comments
    15 comments
More: Console/PC, Business/Marketing



Sony revealed last week that its upcoming PlayStation 4 console will cost 3,999 Brazilian Real in Brazil, or around $1840. With consumers in the country extremely unhappy with the price, the company has blamed taxes for the high asking price.

In a post on the official PlayStation blog for Brazil, the brand's Latin America general manager Mark Stanley explained that nearly two-thirds of that asking price goes towards import taxes in Brazil, while another 22 percent goes to distributors.

The company claims that it is actually charging around $400 for the console before all of this is added on. In fact, the company says that it has knocked around $120 off the actual price to finish on this 3,999 Brazilian Real figure.

Stanley noted that the company is not happy about this arrangement, stating that "it is not good for our consumers, and it is not good for the PlayStation brand."

In comparison, it is reported that Microsoft's Xbox One will cost around 2,200 Brazilian Real, as it is suggested that Microsoft is not subject to some of these import taxes.

ps4 brazil.jpg


Related Jobs

Mapzen
Mapzen — New York (or San Francisco), New York, United States
[04.18.14]

Mobile Graphics Engineer
The Workshop
The Workshop — Marina del Rey, California, United States
[04.18.14]

Sr. Programmer (Generalist)
The Workshop
The Workshop — Marina del Rey, California, United States
[04.18.14]

Senior Graphics Programmer
Machine Zone
Machine Zone — Palo Alto, California, United States
[04.18.14]

Senior Software Engineer (Server-Side)










Comments


Bernardo Del Castillo
profile image
Sadly, this is a reality in a lot of countries. There is not much to be done if governments don't stop taxing videogames as ultra-luxury items ( which to be honest, knowing the reality of some of these regions, is actually not that crazy either).

All the region of latin america suffers from almost ridiculous overpricing, which is exacerbated even further by the general lower income.
The additional problem today is that, while years ago the consumers would have simply accepted it, today we have instant media telling us the unfairness of the situation.

It is still rather odd that the PS4 ended up at a higher consumer price than the X1 in Brazil, by that same logic, the prize should still be lower... specially considering that brazil is currently one of the places where sony is outsourcing console manufacture.

The wonders of the market....

Vinicius Couto
profile image
It seems the X1 is manufactured (at least partially) here in Brazil, while Sony only allows a single factory, in China, to make every PS4 unit and components. Factories in Brazil only handle PS3 and games (PS4 games do have a fair aprice, about 180 Brazilian Reais, or around 80 dollars).

Bernardo Del Castillo
profile image
Ah yeah, I realized that later, I suppose games follow a different importation and tax model...
Well it'll probably get better if they set up a manufacture plant there... but.. still sucks.

Vinicius Couto
profile image
For those interested, there's also a more complete chart: http://cdn.kotaku.com.br/wp-content/blogs.dir/11/files/2013/10/im
postos_kotakubr.jpg
Taken from an updated brazilian Kotaku post (http://www.kotaku.com.br/preco-ps4-explicacao-sony/).

Doesn't change the fact the the price is absurd, specially brazilian's minimum wage (less than 700 brazilian Reais).

Christopher Myburgh
profile image
Holy shit! And I thought import taxes here in South Africa were a rip off! Suddenly 6300 ZAR (~$640) for a PS4 doesn't seem so bad...

Harry Fields
profile image
If Brasil was a large enough market, they could get around it, by producing units there. They could even obtain waivers on most taxes for the imported components to build if they produced the finished goods there. Alas, I don't think the number of consumers in Brasil are sufficient to make a Brasilian plant justifiable from a business perspective. It sucks, but this is not really Sony's fault at all.

Maurício Gomes
profile image
Sony stated they will make a PS4 factory here, but the price drop will be only 50% (thus to 900 USD, still ridiculous).

People here are speculating that MS is selling here at crazy loss to keep their local market share (Xbox 360 currently has 83% of market here), specially because the shit their made in their announcements (that caused a surge in Sony popularity here)

Harry Fields
profile image
I did not know they were going to produce anywhere outside of FoxConn. A Brasilian plant should certainly help lower the cost. I have to wonder how hard Sony is trying to bring it to market at a reasonable cost. Sure, manufacturing costs are a little higher, both in equipment cost, and workforce, but they really should be able to squeeze it down to the 550$ USD range. I would hope both Sony and MSFT would take South American territories more serious this generation as many of the economies have been showing impressive growth since the start of last gen.

Luis Guimaraes
profile image
The price of the X1 in comparison is the weird part of it all. There's many veins of speculation going around:

- That MS is declaring the X1 as a media center and not video-game console thus falling in a different category of the importing taxes chart.
- That MS or an interested MS partner (drop NSA jokes and conspiracy theories here) is paying for part of the price difference to get the console to mass market.
- That MS managed to grab special discounts in taxes based on the non-gaming applications of the Kinect 2, with special highlight to research in medical field.
- That Sony is just sending very few units to Brazil as their market share is already too low that they're giving up on it and only selling a few overpriced units to people willing to pay the insane prices for collection or show-off purposes.
- That Sony is working around the low market share from the previous generation by playing a market coup, holding lots of free press and getting people to talk about it everywhere and raise the perceived value of the console in comparison to the X1, but then having it suddenly hit shelves priced lower than the X1, enjoying more free press and capitalizing on all the exposure, raised perceived value, and shock impact of the price "drop".

Harry Fields
profile image
Well, MS has made some decent R&D & technology park investments in Porto Maravilha and Sao Paulo. They also produced 360s in the free economic zone in Manaus starting a couple years back. Investing in Brasil and creating jobs is sure to help with in-country taxes and building locally for the market eliminates almost all of the taxes that come with importation. I'm sure Sony has some presence in Brasil, what with their sheer size, but it's obviously not a PlayStation-related presence.

Keith Thomson
profile image
Sony does produce PS3s in Brazil already. They haven't retooled their factory there to produce PS4s yet however. It took them 3 years after the release of the PS3 in that country to actually get their factory producing them there.

Dan Paiva
profile image
I am from Brazil. I bought the PlayStation 4: Launch Edition at amazon.com back in June.

I selected the most expensive/fast shipping available to Brazil.

Amazon.com does all the import work for me and delivers the PS4 at my door, BEFORE the oficial brazilian PS4 release date. It charges me for that import work though.

Here's my PS4 amazon.com order total, to be delivered in São Paulo Brazil with Express shipping:

Item(s) Subtotal: $399.96
Shipping & Handling: $36.98
Import Fees Deposit $415.62
Grand Total: $852.56

US$ 852,56 is around R$ 2000,00 - 50% of the R$ 4000,00 Sony wants to charge for the PS4 in Brazil.

If you are from Brazil, please, use amazon.com and save yourself R$ 2000!!!

Jonathan Murphy
profile image
I have a friend in Brazil. He had to save up for a year just to buy a new graphics card. We couldn't even import one to him! It cost too much! Hats off to Nvidia for making durable GPUs, even when dying.

Fernando Chavier
profile image
Why the PS4 is so expensive in Brazil: http://www.ps4truth.com/

Frank Moolah
profile image
I didnt realize how bad Brazil's government sucks...


none
 
Comment: