High import taxes are the reason for the PS4′s astronomical price in Brazil
“It’s not good for our gamers and it’s not good for the PlayStation brand,” says Sony executive.
In most markets around the world Sony is attempting to create some uniformity in pricing for the Playstation 4, if that uniformity only means 399. Brazil, on the other hand, is an exception: the console will cost a whopping $1,845 locally.
Now Sony is offering an explanation for the vast disparity in pricing between Brazil and the rest of the world — taxes.
In a blog post on Playstation’s Brazil portal, Mark Stanley, Sony general manager for Latin America, explained that 63 percent of the price of the PS4 in Brazil goes toward paying import taxes.
“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,“ Stanley said in a statement.
Currently the PS4 is assembled by Foxconn in Shenzhen, China. With the PS3, Sony bypasses Brazilian import duties by assembling the console in-country. Stanley hinted that this is something Sony is currently investigating.
“Our primary focus right now is to ensure we are in full compliance with Brazilian import tax laws and look ahead the opportunity to locally manufacturing the PS4, which will significantly reduce the retail price,” he said. “We will continue to talk with the relevant government agencies to help us reduce the heavy tax burden that gamers, retailers and Sony Computer Entertainment America are paying.”
On the comment section of the post some users calculated that it would be cheaper to fly to the United States, pick up a console, and fly back to Brazil rather than buying it locally.