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In Brazil, PlayStation 4 Will Cost Over $1,800

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Today, Sony revealed that PlayStation 4 will cost a staggering R$3,999 in Brazil when it launches this November (R$ is the symbol for the Brazilian Real, that country?s currency). Based on current exchange rates, that?s equivalent to $1,849.85 (or ?1,355.32, or ?1,146.65, or ?180,894.39).

To put that cost into context, PlayStation 4 will launch in the US at $399.99, in the UK at ?349, in mainland Europe at ?399, and in Japan at ?38,980. Indeed, in the United States specifically, PlayStation 4 is the cheapest PlayStation console yet when adjusted for inflation.

Retail games in Brazil will launch at R$179, which, equivalent to $82.80, doesn?t suffer from a similar cost spike.

PlayStation 3 launched in Brazil in 2010 at R$1,999, or $924.69, so a high price point isn't unprecedented. But PS4 seems to be bringing premium cost to a whole new level. Xbox One is launching in Brazil for $R2,199 ? over a thousand US dollars ? but still comes in far cheaper than PS4.

 

http://au.ign.com/articles/2013/10/17/in-brazil-playstation-4-will-cost-over-1800

 

 

Prohibitively expensive for most people, I would imagine.

 

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Well nothing really stops them from buying from other countries right?

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Wow why the insane price?

 

Taxes, tariffs, etc.

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yea, its probably the wish of Brazilian govt itself, to minimize currency outflow to japan.

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"consoles are cheaper than PCs"

 

apparently.

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Well we can thank all the wonderful governments around the world for making tech pricing like this so out of whack.

Its crazy how different it is.

Thankfully, both consoles can be imported for much less and they are region free, so no worries there.

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Wonder how the XBOne can be cheaper than the PS4 especially when in N/A there is a 100$ difference making the XBone more expensive.

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Wow why the insane price?

Because they are going to host the World Cup and not going to fix their social issues.

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Wow why the insane price?

 

Greed.

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Wonder how the XBOne can be cheaper than the PS4 especially when in N/A there is a 100$ difference making the XBone more expensive.

When your dealing with government rules and regulations, its sometimes impossible to figure out the logic.

Maybe it has something to do with MS being a US based company and Sony being a Japanese based company. Maybe there are rules that govern one differently than the other. Who knows.

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I saw something about this the other day. A coworker of mine is Brasilian, and he was talking about sneaking one down in his luggage, staying with family/friends, then selling it there at lower than retail and still fund his entire airfare. Smart, but ridiculous that it's possible.

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Everything in Brazil is more expensive, I was there earlier in the year, they were still selling 2nd Gen iCore Laptops for on average $1500-2000

An average luxury car is also +$80000 like a basic BMW, AUDI or Mercedes.

 

It's all because of the insane taxes there, but to me it sounds like Sony is just greedy, there can't be that much of a difference, specially when the XB one is supposed to be more expensive then the PS4 in the rest of the world

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I don't know if this is Sony's greed. Brazil is a huge market, or at least has a huge population, if Sony could sell their product for a more comparable price I think they would want to.

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Unfortunately all we can do is speculate, unless someone can find out the truth as to why.

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So Sony responds:

 

We have read thousands of your comments and heard your frustration loud and clear about the PlayStation 4 retail price of R$3,999 in Brazil. We want to emphasise that it isn?t in the interest of Sony Computer Entertainment America to sell PS4 units at this high retail price, as it?s not good for our gamers and it?s not good for the PlayStation brand. We have always maintained an open and honest dialogue with PlayStation Nation in Brazil, we want to be fully transparent as to what makes up this price, so gamers can be fully informed and make their own conclusion.

 

There is a lot of confusion and inaccurate information spreading online about Brazil?s import tax policies online and the PlayStation 4 retail price, so we?d like to set the record straight: of the R$3,999 gamers pay, 63% of the retail price goes to offset the various taxes that are applied in the process of importation. Some do not consider the IPI on the distributor price and PIS/COFINS on retailers price and much less, include the ICMS and ICMS-ST taxes. You can see a true breakdown of the price model at Valor Economico http://www.valor.com.br/empresas/33111?. The other 15.5% goes to retailer margin and 21.5% to PS4 Transfer Price (equivalent to USD$390).

 

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. 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. Sony Computer Entertainment began locally manufacturing PlayStation 3 in Manaus this past May and it immediately made PS3 more affordable to gamers in Brazil. PlayStation is fully committed to Brazilian gamers and we are proud of the strong relationship we?ve been able to build over the years. We are doing everything possible at this moment to reduce the PS4 price for you. Thank you for your thousands of passionate comments?we are in this together!

 

This image gives you an idea of how the total is created:

 

Jj6mrqh.jpg

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in Brazil you get Brazillian women. It's a trade off and a good one at that.

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Jj6mrqh.jpg

whoa, you can tax THAT much!!

i bet guys on IRS drooling at that kind of tax.

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That's just insane. How do you guys afford anything?

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In Costa Rica (Central America), I think it will be around 800$~, taxes here are crazy, 50% taxes for anything that is console related (controllers, games, accesories).

 

PC stuff is actually cheaper (13%).

 

That is ordering from US and using a courier system to bring it.

 

And I was complaining my country was ridiculous....

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For Sony themselves to actually address it publicly says a lot. My understanding is companies don't usually do that sort of thing.

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Jj6mrqh.jpg

Great work posting this. I'm glad they shared this info.

Now we just need to see the breakdown for the X1.

There has to be some tax that Sony has to pay that MS does not.

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Now ask Microsoft how they got the $100-more-expensive XBox One to cost $960 instead of over $1800

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Well I have now seen some hints that the reason the X1 will be so much cheaper is due to the fact that MS will be manufacturing the consoles in Brazil.

Sony also hinted that they could start manufacturing PS4s there as they did PS3s, but that will be farther down the road.

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Well I have now seen some hints that the reason the X1 will be so much cheaper is due to the fact that MS will be manufacturing the consoles in Brazil.

Sony also hinted that they could start manufacturing PS4s there as they did PS3s, but that will be farther down the road.

If they wait too long, they'll lose their customers to the Xbox One. Unfortunately R$4K is impossible for the average Brazilian.

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