Oh meu Deus! Xbox One will be cheaper than PS4 in Brazil but will still cost $1,000

Much has been made about the fact that Microsoft's Xbox One is priced at $499.99 in the US for its upcoming November 22nd launch compared to the $399.99 price of Sony's PlayStation 4, thanks in part because Microsoft is including the Kinect sensor in every box. In the UK, the price for the Xbox One will be £429, compared to £349 for the PS4, and in the rest of Europe the Xbox One is being sold for €499, compared to €399 for the PS4. Finally, the Xbox One will debut in Australia for $599.99 AUD, compared to $549 AUD for the PS4.

There is one more territory where the Xbox One will go on sale November 22nd and that's in Brazil. In that country, the console will actually be cheaper to buy than the PS4, but that's not saying much. The official PlayStation blog in Brazil has confirmed that the PS4 will be priced at 3,999 Real (the official currency of the country). That's about $1,850 in US dollars.

Game Informer reports that the Xbox One will be priced at 2,200 Real in Brazil, making it cheaper than the PS4 for launch. However, in US dollars it's still very expensive at around $1,000. Add it all up and the cost of purchasing a next-gen console in Brazil is absurdly high. Our question is why can't Microsoft cut the price of the Xbox One down in other parts of the world as they apparently can do in Brazil.

Source: Game Informer | Image via Microsoft

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19 Comments

Yeah, my Nexus 7 cost the person I sold it to 200...+200 import tax. Oof. Brazilians apparently get ripped off on pretty much everything.

Actually not bad price. In Lebanon they are sold over $1000 the first year. then price goes down to $800. xbox 360 is $500 - $550 till this day.
It is funny that this even made it to the news around the world.

Sony Brasil says the high price is due to the hight taxes. They say that 60%~70% of the price are taxes.
We know that brazillian taxes are high, but there must be something else. And with that price Sony should have considered to not launch the console here. R$3,999 is totally out of our reality. FYI, with that money we can travel to USA, buy the console, at least 1 game, or a controller, and return home.

For the Xbox One price, looks like Microsoft have some kind of fiscal support from our government, so that they could lower the Xbox 360 price some years ago, and now we can get the Xbox One at a "good" price.

In the end, both consoles are expensive here, so I'll probably import a PS4 instead of buying anything around here.

Oh, and the games' price will be messed up too. While in USA both PS3 and PS4 games are priced at $60, the PS4 games will be like $15 more expensive than PS3 games here. Very lame.

Pretty sure it is all taxes.. but Microsoft gets a tax rebate because the Xbox Ones' are produced in Brazil.. meaning they are not imported and can be sold for cheaper.. They did it will the xbox 360 as well.

http://www.vgchartz.com/articl...k-in-brazil-with-price-cut/

Pretty much means that sony is importing the PS4's and paying the higher taxes because they don't want to produce them in Brazil.. It is probably more expensive to set up a factory in Brazil anyway then to just import them..

I'm not sure if the Xbox One will be produced here. Microsoft produces the Xbox 360 here, but idk about the XBOne. But even with the taxes, Sony may have some terrible costs here, because they released the PS3 officially here in 2010 at the price of R$2,000, around $920. At that time you already could buy an imported console for ~$360. That's what I don't understand: R$3,999 ($1,850) is too much for a console in a country where the minimum wage is R$678 (around $312). You don't have to be a genious to see that the brazillian PS4 will not be a success. Of course there's always those morons that will pay no matter the price to have one, like those stupids that camp in front of stores here to buy an iPhone 5 for R$3,000 (~$1380), but most people will buy an (legally or illegally) imported console.

Bun-Bun said,
Brazilian taxes are CRAZY. But most people will probably just import the console.

In addition to the taxes, doesn't Brazil also have a serious inflation problem, which would also impact the cost of imported goods? I thought I'd read that somewhere...

M_Lyons10 said,

In addition to the taxes, doesn't Brazil also have a serious inflation problem, which would also impact the cost of imported goods? I thought I'd read that somewhere...

That was 20 and 25 years ago lol.

could it be that Sony Brazil is just greedy?
60-70% taxes would bring it in the $700 ballpark. that's still a long way away from the $1850 they are asking?

Honestly this is probably to recoup some of the expected software losses you will have in the Brazilian market which is where the game companies make their money. Software piracy is crazy in Brazil so if you at least make a crazy amount of profit off the hardware it would compensate for the loss of the software that you won't get from that consumer.

That's my reasoning behind it.

You can't use currency exchange rate to compare costs between countries. It's actually considerably more than $1,800 because average salaries in Reals are less than the same job in the US in dollars. That means the cost of 2,200 Reals is more than $2,200 dollars. Unless of course you're exporting an Xbox from Brazil to the US and who would do that?

Wow, that price differential in Australia isn't too bad between the consoles. Seems a bit odd that it's approximately half of what it is in the US.

Still for the XBOX One, add GST, a poorer exchange rate, plus some other random extra "Australian costs" and we're pretty close to US pricing.

why can't Microsoft cut the price of the Xbox One down in other parts of the world as they apparently can do in Brazil.

I live in Brazil and I think it's quite the opposite. It's not the Xbox that has had a price cut, it's the PS4 that is extremely overpriced here!

I had to sign up just to post this. I am in the US but I have to travel a lot for extended periods. I use a site called shipville.com that gives you an address in the US so you can order from any store you want and checkout with a US address, which is their warehouse. They will receive it and then do all of the customs paperwork and then send it to your door in any country. Cheap too, the shipping rates were cheaper than retail and no other up front fees or anything.

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