Sony Explains Why PlayStation 4 Will Cost $1,845 In Brazil

There has been some debate this week as to why the next-gen PlayStation 4 will cost significantly more to purchase in Brazil than anywhere else in the world. Some cried that Sony or at least local retailers were price gouging and taking advantage, but apparently that is not the case. The insanely high price tag is 100% genuine and Mark Stanley, the Sony general manager for Latin America has stepped up to offer an explanation.

“It’s not good for our gamers and it’s not good for the PlayStation brand” said Mr Stanley when speaking with Gamespot via their blog about the $1,845 price tag, 63% of which goes toward paying the incredibly high import taxes that are in place in Brazil.

Stanley’s blog post detailed the total costs, listing “transfer cost” for importing the system as 21.5% (almost $400), 22% for Sony and retailers, and in total he accounted how the actual cost should total at 106.5% of what it is, but that the 6.5% was removed after assessing a discount! Leaving the price at $1,845.

These import costs are insane and the only ways Sony could get around them would be for Brazil to change their importing laws, or to move some of the production of PlayStation 4 to Brazil, no easy task given that all PlayStation 4 production currently takes place in just one factory in China.

Making things worse for Sony in this market is Microsoft, who have been able to get their hardware to market there for $1,000. Still very expensive, but a whole lot cheaper than the PlayStation 4.

Thank you NPR for providing us with this information.