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Why a PlayStation 4 Costs $1,845 in Brazil!

High taxes and fees make electronics expensive there


sony playstation 4 630When Sony’s (SNE) new flagship video gaming console is released next month, buyers in one country will be facing sticker shock.

While the PlayStation 4 will retail for about $400 in the U.S., Brazilian consumers will have to shell out 3,999 Brazilian real, the equivalent of $1,845 at current currency exchange rates. Not surprisingly, Brazilians aren’t happy about the high cost, prompting a Sony executive to issue a blog post explaining that the country’s high import fees and taxes were responsible for the hefty price tag, NPR notes.

Report: Sony to Sell the PlayStation 4 at a Loss
Report: Sony to Sell the PlayStation 4 at a Loss

Some irritated Brazilians took to the Internet to voice their dismay, with some noting that it would cost less to travel to the U.S., purchase the console there, and return to Brazil.

Consumer electronics are typically more expensive in Brazil due to high import fees.

According to Sony, import taxes account for fully 63% of the PlayStation 4’s retail price in Brazil. Transfer costs comprise another 21% of the price. PlayStation consoles are manufactured in China. If Sony moves some production to Brazil, consumers in South America’s largest nation could see the price drop.

While Brazilians may have to pay more for the new console, at least they will still be able to purchase it next month. Japanese consumers will have to wait until February.

Article printed from InvestorPlace Media,

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