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PS4′s Brazilian price tag 63% tax, “not good for consumers”, says Sony

Tuesday, 22nd October 2013 00:49 GMT By Brenna Hillier

Sony raised eyebrows last week by announcing a hefty R$3,999- about $1,850 – price tag for the PlayStation 4 in Brazil; it has now acknowledged the price is unhealthily high but blamed it on local taxes.

In a follow up post on the Brazilian PlayStation Blog, as run though auto-translate, Sony’s Latin America general manager Mark Stanley said the company has heard “hundreds” of negative comments on the “frustration” of the high pirce tag.

The executive said Sony wants to be totally open about the price, which he described as being “not good for our consumers, and … not good for the PlayStation brand”.

63% of the R$3,999 price tag is allocated to compensate for the fees and taxes on imported goods, he said, offering a diagram breaking down the various charges.

Another 15.5% is retailer margin, and 21.5% is the actual PS4 cost itself – about $390.

Stanley said Sony is working to try and negotiate a lower tax burden, and said that Sony will consider manufacturing the PS4 in Brazil; it began producing PS3 units locally this year, resulting in an immediate and significant price drop thanks to the lack of import fees.

The PlayStation 4 launches in North America on November 15 and comes to Europe, PAL regions and selected South American territories on November 29.

Thanks, Polygon.

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17 Comments

  1. ManuOtaku

    They havent seen nothing yet here in Venezuela it will cost 2500 $

    #1 11 months ago
  2. heyvc

    http://www.youtube.com/watch?v=Nyg02fd6WQA&feature=c4-overview&list=UUQoWl9ALIDlbAm2klnVQbrg

    How to buy a PS4 in Brazil.

    #2 11 months ago
  3. dbaracho

    Sony is lying through her teeth, im brazilian and XBOXONE will cost R$ 2.200,00 (i meant reais, not american dolars). The taxes are almost the same for both consoles.

    The sad thing is that this lie is drawning a lot of press here on brazil, since 2014 is an election’s year. The thing is that taxation is a sensitive matter on the brazilian midia, who is opposition to the current government.

    DO NOT BUY THIS LIE GUYS!

    Sony is underpricing in USA and overpricing on other countries, probably cause they wouldnt have enough PS4 to sell on the firsts lauching months. The sad thing is that P$4 will still sell a lot, since we brazilian overpay for almost everything (yeah, i meant it, and its a sad truth)

    #3 11 months ago
  4. ps4fanboy

    already knew it was because of taxes.
    I mean its not like sony has anything againts the people of brazil.

    #4 11 months ago
  5. Dragon

    Doesn’t matter. All that matters is X1 is about half the price of PS4 in Brazil and hence, will enjoy better sales.

    #5 11 months ago
  6. OmegaSlayer

    On a guitar forum I visit there’s a Brazilian guy whose girlfriend works at the import committee.
    She says that MS bribed the Government to have lower tax fees, at that point Sony inflated the price a bit to encourage people importing the PS4 from EU/US because it will cost much much less.

    #6 11 months ago
  7. DrDamn

    The sums don’t add up. They start with the US price of $399 convert to Brazialian currency and then start adding on taxes and retailer market. The first problem is that the starting $399 may not cover sales tax which is different in each state in the US but it does presumably already cover a load of other taxes (import etc), and it does already cover the retailer mark up in the US.

    The second problem is that if you start with an inflated price before Brazilian taxes then you end up with a much more inflated price after it. So every $ pre-taxes ends up $$$ post taxes because everything is a percentage on that starting price.

    The final problem is the Sony Brazil cut they are so generously giving up. Isn’t there a Sony US cut in the starting $399 price already? Wouldn’t that be the Sony Brazil cut for a product sold in Brazil?

    I think politically there is something going on and a point is trying to be made by Sony Brazil. There are holes all over the explanation though and they are shafting their customers.

    #7 11 months ago
  8. Fin

    @6

    Sounds legit.

    #8 11 months ago
  9. Belazur

    #3
    @dbaracho

    You are so dumb, is almost hurts.
    Nobody is lying here.
    “Overpriced in other countries”? WTF are you even talking about?
    Check the prices in the USA, Europe, Japan.
    They’re great! Your government is shit.
    Deal with it!

    #9 11 months ago
  10. OmegaSlayer

    @8
    Not selling it as legit but as a really possible scenario.
    Especially since Brazil is a Country that’s very sensitive to bribes.
    Again, I already started reading about people in Brazil asking US friends to send PS4s packaged as gifts.

    #10 11 months ago
  11. dbaracho

    #9

    Am I dumb? So tell me how PS3 costs something like $250 and in brazil is sold for R$ 900,00?

    And for that matter PS3 lauching price was $300 and in brazil R$ 1800,00. So, explain to me how exactly that math works genious?

    PS.: microsoft didnt bribe shit, it just couldnt, it wouldnt work, cause import taxes are the same for every console (that aplies for nitendo too), and for PC components. The only overprice we see here is $ony P$4.

    Plus, fiscal sigil in brazil is the same as shit, if microsoft had bribe some1, it would be a scandal, and it’d be easy to find out.

    Last, but not least, we had a lot of press calculating P$4 price with brazilian current taxation, and we new before $ony drop the bomb (i mean, price), that it’d cost R$ 1.800 (reais, not dolars).

    So if u are a ignorant pig, just google it, and u’ll find out who is dumb and who isnt.

    #11 11 months ago
  12. Wesker_Evil

    LIES! LIES!

    AGAIN: XBox One here: 2.200. I guess Microsoft have a pact with the devil to earn magic powers and don’t pay taxes!

    Well, I guess @7 explained all the points

    #12 11 months ago
  13. TheMedici

    First, Brazil is know as the most corrupted country in the world. I have a friend who work as a tax supervisor, he says he would never work with brazilians.
    Second the price of the XBOX One in Brazil is lower because the XBOX One will be produced in Brazil, there is only one place that makes PS4 and is in China, so Microsoft doesn’t need to pay import fees.

    Third if you add the price for producing a PS4 (390$) plus the retailer value (other 390$, Brazil guys), and then start to add all the taxes (in Brazil there is something called tax over tax) you get to more then 4000 reais, that’s why is so expensive.

    #13 11 months ago
  14. Wesker_Evil

    @13

    In the Sony explanation, the “producing value” is US 390.

    So…The producing price is the final value in USA?

    And just chek it out

    PS4 : R$858
    Taxes – 63% – R$858 : R$540,54
    Retailer – R$875

    Final Value – R$2.273,54

    Captain?

    PS: And if you see this, the XBOX One don’t even need to be produced here to have the final 2.200… They just did the right mats

    #14 11 months ago
  15. dbaracho

    I wish i knew where XBOX ONE will be manufactured on brazil.

    Thats another lie, it’ll come from china.

    Plus, math doesnt match, $ony is lying.

    Stop babbling about this bribe thing, REGULAR taxes on brazil would never explain $ony price, no matter what.

    Period.

    #15 11 months ago
  16. DanPaiva

    I am from Brazil. I bought the PlayStation 4: Launch Edition at amazon.com back in June.

    I selected the most expensive/fast shipping available to Brazil.

    Amazon.com does all the import work for me and delivers the PS4 at my door, BEFORE the oficial brazilian PS4 release date. It charges me for that import work though.

    Here’s my PS4 amazon.com order total, to be delivered in São Paulo Brazil with Express shipping:

    Item(s) Subtotal: $399.96
    Shipping & Handling: $36.98
    Import Fees Deposit $415.62
    Grand Total: $852.56

    US$ 852,56 is around R$ 2000,00 – 50% of the R$ 4000,00 Sony wants to charge for the PS4 in Brazil.

    If you are from Brazil, please, use amazon.com and save yourself R$ 2000!!!

    #16 11 months ago
  17. Dragon

    @16,
    “Import Fees Deposit $415.62″
    So including official imported price, it will be cheaper buy from Amazon.
    Around the same cost as X1.

    #17 11 months ago

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