PS4 costs $1,850 in Brazil

Next-generation console going for 3,999 Brazilian Real in South American country due to import fees and taxes.

by

The PlayStation 4 will cost 3,999 Brazilian Real ($1,850) at launch in the country, Sony announced today on Brazilian PlayStation Blog. Games will cost R$179, or around $83.

The PS4 will go on sale on November 29 in Brazil, the same day as the console debuts in Europe.

According to Kotaku Brazil, Microsoft's Xbox One will sell for R$2,200 in Brazil, or around $1,016.

The discrepancy is due to import fees and taxes, which make up between 60 and 70 percent of the cost, according to a Sony Brazil representative speaking with G1.

In the United States, the PS4 will sell for $400, while the Xbox One will be available for $500.

Discussion

1929 comments
brunocj2
brunocj2

I'm brazilian, Eddie, and taxes are not only the reason. I live in the UK and have been a gamer for years and never played in Brazil. But it seems that brazilian players are not very fair when playing online games. They seem to have a reputation of spoiling other people's games. They will group up and find each other, then they will kill companion players for their loot, will hassle them for money blackmailing them with bad report, amongst other problems. Apparently Brazil had a separate server for League of Legends because of their bad behaviour towards other nationalities and players, which was celebrated in the streets of other countries. There's a full report on it made by Folha de SP, the biggest newspaper in São Paulo, unfortunately it's in portuguese. If you can translate it somehow it makes a very interesting read. Link below. So Sony in Brazil has decided to put the price up to try and contain the number of brazilian players out there. Punishment?

http://www1.folha.uol.com.br/tec/2013/10/1358688-gamers-comemoram-preco-do-ps4-no-brasil-por-manter-brasileiros-longe.shtml

torresmu
torresmu

Sony is not the first world company to blame the taxes for a high price. Hyundai enter in brazilian market about 5 years ago, they launch the I30 with a start price of R$ 53.000,00 (or U$ 24.423,96), with a engine 2.0 with 145HP. Here its a fair price, they get the first place in sales in they category. This year, in february they launch the "new I30", new design, beautiful, but with a engine of 1.6 with 122HP, with a price of... R$ 75.000,00 (or U$ 34.562,21). Sales? less then 500 units, the "older" version have a fair price and was sold most the 3.000 units. After 8 months of low sales they finaly lower the prices, now a Hyundai I30 its sold by R$ 64.000,00 (or U$ 29.493,08). PAY ATENTION... U$ 5.000,00 OF DESCOUNT, AND WITHOUT ANY SUBSIDY, GRANT, AID TAX. They strategy was enter in the market, take a share of and try a ridiculus profit margin. Someone see something similar? Go ahead Sony, put this ridiculus price, blame the tributes and tax, when Microsoft have 99% of the fifth bigger market in the world will be late. 

xglakillx
xglakillx

For many in Brazil, one of the main advantages of the ps3 is the absence of a subscription fee for online multiplayer gaming. Now PS plus will be required for online gaming. PS plus does not even exists for PSN brazilian accounts and the Xbox Live in Brazil  is working just fine (nice content, good prices, etc). The Xbox One is now a much better option for us in Brazil.

Ken_Masters_
Ken_Masters_

Convertion of sony and Xbox here!

PS4 - $1-USD = R$10-BR

XONE- $1-USD = R$4,50-BR


if you convert for the dollar today ($1-USD = R$2,20-BR) you see all the things built-in... Brazil, country of corruption and government crap, I'm not saying the sony or microsoft not improperly profiting but the odd, the wound is the government. If I have a chance to change for America I will...

minatobahram
minatobahram

people of brazil are poorer than usa of course because of salary etc.but irony here is ps4 is way cheaper for richer gamers and way more expensive for poorer gamers.its vice versa,what a crazy world lol. 

supersonic125
supersonic125

haha , alot of sony  fanboys in brazil , are jumping ship to the xbox one , love it

Bilal100
Bilal100

Not surprising,the PS3 first became available in my country for $1500,two years later I bought it for $300 so Brazilians need to wait for about 18 months or so to buy it at a comparatively fair price.

marthavaz619
marthavaz619

Sucks ass man I'm only paying $450 max for the system plus $60 for each game :) SD

crunchb3rry
crunchb3rry

If a tax is more than the product...something's wrong.

we5
we5

their is conspiracy against Brazil for consoles

Julio_Brutal
Julio_Brutal

Whatever. I live in Brazil but I buy it on Paraguay. 4 thousand is a fuckin joke.

bigoth866
bigoth866

I feel bad for the guys and gals down there.

telmor84
telmor84

i would love to see a picture of that price tag ^^. 

jaifrecap
jaifrecap

It's literally cheaper to get on a plane, fly to the US, buy a PS4 and fly back than buying it on Brazil.

sam441
sam441

there is gonna be a lot of console smuggling in Brazil... stupid government  

rogerpenna
rogerpenna

From what I heard, it´s not that the PS4 will cost that much in Brazil BECAUSE of taxes, but that SONY set that price because of taxes. Let me explain:

SONY was not happy with the PS4 price in Brazil with all the taxes, even when producing it INSIDE the country. So they tried convincing the government to lower the taxes so PS4 could get cheaper. The government did not want to give tax breaks for SONY.


So what SONY did was make PS4 price so high that noone will buy PS4 made in Brazil or imported by the company. Everyone will buy PS4s in Paraguay or import from USA and pay 60% taxes, and the government will earn much less money that way AND it won´t create jobs in the country.

blackzio
blackzio

Told you guys we shouldn't have booed Dilma at the confederation cup game, this is her payback. 

Dogswithguns
Dogswithguns

So?.. I can't even find a job around here, that makes PS4 3 times more pricy. 

rpvarela
rpvarela

A translation of Sony Brazilian division's latest announcement:


"A message to the Brazilian PlayStation Nation: We hear you!

Thank you everyone who shared their comments regarding the high cost of the PlayStation 4 in Brazil.

We too, are frustrated with the R$ 4.000 cost and soon we'll be able to show [you] the reasons [for this price].

Thank you for your passion [sic] and stay tuned for more info."


Orinigal text in Portuguese here: http://blog.br.playstation.com/2013/10/20/uma-mensagem-para-a-nacao-playstation-do-brasil-nos-ouvimos-voces/?marketing=soc_br_pl_pl_social_nos-ouvimos-voces_News_tw_post_corp


I'll be honest here: I wasn't interested in a PS4 in the first place. Not really into consoles so much, but come on: who can Sony possibly blame for this price? Even if the Brazilian government decided to go for a 100% import tax on the PS4, the price still wouldn't  be so... off the charts.

I'll wait and see what Sony has to say, but I'm pretty sure that what's coming will be a load of bull.

dantesergei
dantesergei

So same shit as always for the rest of the world.

Kats_RK
Kats_RK

Man that sucks for the  Brazilians.

iHarlequin
iHarlequin

Btw, to prove that half the console's price is Sony's fault: if you import the console, pay the transportation costs (which cost more per unit if you import in small amounts, so you'll actually pay -more- than what Sony is for importing) and the standard taxation on game-related products (70%), you get: (399,99+70*)x1.7 = 798.98 dollars - only 1200 dollars away from what Sony's claiming to be the regular cost, considering taxes. That's considering a *gross overestimation of the transport fee (which would be closer to 35 dollars). That's the cost if you buy the product from a STORE, like Best Buy, and have them ship it over (paying -all- the regular taxes the gov't requests).

iHarlequin
iHarlequin

How can I take an article that uses as its only source a Sony representative? Explain, then, how the Xbox One - which will also be imported, and not produced here - will cost a thousand dollars less? Explain how if you personally do the math, factoring in the import rates of 70% and the 'Brazil cost', you're still 1.2k dollars short than what they'll sell it for? Sony is doing the same thing many international companies do when selling products in Brazil - they sell them for double or triple the price of what it costs in other country and blame it on taxes (car dealerships barely reduced the prices of their cars when they were given leave to sell WITHOUT TAXATION).

JaCkk210
JaCkk210

I am impressed how many fanboys are keeping using the taxes argument.

I am brazilian, i know whats going on here...some people that never been here, just read some paper is talking like an economist....

sony is famous for its overpriced products here...and thats the case.

Taxes ARE high...but not that high..if you can make simple math you will see that...but of course...sony fanatic fans cant do math when it shows something they wont like to see.

geremiasbn
geremiasbn

That's not true, the high price is not government taxes fault, it's Sony's fault. The taxes, considering the price of PS4 in US, should be R$ 2.000, half of the price. Sony its doing some business strategy or just want the price that high.

iHarlequin
iHarlequin

@Ken_Masters_ Ok, bye. The PS4 money isn't fueling corruption, it's just part of our taxation system. We have issues of corruption, but I can assure you that so do the U.S. -- people on both parties there have ties so deep with companies that helped them get elected/where there are that they truly represent them, not the people. But hey, if you want to change countries because consoles are too expensive, go for it - just trust me that you'll never be a true citizen, no matter where you live (coming from someone who's lived in the U.S. and abroad). Second-rate for life.

iHarlequin
iHarlequin

@brunopita An explanation won't change the console's price. He's saying that two-thirds of the console's cost comes from taxation - that's 1333.33 dollars. Standard taxation on electronic devices, and the taxation for the PS4 per its category, is of  (at most) 72%. That means that the console would have to cost USD 1162 BEFORE taxation (apply the standard 72% and it goes up to that). If they charged the USD 400 it costs in the US, + 100 dollars for shipping per unit (which is completely absurd but which I'll use to prove my point), the price would be 500*1.72 = USD 800. They're just bullshitting us.

asmoddeuss
asmoddeuss

@Julio_Brutal Well, also in Paraguay can be expensive, unless is a fake copy ;) (Ciudad del Este ftw). I was living in Paraguay for about 23 years, and I was working in Ciudad del Este (the electronic city and where Miami Vice The Movie was filmed) and man the live of a gamer there sucks big time, it was impossible to buy 1 original game, not to mention that was impossible to play online games. The best internet I ever had there it was a radio internet coming from Foz do Iguazu (Brasil) lol, I think the company name was FozNet. Anyway, just go to Ciudad del Este to buy a PS4, but I am telling you, maybe is cheaper, but it is still a rip off.  I am always sad that my Paraguayan friends need to suffer because of overpriced stuff there :(

asmoddeuss
asmoddeuss

@jaifrecap I had some South American friends going to the states once a year for shopping lol.

BradBurns
BradBurns

@rogerpenna 

Well, Sony manufactures PS3 consoles there now, so it seems to have worked in the past..

iHarlequin
iHarlequin

@rogerpenna The government will earn the same amount of money as if the console were commercialized at a non-bloated price. If we import it from another country and pay the standard import taxes we'll pay the same amount of taxes Sony would import at base price.

iHarlequin
iHarlequin

@rpvarela Only reply Sony can give that might convince me to get a PS4, here, is that it'll come with two bars of gold in the value of one thousand and a few more dollars.

iHarlequin
iHarlequin

@BradBurns @rogerpenna I actually have to side with the government on this one. Companies just want to have free competition without making any commitment whatsoever with the country. At least this way Microsoft, and apparently Sony (I didn't know they made PS3s here), have to install their industry here and hire local labor. It's a 200m+, on the rise market - to not take advantage of the fact that foreign companies -have- to be here would be stupid.

rogerpenna
rogerpenna

@iHarlequin @rogerpenna You are thinking ONLY in terms of what the government would get in taxes. But what about industry, jobs, etc?


Well, let´s wait and see. SONY Latin America is supposed to be giving a more in depth explanation for the reason of the ultra high price.

rodrigopsasaki
rodrigopsasaki

@iHarlequin @rogerpenna This is not entirely true. If I were to travel to the USA and bought myself a console, it would fall under the $500 limit, and therefore I would pay no taxes to the brazilian government.

rogerpenna
rogerpenna

@AlphaSkud @wildamnesia probably a lame joke about the american term "brazilian wax", which is a wax depilation where they remove all hair from women down there.

not sure why they call it brazilian wax. 

iHarlequin
iHarlequin

@rodrigopsasaki @iHarlequin I agree. Personally, I think that if you're earning MW you shouldn't buy a console. I also think that the MW here is shit. The thing is, those taxes are significantly lowered whenever a company agrees to make some commitment, via investing in the country by creating factories and whatnot. As to the cars, that's an extremely dirty move by the car companies - they sell at high prices because the population will buy it regardless, not because of the taxes. Do you remember when there was a period of 0 taxation on car purchases, but their prices only dropped R$1000,00 or so? There's a reason Brazil has a younger car market (as in, our fleet of cars is newer) than the U.S.: we will buy cars regardless of how much they cost.

rodrigopsasaki
rodrigopsasaki

@iHarlequin I don't disagree with you. But I have to say it is very hard having to bare with this prices all the time. paying 70% of taxes on a gaming console, on a car or whatever. And also remembering that the minimum wage here is way lower than any of these console prices

iHarlequin
iHarlequin

@rodrigopsasaki @iHarlequin @rogerpenna That's an option, but I was referring to importing it, and having it go through customs (alfândega). If you go abroad it's true that you can bring up to USD 500,00 in merchandise, tax-free (and I believe they plan to raise that to USD 1000,00) - but then you have to pay for plane tickets, hotel and food. It'll end up costing around 1.6k dollars, which is more expensive than the 800 dollars (I did the math a few posts below) it would take to import it.

roganth
roganth

@rogerpenna Because of the laws in Brazil there is no beach nudity, instead the women wear ultra skimpy bikinis.  Hence the need for waxing/shaving.