Sony says Brazil's $1,850 PlayStation 4 price "is not good for the PlayStation brand"

"We are in this together!" says Sony.

by

Sony has responded to the news that the PlayStation 4 will cost the equivalent of $1,850 dollars in Brazil, saying that the high price is "not good for the PlayStation brand."

Addressing the complaints that have arisen following last week's announcement that the PlayStation 4 would sell for R$3,999 in Brazil, Sony's Latin America general manager Mark Stanley said "we have read thousands of your comments and heard your frustration loud and clear."

"We want to emphasize that it isn't in the interest of Sony Computer Entertainment America to sell PS4 units at this high retail price, as it’s not good for our gamers and it’s not good for the PlayStation brand," he added.

Stanley explained that 63 percent of the R$3,999 will go to import taxes.

"There is a lot of confusion and inaccurate information spreading online about Brazil’s import tax policies online and the PlayStation 4 retail price, so we’d like to set the record straight: of the R$3,999 gamers pay, 63 percent of the retail price goes to offset the various taxes that are applied in the process of importation. Some do not consider the IPI on the distributor price and PIS/COFINS on retailers price and much less, include the ICMS and ICMS-ST taxes. You can see a true breakdown of the price model at Valor Economico. The other 15.5 percent goes to retailer margin and 21.5 percent to PS4 Transfer Price (equivalent to USD$390)."

"We will continue to talk with the relevant government agencies to help us reduce the heavy tax burden that gamers, retailers and Sony Computer Entertainment America are paying."

Looking to the future, Stanley said Sony would be investigating the possibility of manufacturing PlayStation 4 units in Brazil--as it now does with the PlayStation 3-which would cut down on taxes. "Our primary focus right now is to ensure we are in full compliance with Brazilian import tax laws and look ahead the opportunity to locally manufacturing the PS4, which will significantly reduce the retail price. Sony Computer Entertainment began locally manufacturing PlayStation 3 in Manaus this past May and it immediately made PS3 more affordable to gamers in Brazil."

"We are doing everything possible at this moment to reduce the PS4 price for you," Stanley concluded. "We are in this together!"

Discussion

398 comments
PlatinumPaladin
PlatinumPaladin

That right there is a lot of fancy words and acronyms. All I got out of it was 'piss coffins'. :-D

Diegoctba
Diegoctba

I think it's a good price, here in Brazil we like to pay a lot for good things, and mock the people who can't buy. It's cultural.

veryDERPY
veryDERPY

brazil get's dicked when it comes to imported shit. a camaro there costs more than a 7 series here.

iHarlequin
iHarlequin

This is utter bullshit. Sony is lying and trying to blame a gov't's economic policy for it. Did you know they (Sony) are using as the price that Sony Brazil has to pay per unit of console the same price the PS4 costs at retail in the USA? Then, the margin of profit they're giving to retailers is -also- of USD 400,00. That means that, while in the U.S. Sony is going to make roughly 200 USD per console, and the retail another 200 USD, in Brazil both values are -doubled-*. Not only that, but while all the taxes for importing electronic hardware sum up roughly 70%, they're arguing the taxes they're having to pay border  300%. They provided the values for one of Brazil's largest news network to make a small table (http://s2.glbimg.com/68DjkMbq-bzlZWyyywscCr3_fE4=/s.glbimg.com/jo/g1/f/original/2013/10/21/preco-ps4.jpg), you can have a laugh at their discrimination. They're trying to fool us into believing that the taxes cost triple the product's original value alone.

*this is the so-called 'Brazil profit' I told you before, which is why car companies usually make two to three times more on each car sale in Brazil than in other countries. Do you want to show Sony that, as a gamer, you give more importance to their super-profit policies than car buyers do to car companies? BOYCOTT THEM, Brazilians.

n0xinab0x
n0xinab0x

Americans have always air dropped food, medical supplies to countries that were either poor or the leaders were tyrants (Somalia). 

So I've decided to start my own charity organization. Where we will have planes parachute PS4 consoles all over Brazil. 

viva la resistance!

Saketume
Saketume

Messed up Brazilian prices for sure.

For no good reason I'll list some prices from my home country Sweden as comparison (I'm bored ok).

PS4 Console 3989 SEK ~ 626 USD

PS4 Games 649 SEK ~ 102 USD

PS3 Games 599 SEK ~ 93 USD

PC games 399 SEK ~ 63 USD

Needless to say I'm currently a PC gamer. PC hardware scales better with international prices.

Thanatos2k
Thanatos2k

Both the consoles are retardedly expensive in Brazil.  I'm sorry, Brazilians, get your corrupt government to change their policies.

Techtroll
Techtroll

I wouldn't be suprised if this is some kind of tariff racket the Brazilian government is involved in

dipdish
dipdish

PS consoles are expensive everywhere except US. 500 GB PS3 + Last of Us bundle is around 470 dollars in Turkey. I wonder how much I will pay for PS4.

fandangobr
fandangobr

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!!!

RicanV
RicanV

Question for the Brazilian community: If you subscribe to PS+ do you also get an instant game library with free monthly games? In the US our selection is different from the European side.

bunchanumbers
bunchanumbers

time to start a business smuggling ps4s into Brazil!

drodriguesaar
drodriguesaar

I read in another article that the gamers from around the world liked it. Because they say that playing online sessions of games with brazilians is a mess....This is really true? =D

thanxforplayin
thanxforplayin

Is this why they stopped importing Brahma here 

RigamortisADHD
RigamortisADHD

@Saketume No one cares that you're a PC gamer. Go enjoy your PC rather than commenting on a Ps4 post.

mikegamer
mikegamer

@lfchavier ipi, cofins and pis are recoverable taxe, which means the company will receive them back in their fiscal book. So they cannot be added to the product cost. The only time those taxes are paid and should be included is when they are sold by the retaler, so the is no 2x (ipi, cofins, PIS) like the site says. Also the icms amount vary betweens state no passing 19%, and you dont have 2 pay them twice. Sony pays the icms st and then only the retailer pays the difference between the icms of their state and the amount paid from sony.

iHarlequin
iHarlequin

@Thanatos2k I'm sorry, you have no idea what the real situation is. Look up 'Brazil profit', look up how our taxes work, and maybe you'll have a remote idea of the truth - don't try telling us what to do when all you see is the end price of a console, which was intentionally bloated by the company selling it.

Techtroll
Techtroll

Yeah because those countries don't have a free market or consumer protection laws so fake retailers can mark up the sticker price especially where there's little competition say one or two retailers sell it and no one else

Tuckpoint
Tuckpoint

@dipdish That's not Sony's fault, that's the governments fault.  'Murica is still knee deep in a recession, politicians are doing anything they can to bring companies to the states despite the current administration trying to take alllll of the money and spend it as wisely as only the most inefficient government can.  All politicians of all parties are career politicians, that title hasn't served its populace for decades.  Once it was a term of service, now it's 174,000$/year and free health care.

danielbirchal
danielbirchal

@fandangobr The downside of that aprouch is that you don't have any warrant since brazillian Sony doesn't support imported product! But its a much better thing to do than buy it for the double of the price! 

Techtroll
Techtroll

Great advice hate to see brazilian gamers not be able to enjoy something nice like the ps4

mikegamer
mikegamer

@fandangobr You know what is interesting, You just pay all the taxes that Sony has, minus the profit of both sony Brasil and retailers, and look you paid half the price they want to sell. And people still defend Sony Brasil.

dipdish
dipdish

@fandangobr Aren't there any guys, who purchase the consoles and games from US, with special and highly illegal ways to sell them to you for a better price? 

drodriguesaar
drodriguesaar

@RicanV First: We don't have a PS+ subscription service...If we want to subscribe the PS+ service we need to create a PSN account using a US address....So we get the same content that US people get...

RicanV
RicanV

@bunchanumbers "These 17 PS4's are all for me. I have OCD and have to buy things in 17's!"

danielbirchal
danielbirchal

@drodriguesaar Most brazillians don't speak english! So if you can't understand wtf people are saying must be at least more dificult to do team things... 

danielbirchal
danielbirchal

@thanxforplayin No! The brazillian govern LOVES to export and lowers every tax they can to do so! It must be something else! 

lfchavier
lfchavier

@mikegamer @lfchavier all of that recovery is computed in the calculations done in the website, and even then the taxes play a big role (particulary IPI)

Thanatos2k
Thanatos2k

@iHarlequin @Thanatos2k The article specifies - 63 percent is import taxes.  Brazil is charging TWENTY FIVE HUNDRED DOLLARS in taxes for the console.

So yes.  Brazil is mostly to blame here.  How could they not be?

dipdish
dipdish

@Tuckpoint It's not all about Sony. Same thing goes with many companies here. Especially, Microsoft! Everything that has a Microsoft brand is extremely expensive here. 

Don't get me wrong. I love my PS console, and Sony for manufacturing it. I wish, at least somethings were equal for all of us. 

And, politicians own everything here. 

Saketume
Saketume

@danielbirchal

Very true but if it's half the price then he could just buy another one if it breaks and still don't pay more.

Tuckpoint
Tuckpoint

@danielbirchal @thanxforplayin You are assuming a government and it's politicians love anything more than running their fingers through your money.  I usually preach "don't assume anything if you can help it" but I have found it's pretty safe to assume all politicians are a steaming pile of sith.

iHarlequin
iHarlequin

@danielbirchal I hope he is. Sony is blatantly lying, I wouldn't be surprised if main branch Sony 'sacrificed' the head of Sony Brazil in order to get less negative feedback from the population. They bloated the costs of -everything- (the price they pay for consoles, the taxes and the profit given to retail stores).

danielbirchal
danielbirchal

@Tuckpoint @dipdish Man, in most cases ehat you're saying would be right, but this time around it doesn't make sense!

Sony is having a REAL hard time arround here to explain to all major brazillian News network what can't be explained: how can a console that is 20% cheaper than the rival everywhere else can become 100% expensier than the rival! 

MS can blame the govern for the high xbone price but Sony can't do it for the ps4!

I think brazillian Sony president may be unemployed soon!


Tuckpoint
Tuckpoint

@dipdish I might sound like I'm trying to defend Sony in my comments but that's not the case.  I do not fanboy anything as a brand name is even more shallow an icon than a Nationalists reverence of a flag.  Everything tech related there seems to be insanely priced and I wonder how anyone can even justify the purchase of something marked up so high.  I still think its the policies of the government that's causing these prices, not Sony or MS trying to make sales.

dipdish
dipdish

@drodriguesaar God, no. = ) But, we have that special services in Turkey.


RicanV
RicanV

@drodriguesaar @dipdish @fandangobr Nobody answer her! 

Tuckpoint
Tuckpoint

@mikegamer @Tuckpoint @danielbirchal @thanxforplayin Agreed, the same sort of thing happens in the US with 15% rate on investment gains, many of the rich able to bypass even those low rates with offshore accounts in places like Morocco where there is no income tax that I am aware of.  These sorts of things usually have me grabbing my pitchfork and aiming it at politicians.  Nothing will change, just as with your situation, the rich lobby too much for it to be possible.

mikegamer
mikegamer

@Tuckpoint @mikegamer @danielbirchal @thanxforplayin You can see a lot of brazillian comments saying we pay too much taxes, but the reality is , to favor rich people our govern choose to tax more the products and less the income, so the rich get way less affected and they can receive the same money either way. A lot of politicians try to change ou tax model, but is hard to be approved, since all the rich guys who finance those politicians elections dont want any change at all.

mikegamer
mikegamer

@Tuckpoint @mikegamer @danielbirchal @thanxforplayin In Brazil the rich have a lot of benefits, the most improtant one is taxes. since Brazil main tax income comes from products and sales and not from Income and properties. The middles class pays most of the countries taxes through buying products, and the Rich that has huge income pay a very low tax over it. In 1st world countries the opposite happens. The taxes from income and properties are the biggest income for the govern, so they can low the products taxes and prices easily. I recently watch a very interesting video from the guy who is chief of finances on the "Receita Federal" and he explains why with this model of taxes only the middles class pays the country bills and the rich get richer.

For example, or top income tax is 27,5% over you salary. In germany they get up to 40%.

Tuckpoint
Tuckpoint

@mikegamer Oh we complain and then go ahead and buy as well.  Apple has always been over-priced, everywhere.  I'm not trying to shoot down your corporate greed argument here, I would just like to know who specifically is responsible.  It's hard to find those facts when they don't present them for the express purpose of being shady and not getting caught with their hand in the cookie jar.

mikegamer
mikegamer

@Tuckpoint @mikegamer @danielbirchal @thanxforplayin The reason this happens, is that different from the US, in Brazil people complain about the prices, but still buy the products, so for the companies, why change the price if people buy? sometimes they try the market, like toyota launch their Etios car, they elevate the price of the car like 5k more than the real price. As the car did not sell as expected they reduce maybe a month later 7 k from that price. But they do this all the time and most of the time, they still sell well. So partially is the brazilians fault, they complain but still buying, maybe if they dont buy the overpriced products the companies would change. That's why I am sure that Sony Brazil is doing this for pure greed. Like apple does. You know that An ipad 64 gb costs more than 2000 dollars here?

Tuckpoint
Tuckpoint

@mikegamer @Tuckpoint @danielbirchal @thanxforplayin yea I've seen this brought up several times now.  I'm still unable to find an answer as to why it is that way though.  I mean I see people screaming GREEEEEEED, and I do not disagree.  But there has to be a policy, by someone, some corporation or some government that makes it so.  

I'm not saying you don't have a right to be pissed off about this, I'd be ultra pissed too.  I'm simply not buying the next generation console at all until all this hype/console wars/hyperbole dies down enough for me to make an informed decision.

mikegamer
mikegamer

@Tuckpoint @mikegamer @danielbirchal @thanxforplayin Imagine now if mercedes was cheaper in US than in germany, actually lets say the mercedes is half the price in the us than is in germany even though there are import taxes to the mercedes car get to US. So, that is exactly what happens in Brazil, is more expensive for a brazilian buy a car made in my Brazil than is for a mexican buy the same car made in  Brazil. BTW the mexican are buying the car in mexico imported from Brazil.

Tuckpoint
Tuckpoint

@mikegamer @danielbirchal @Tuckpoint @thanxforplayinStill not the companies fault and I'm hardly a corporate lobbyist.  If you have few choices in cars in your country, or a car manufacturer holds a monopoly then yes they can charge w/e they want for their piece of crap and you're basically forced to pay the price if you want a car at all.  That's why people say competition is good/healthy for an industry.

As for your "About taxes, all that make a product be expensive happens during production, the few taxes that happen during the sale" comment, eehhh, I'm not sure I agree.  Obviously discount prices for assembly drive the price down, the less something costs the less you have to charge for it.  But no that doesn't make the price.  If it's manufactured in your country, it's cheaper.

I've used this line a few times already but I guess I'll use it again since I think it's relevant to our conversation.  A Mercedes Benz is a wealthy mans car in the USA because of import taxes.  A Mercedes Benz is a taxi cab in Germany because it's manufactured there and is not suffering the import taxes.

I'm guessing from your grammar that you are Brazilian and English is not your native language.  I think you and I may be suffering from a language barrier.  I don't speak your native language so please do not take this as some sort of speak english better BS, I just feel maybe somethings being lost in translation here.

danielbirchal
danielbirchal

@Tuckpoint @danielbirchal @thanxforplayin 

WTF?????

Man, lets start with the basics!

Brazil IS NOT A COMMUNIST COUNTRY! It NEVER WHERE!

Yes our polliticians ARE bad!

The taxes ARE high!

BOTH MS AND SONY ARE IMPORTING AND PAYNG THE SAME IMPORT TAXES!

MS is selling a 20% expensier console at HALF the price, and Sony is trying to make a quick buck sinse they think we are all stupid!

It's too much of a conspiracy theory assuming that MS would have a discount tax! Specially a THAT HUGE ONE! ONLY ONE THING CAN JUSTIFY DOUBLE THE PRICE AND THAT IS GREED!

Why would the govern favor MS over Sony??? Both are foreing companys AND WE STILL HAVE LAWS!

Fun fact: Brazil capital isen't Buenos Aires, Rio de Janeiro or São Paulo!

mikegamer
mikegamer

@danielbirchal @Tuckpoint @thanxforplayin The car price has nothing to do with this, the car companies charge more in Brazil because they know it will sell anyway. The profit in Brazil is the biggest in the world, that's why more and more companies decide to produce cars and sell them in Brazil. You pay premium price for a piece of crap.

About taxes, all that make a product be expensive happens during production, the few taxes that happen during the sale are not the reason to a car be made in Brazil and sold in Mexico for half the price. This is company greed just like Sony is doing.

Tuckpoint
Tuckpoint

And you are assuming just as I am when you comment "No! The brazillian govern LOVES to export and lowers every tax they can to do so! It must be something else!"

No one can know for sure what a politician thinks other than the politician itself.  Re-read your comment there because for myself hearing someone claim that their government LOVES TO LOWER TAXES is mislead or misinformed.  Even the Republicans of my country, who tout lower taxes and less government are all about widening the tax base, also known as 'take more money from the poor people so the wealthy can have another yacht".

Tuckpoint
Tuckpoint

@danielbirchal @Tuckpoint @thanxforplayin I thought I stated that in my comment?  I am assuming the worst of your politicians and everyone's politicians.  I consider that silly on my part but it's a pretty safe bet when considering politicians.

I don't know much about communism as I do not live in a communistic country, I only know the propaganda spewed forth by pro-capitalism advocates.

What you're saying however is that your Brazilian companies are purposely selling your cars to you for an inflated price and Mexico for a highly discounted price.  Why?  Because the car company is evil?  Are you suggesting that Sony is purposely driving prices up in your country so they can keep it cheap for Americans?  Why would they have a factory manufacturing PS3's in your country so they can avoid the import taxes?  Why would a Japanese company go out of their way for Americans?

Sorry but that's too much conspiracy for me to agree with.  I do not know for a fact that MS gets tax exemptions but with their new multi-million dollar tech center being built in a communist country out of MS's pockets, I would feel much safer assuming they got a tax break for it since the government is only ponying up around 20% of the money needed to build it.

danielbirchal
danielbirchal

@Tuckpoint @danielbirchal @thanxforplayin No i'm not assuming anything!

It's a FACT that the economic polics used by brazillian depends on exporting to survive! Its a fact that you can buy a car produced in a brazillian factory cheaper in México than in Brazil! One of the most used economic indicators in Brazil is the "balanca comercial" witch represents the amount of Money spent on imports/ amount of Money spent on exports! 

You just don't have a clue how things works around here so you are the one assuming things here!