The great PlayStation 3 swindle
It’s amazing just how badly Sony is handling the launch of the PlayStation 3. Every step of the way it seems to be getting things wrong. In the latest bungle Sony seems ignorant of the “Internet” and “globalization”.
Never mind the PlayStation 3, there’s always the Wii
We all know about the well publicized delays, and problems with logistics and manufacturing, but now, as it finally decides to launch the PlayStation 3 in the “rest of the world”, we find that the rest of the world has to pay a premium for not being the US or Japan.
Here’s a list of the suggested retail prices for the “high-end” 60GB Sony PlayStation around the world converted into US dollars:
- Japan – US$495 (¥59,980)
- USA – US$599
- Australia -US$772 ($999)
- New Zealand – US$835 (NZ$ 1199)
- Europe – US$775 (599 Euros)
- UK – US$835 (425 Pounds)
Given that the PlayStation 3 is manufactured in Taiwan, not Japan, and even taking into account the different tax systems in the countries listed, how can Sony charge so much more for the PlayStation 3 in Australia, New Zealand and Europe, than it does in Japan or US?
Hasn’t Sony heard of Nintendo or Microsoft? Doesn’t it know that both the Wii and Xbox 360 have been outstanding successes, and that they are both cheaper than the PlayStation 3?
Perhaps in the bad old days before we had the free flow of information (ie the Internet) companies could get away with large price disparities between different markets. But this isn’t 1981.
While Sony might be able to justify some premium to cover shipping, the special distribution challenges of Australia/New Zealand and Europe, and the smaller market sizes of each country, an extra US$200 is just going too far.
I suspect that what’s actually happening is that Sony was so desperate to do well in the US and Japan, that it has actually discounted the console in those markets.
Sadly, that isn’t going to sit well with the “rest of the world”. I know that if I was a PlayStation fan living in Australia, New Zealand or Europe, I would feel quite outraged at Sony’s pricing strategy.
And sadly, for Sony, with Nintendo’s Wii doing so well, it can’t afford to loose any friends at the moment.
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January 25th, 2007
Plus you can’t get the “low-end”version in Europe. That sucks.
January 25th, 2007
Don’t forget that in Europe, the price includes the VAT (Value Added Tax.) Therefore, it’s perfectly reasonable to expect it to cost 25% more.
January 25th, 2007
This article sounds like it was written by a quiveling little 5 year old who just got punched in the mouth and had his lunchbox taken from him. If you wanna play the GameCube2 or the 6 hour long gears of wahhh on 360 go ahead bro. No one is forcing you to buy a PS3. Everyone knows its hardware and future-proofing is superior to anything you just endorsed so get a life loser and stop whining!
W3LCOM3 CHANG3
PLAY B3YOND
January 25th, 2007
Japan has a consumption tax of 5%, so that would make the pre-tax price of the PS3 in Japan around $US471.
Which should mean that in Australia it should sell for around US$518 (10% GST) and in Europe $565.7 (20% VAT in most countries).
I stand by my original contention – the difference in price is too big.
January 25th, 2007
I’d just like to point out that the price in Ireland, which is part of Europe is actually €629, which works out around $815. I have a PSone, PS2, and PSP and so I’ve been supporting Sony since day one, but I cannot find any reason to shell out that kind of money without any games.
What PS3 Assassin fails to mention too is that, despite all the PS3’s ostensibly extra power and technical superiority (Xbox 360 does have a better GPU though and nobody can say different) none of the cross-platform games look any better than their 360 counterparts (in some cases they don’t look as good at all, just look at call of duty 3). It should also be pointed out that, although Sony have “shipped” around 2 million units to Japan and the U.S. only around half of this figure have actually been sold, whereas the “technically inferior” 360 and wii have been selling extremely well.
I could care less about all the PS3’s PC-esque functions – I have a PC already. I really only care about the games. Every system needs that “exclusive” killer-app. Sony doesn’t have one yet. For me, Sony’s killer-app has always been the Metal Gear Solid series. MGS4 looks to be absolutely amazing and should really be able to show off what is capable with the cell. Unfortunately, it’s not due out till the end of 2007 in Japan and the U.S., which means It probably won’t be out in Europe until Spring 2008. So unless Sony do something drastic in the meantime I’ll be sticking with the 360 until then.
January 25th, 2007
from my understanding, dont all counsoles including the 360, Wii, and PS2 for that matter cost more in europe then in the states… I think you need to do more browsing the web before writing up such BS..
January 26th, 2007
Chad the chump…. It is not perfectly reasonable to accept a 25% premium in Europe that is the most rediculous argument ive ever heard, do you honeslty think that Japan and the US dont have any tax on the PS3?? and do you actually think that it costs Sony $335 USD more to sell in the UK? I think not its GREED plain and simple they think they can get away with charging more here and so they do…… well they screwed up cause I want buy the piece of crud I`ll stick with my 360 and Wii thanks.
January 26th, 2007
and as for the pillow biters who try and bully people into not sharing there views go buy your PS3 and ill laugh my head of when Blue Ray goes the way of Beta max
January 26th, 2007
If you do the math, the PS3 doesn’t cost much more than the 360 did at launch in Australia, & I’m sure all the other countries in question are the same.
$650.00 US – 360 Premium System
170.00 US – Wireless Networking
50.00 US – Rechargable Battery Pack
When you figure everything in, including a 60gb hd compared to a 20gb in the 360 & then the Blue Ray Drive, you could say it is cheaper than the 360 was at launch. IMHO every component in the PS3 is better quality than in the 360. I am getting so sick of people like you, John Posposil, if you don’t want a PS3 don’t buy one you can play Pokemon on the Wii but stop shoveling crap about the PS3 especially when you haven’t a clue what you are talking about.
January 27th, 2007
Sigh.
As always, nice shock figures. Speaking from the UK, though, might I suggest the following:
1) Take into account the fact that 17.5% tax is included in the UK price, and no tax is included in the US price (the tax level is lower there, of course, but I hardly think you can blame Sony for that).
2) Compare the prices to other hardware. Are Sony aware of the 360 and Wii? I guess so, because the percentage markup on the PS3 over those consoles is almost identical between the US and UK markets.
And it’s not just consoles, either. A little online research (you can do it instead of the frothing at the mouth before posting – I find it’s good to do some fact checking before posting, as it can often change an open mind) will show you that the price markup on PS3, Wii and 360 is extremely similar to that on pretty much all consumer electronics over here.
So, perhaps what you’re actually looking at is the great consumer electronics swindle. Which, while I can’t speak for other countries, we’ve known about for decades in the UK.
January 27th, 2007
The console is not manufactured in Taiwan. Do your research.
Some are assembled in China by ASUS (Suzhou). Most are assembled by Sony in Japan. Chips are produced in in East Fishkill NY (IBM@90nm), Oita Japan (Toshiba@90nm) and Nagasaki I/II Japan (Sony @90nm). Blue-laser diodes are done by Sony Shiroishi semiconductor in Japan. Only the Samsung memory and off the shelf IC’s for various functions come from outside of Japan.
January 27th, 2007
I agree. Thats why we should use the internet to spread this information and make sure Sony does NOT treat PAL gamers like idiots.
PS3 is not exactly that much of an exciting console than its predecessor, not worth for us to die for. I think 360 and Wii are much better consoles, not built around some HD-DVD wars and the stupid CELL.
Sony has dropped the ball GREATLY. And im saying this from a past fanboy experience.
January 27th, 2007
sigh…. why do u ppl who know nothing about price levels and ppp make any comment regarding different price levels on goods and services. Please… go google big mac index or ipod index and u’ll see in the “real world”…. price levels vary from country to country and in places like europe, where currency is usually overvalued, things tend to be more expensive.
January 27th, 2007
Well (jedn chang) do you know what you are talking about, because I’m sure nobody else does.
Why jump over all Sony, it’s not only Sony but MS & Nintendo & others as well are charging different prices in different parts of the World.
I have a PS3 & I Love it, I am using it to post this comment from the comfort of my living room chair. I think it’s cool that you can do so many other things with it when you are tired of playing games, I have my music, photos, demos, videos & games stored on it, also I can watch HD Movies with the included Blue Ray Player.
You say “I think 360 & Wii are much better consoles” well bully for you, but that doesn’t make it so, quite the contrary anyone who has used the PS3 comments on the excellent quality of the machine, not so with the 360 or the Wii for that matter. There’s Not alot of Games yet but a whole slew of games are on the way this year.
The PS3 is an excellent bargain when you consider the quality, all it does & everything that comes with it.
You say “I’m saying this from a past fanboy experience” Well that probably explains everything.
January 29th, 2007
You are ignoring cultural differences and buying patterns. Here in the US some of the poorest still have high end game systems. Not because even the poor can afford them! It’s because they will buy a game system before they will buy something they NEED. The lower you set the price the easier it will be for those with less money to buy one instead of food, a bed for a child , or a dependable car.
In rural areas you will find houses that are more like cabins that are dilapidated. They will have a shinny DirecTV dish on the roof though. I repair windows for a living and have seen how people live in their own home. In urban “ghetto” areas people live in conditions you couldn’t even understand. The electricity has been cut off by the utility so they “hack” it back on with coat hangers so their kids can still play console games. Its depressing I know but don’t think Sony doesn’t play to this.
It is my understanding that other parts of the world don’t have the same problems with the poor. In the US we give the poor money left and right… only to see them buy a ps3 or wii. We give them food coupons they trade for cash at .50 on the dollar. I am cynical no doubt but if you have seen what I have seen you would understand.
A company as large as Sony is not as stupid as you think. It’s easy for us to say they should have done x or “look at betamax”. Did everyone forget that betamax was supperior technology over VHS? It’s not cut and dry and the market is fickle. Sony and everyone else is going to find out that over the next 3 years almost nobody is going to be buying blueray or hd-dvd movies. The first crop of HDTV sets are either dying to bad pixels or 4:3 box shade or the lack of an hdmi input. Sure the rich will upgrade but the middle of the line market will not stand for such things. We buy a Tv that we expect to watch until it blows up and that had better be 10 years AT LEAST from today.
Give it time… Tax season is happening right now in the US. Most people get a big refund especially the poor and middle income earners. You will see sales go WAY up over the next 3-4 months.
March 5th, 2007
PS3 appears to be alot more expensive in the UK than US, at £424.99 however bear in mind that in 1995 when the PS1 was released it was £400 and that was 12 years ago! £424.99 isnt as bad as it could be, ie with the first Blu-Ray drives being released at over £500. The way the exchange rates are at the moment, get one from US you roughly paying £250.
July 16th, 2007
Actually the ps1 was £300 on launch cos i was there on sept 29th 1995 to buy mine!
Oh and it was a lot of money when you take into account inflation.