A firestorm of internet fervor broke out when it was announced that the PlayStation 4 would cost R3,999 (about $1,840 USD, €1,330, 1,135 GBP) in Brazil. Sony Latin America general manager Mark Stanley took to Brazil's PlayStation Blog to explain why the price is so high.
"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."
"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."
"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!"
For comparison's sake, the Xbox One is priced at R2,200 (about $1,010 USD, €730, 625 GBP).