UK Console Costs?

[Just_Ben]

davygee said:

Right, I want to put this to bed eventually. Apart from VAT, what other taxes are involved in the importing of consoles to the UK before they reach the store and then the comsumers' hands?

US costs:

Wii - $249
DS - $129
360 Core - $299
360 Premium - $399
360 Elite - $479
PS3 - $499
PSP - $169

UK costs:

Wii - £179 (£152 Ex VAT, $296)
DS - £95 (£80 Ex VAT, $156)
360 Core - £189 (£160 Ex VAT, $312)
360 Premium - £279 (£237 Ex VAT, $462)
360 Elite - £329 (£280 Ex VAT, $546)
PS3 - £425 (£360 Ex VAT, $702)
PSP - £129 (£109 Ex VAT, $212)

As you can see, I've taken off the 17.5% VAT off the UK price and converted it into dollars ($1.95 = £1). If the UK console prices only have to incur a VAT charge, then you can see how much of a ridiculous gap there is in the general price comparisons.

I hope I can clear this up as there is a very large possibility that there are extra taxes that need to occur before a console can appear on the shelves in the UK.

If there isn't, then we are paying the following difference.

Wii - 19% more
DS - 21% more
360 Core - 5% more
360 Premium - 16% more
360 Elite - 14% more
PS3 - 41% more
PSP - 25% more

There is a huge difference with the cost of the PS3!! A 41% increase on the cost of the US model.

 Ok. I try to explain how the differences (at least some) can be explained:

 First:

You have to pay banks to exchange money from one currency to another. This fees are quite high (for "normal customers about 5%). Ok these company's are big players so lets say 1%. 

 

Second:

Companys take "insurances" for the risk of changing exchange rates of currency. This insurances cost 3-35% of the exchange value. Depending how long the "insurance" goes and what currency's are used. The € and the £ are quite high at the moment and most likely will go done. So my guess is, the current % for these currency's to dollar is about 10%. 

 

Third:

The shop owners get a piece of the pie. This piece is bigger in Europe than in the US for different reasons: Higher taxes on the profit, higher costs for the employees etc. So i also guess for this some "facts": I think the american shop owner gets about 3-5% of the price of the console. The european shop owner gets 5-8%. Yes i guess that, but if you google about thinks like that you can find examples for Television with the difference. (On a higher level though) . 

 So, lets calculate how much Nintendo is getting for a WII in US and UK based on the data above.

 

Step:
Customer, without VAT	249	296
Price the Shop pays	241,5	281,2
After exchange currency	241,5	250,3

This isn't that big of a difference (3%) anymore, is it?.

 

This explains all consoles except Sonys. The PSP is out of the range "reasonable" for me. And the PS3 i think you have to compare to the $599 model. At least Sony does (they fade out the $499).  That would be about 17% right?