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This is nothing new. In India the base PS3 is still sold for $899 - 500 more than in the US and best of all - no PSN and each game is $79.99.

Wii costs close to $570, 360 - $500+ (XBL available)

This is despite the purchasing power of ppl there to be 30% less than in the US

This is exactly why pirating happens there - PS3 $750 modded. Games $5-$6. Similar situation with the 360.

And this is exactly why I buy when I visit the US - saves me a bucket load of cash