By using this site, you agree to our Privacy Policy and our Terms of Use. Close
NJ5 said:

@Untamoi:

I know that the things I said are often used to try and explain why prices are higher in Europe, but that was not my point this time. I was just pointing out to SlorgNet why a 399€ would probably not get Sony enough money to break even on the hardware. Converting currencies is not enough, at least VAT should be considered in those calculations because it's a significant part of the console's price.
 


I was assuming 599EUR and 399EUR as a baseline, i.e. excluding VAT (which can be as high as 20% in some countries, I think - correct me if I'm wrong). But Sony has cost-reduced the heck out of the PS3, moving through at least two significant changes in the motherboard, according to Nikkei Electronics Weekly. Electronic components drop in price about 30% a year, so if the PS3 originally cost $800 to make, it shouldn't cost more than $560 to make by November. Last but not least, the Chinese yuan has fallen about 6% versus the euro over the past 12 months, so that's another cost savings for Sony (most of the PS3 is made in China) - the equivalent of 36EUR. 

A 399EUR model plus a 20% VAT and 5% fees would come out to a grand total of 499EUR, so maybe that's what European shoppers will see in October. We'll just have to see...