Sony's coherent marketing strategy

[NJ5]

MikeB said:

I think it would be nice to include VAT rates in your diagram.

For example, a 40 GB PS3 costs 399 Euro in Belgium which includes 21% government tax (84 Euro).

As far as I know, that's not how VAT works... 399/1.21 = 329.75 € (price without VAT). Therefore VAT is 70 euros.

But, since we are talking about currency conversion, people should know that there's more involved than just VAT:

- Import taxes (since PS3s are manufactured outside the EU).

- EU recycling fees.

- Higher retailer margins.

- The US$ is falling in value.

Consider all that and the prices are probably about the same in the EU as they're in the US.