Sony's coherent marketing strategy

[MikeB]

NJ5 said:

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. 

 

Thanks for the correction!

Also local employees (such as support people, for example US XBox 360 RRoD victims are often greeted by cheaper Indian support staff) may cost more and other localizations (like language translation) probably cost more as well.