It really is a shame for the mass market here in Brazil that will be forced to opt for the Xbox One, but for gamers it really doesn't make much of a difference at all.
The only stores that will be selling the PS4 for this price are the big ones, the small game stores will all be importing from Paraguay or USA and will be selling them at a much cheaper rate (still expensive comparatively to the US, as they do need to make a hefty 50% profit on it).
In the end all Sony did was hurt themselves here, it is preferable to retreat and call a delay on the official launch date until they start using their factory in the country (currently building PS3s) to make PS4s. No one will me buying this official version as: if they have the money they will probably travel abroad and bring it back (get a vacation and a PS4 and still save money on it or opt for the grey market). Retailers are already pissed off at them, knowing they don't stand a chance of competing with the grey market and might retaliate accordingly.
Microsoft thanks Sony for this HUGE publicity boost though, cant get any better free publicity than this.
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