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Lafiel said:

Well, as there is less disposable income available for people, less will buy a console and those who do have less money to spent on games than ppl in the big economies, which results in console hw needing to be pricier to make it profitable to sell it and lower sell-through volumes means shops will want a higher pay-out from selling each individual items > higher prices (> less people will buy - it's a self-reinforcing cycle).

This is probably a better explanation than mine. I was thinking that because the market is much smaller, they order less quantity so they have a price per console higher, but still the difference is too much for this, and it should be balanced with the lower local cost of storage.