NJ5 on 25 June 2008
| The Fury said: Sony will do a price cut also, in the EU. 50Euros or £50, lowering it to the Price of the 360 Elite price. in the end, because of exchange rates this is still above the price of the PS3 in the US. And they might just increase EU sales to counter any effect the price cut has in the US. (£300 at the moment = $590, so £250 = $492) |
As usual, people who convert currencies forget to take taxes out of the price.
This is how you do it:
VAT in UK - 17.5%
£300 / 1.175 = £255 (price before tax is applied)
£255 = $502
That's a pretty big difference in price. There are many countries where taxes are higher (Scandinavian countries - ~25%, Portugal = 21%, etc)
USA prices are before taxes, so to do a fair comparison you must eliminate taxes from European prices too.
PS: If I had a penny for each time I've written a post like this, I'd probably have enough money to pay the VAT of every product I'll ever buy.
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