good explaining prof,i like it

Now, consider VAT, and the numbers are completely different.

Yes they did, the RRP was £129, Microsoft made an announcement it was rising to £159.

I refuse to acknowledge anything that upsets my point. Now what is this Value added tax, and how does it work?

VAT is the european sales tax. Here it's included in the MRSP, so 299€ or 250 pounds are after taxes. In Spain VAT is at 18%, so before taxes, PS3 costs 253,39€. In the scandinavian countries I think it's at 25%, 19.6 at France... you can use 20% as an approximation. 

yes,i agree,what is it going up to, in the uk

do japan and america have no equivalent tax then,at all

Japan I don't know. In USA, the MRSP is without taxes. As an example, California Sales Tax was in 2008 an 8.25% if I'm not mistaken, so you have to pay 299$ for the PS3 and 24,67$ in taxes, for a total of 323,67$. In Europe, that 299€ is the final amount you have to pay, because the sales tax is included in that price. Politicians do this way in Europe so people don't consider the real costs and the taxes we pay.

This is why you can't compare directly MRSPs divided by the exchange ratio, because in USA that MRSP is before taxes, and in Europe is after taxes.

I'm not having a dig at the PS3. I'm talking about how UK customers percieve the value. The PS3 is already on the backfoot in UK. Therefore the 360s revision withit's price will only further that issue unless Sony do something.

I think VAT is to go up to 20%.  Currently at 17.5%.

The USA has sales tax, that varies from state to state, that's added on at POS, iirc.

right i see,americans never seem to mention the extra they pay on here,you just assume they only paid $249 or whatever a PS3 costs these days

all states vary and some have none from what i just looked up,online shopping might be nothing too

but its nothing like european vat of course