Because they can.
They rip us off.

There is no free ketchup in mcdonalds for example.
Mcdonalds sells little mini plastic things with ketchup in it for 50 euro cent each in Holland.
People on average pay 1 euro just for ketchup or mayonaise over here at mcdonalds, that's 1,40 dollars just for ketchup. 
Also no refills over here.

http://webarchive.nationalarchives.gov.uk/+/http://www.berr.gov.uk/whatwedo/consumers/fact-sheets/page38311.html

• For up to six years after purchase (five years from discovery in Scotland) purchasers can demand damages (which a court would equate to the cost of a repair or replacement).

cool,i thought it was just online purchases that had a longer time period,

all those consoles not replaced after a year,when this PS3 slim breaks i will be off down the shop i bought it from now,thanks,and my TV

You need to consider that outside of the normal warranty it's up to you to prove it was a manufactured issue and not general wear and tear. This normally involves getting a qualified engineer to look at it and then getting it repaired. I don't think the cost of the engineer will be covered so it may not be worth doing for a lot of things.

You also get 2 years of warranty in Europe.

oh so when the blu ray drive goes it is my fault,but if it just bricks then i think i have a chance,

but tv's,washing machines,fridges etc,i'm defo going back to the shop :),even after 4 yesrs now,worth a try,i keep reciepts and all that

Here in Sweden we have a 25% tax on Video games!(Excluding the shipping costs into EU and the other hidden EU taxes).
X1 499$ would cost 625$ plus the shipping into the EU(and Sweden) that would translate into a 660$ which seems pretty accurate looking at the updated X1 prce in several stores here gives me 4495SEK= 683$ (515€)

Should come in at about 1000 for us Aussies add another 100 or so for New Zealand, joking aside even when the Aus dollar was higher then the US we still had to pay more for games. 60 for Americans= 100 for Aussies, it makes total sense.