There are several reasons why we have to pay more in the UK than in the US.

1. Tax: 17.5% VAT and 10% duty. Thats already a 27.5% increase. Not sure about the tax rates on business but it will be higher than the US.
2. Cost of living. UK has a higher cost of living than the US.
3. Exchange rate. The £ is very strong against the $ at the moment. It is curently about 1:2. remember that not to long ago it was only 1:1.5

Did some checking on business tax. Corporation tax (corporate tax in USA) is about the same. Employer NIC is 12.6% in UK. USA SSC is 6.4%. In the UK companies also have to pay Capital Gains tax (not sure if this applies in the US). Property tax can't be compared since it varies with local government in both countries..

 Where do you got the 10 % duty? There was a duty for consoles (1.7%) but as far as i know there isn't any now. You also doesn't have to pay any on handhelds.

Link (german):

http://www.heise.de/newsticker/meldung/74495 

http://www.zoll.de/faq/reiseverkehr/einreise_nicht_eg/index.html#einreise_nicht_eg2 

 you can get this deal now at www.gameplay.com if anyones interested. there is a choice of games you can get free, not just resistance and motorstorm.

I would say it;s getting the consoles into the area. My gues is that Sony/Nintendo/Prob Microsoft manufacture a lot of their consoles in China/Japan Area, which is only a short (relative) journey across the pacific to the US. Where as to get from that area to Europe, it would be a long journey over land (which I presume is more expensive than by boat), so cost are going to be added there. Also, as Europe is still a small market compared to the US, the companies have no intention of putting factories here. Even though, I'm sure if they put them in Romania or other Eastern Bloc countries, you could make them as cheap as you make them in China. For instance, the Romanian minimum wage is 8x less than it is in the UK! I think that's the reason behind it. You have also got to remember American to pay a VAT kinda tax, but it avries by state (some don't have to), so the $600 (previously) PS3, would probs be $650. But it's still extortionate.

It happens with most good though, even European made goods, so I'm confused as to why in general things are more expensive. As I mentioned in another thread, we pay an extra $8000/£4000 for a VW Beetle (I know kinda random, but I knew it would be made in the EU), and I can't think why that would be more expensive. As most reason stated here don't apply (and would actually put the price up for the US), ie transportation, inport tax etc.

Import duty. This will apply to all goods that originate outside of the EU. As far as I am aware no PS3 are made in the EU.

 Ok. I try to explain how the differences (at least some) can be explained:

 First:

You have to pay banks to exchange money from one currency to another. This fees are quite high (for "normal customers about 5%). Ok these company's are big players so lets say 1%. 

Second:

Companys take "insurances" for the risk of changing exchange rates of currency. This insurances cost 3-35% of the exchange value. Depending how long the "insurance" goes and what currency's are used. The € and the £ are quite high at the moment and most likely will go done. So my guess is, the current % for these currency's to dollar is about 10%. 

Third:

The shop owners get a piece of the pie. This piece is bigger in Europe than in the US for different reasons: Higher taxes on the profit, higher costs for the employees etc. So i also guess for this some "facts": I think the american shop owner gets about 3-5% of the price of the console. The european shop owner gets 5-8%. Yes i guess that, but if you google about thinks like that you can find examples for Television with the difference. (On a higher level though) . 

 So, lets calculate how much Nintendo is getting for a WII in US and UK based on the data above.

This isn't that big of a difference (3%) anymore, is it?.

This explains all consoles except Sonys. The PSP is out of the range "reasonable" for me. And the PS3 i think you have to compare to the $599 model. At least Sony does (they fade out the $499).  That would be about 17% right?

 Sorry now. Not to all goods.  Here a link in english. 

http://www.gamespot.com/news/6152983.html

No duty on "handhelds" and "video games of a kind used with a television receiver". Don't know about games, but no duty also on software for PC, so i don't think so.

However there is a duty on DVD's or CD's (3,5 % ) and DVD-Players (13.9%).

Thanks I didn't realise that. i didn't know that duty on consoles was originaly so low either. I thought it was about teh same as must other CE devics.

Thanks I didn't realise that. i didn't know that duty on consoles was originaly so low either. I thought it was about teh same as must other CE devics.

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