Topic closed pending deletion. I did not understand the theory correctly as described below.

You are squaring the PPP ratio when you multiply the price ratio with the PPP ratio. The ratio of the prices is essentially a way to estimate the PPP ratio.

For example. Lets say country A and B have a GDP per capita of $40000. We want to estimate the PPP in B relative to A by comparing prices of a console. Lets say it costs $400 in A and it costs $800 in B. The PPP of B can now be estimated to $40000*$400/$800 = $20000.

Now if we apply this to your calculations we'd get:
A: 400, GDP(PPP) 40000, Ratio 1
B: 800, GDP(PPP) 20000, Ratio 4 (!!)

We end up with 4 instead of 2 because the PPP is squared.

Bottom line: Use the nominal GDP per capita.

OK. Closing topic on that basis.

The only way to use PPP GDP there is to have all the prices in "PPP-space", but the only way to convert from absolute prices to PPP prices is to use the PPP ratio, so it becomes a pointless excercise that will just cancel itself out.

If you use nominal GDP there instead it will work out. You could add another column with a homemade "Console PPP" by dividing the Nominal GDP with an average of the final price factors.

You could find the PPP ratio online, or by manipulating the data on Wikipedia as follows: (GDP Per capita (PPP))/(GDP per capita (nominal).

You would get the following matrix for relative prices (assuming your initial table of prices was correct):

So you can see Europe is still getting screwed, but it's not nearly as bad as your initial numbers had it. In fact, you could argue that the ratios might just be a result of the extremely weak US dollar right now.

Thanks for taking the time to calculate that, but if the numbers don't seem worse than everyone knows them to be (and 2x would be that kind of  number) then it doesn't seem worth posting a topic because it could concievably be countered with "higher retailer margins" or "VAT is higher" or "weak US dollar".

Of course, the total cost of ownership probably has an even higher difference e.g. £40 games vs. $50 games.