James Delahunty
4 Feb 2007 9:23
Sony Computer Entertainment's UK boss Ray Maguire, has attempted to explain the high price for the PlayStation 3 (PS3) console which will launch in Europe on March 23rd. Only the 60GB version of the console will be available and the UK price has been set at £425 (approx. $838). Needless to say, since the console costs $599 in the U.S., this has many gamers.
Speaking to the Guardian, Maguire cited several reasons for the decision to set the price that high. The high rate of value-added tax (17.5% in the UK), exchange rate considerations and higher salary payments to UK staff were all mentioned. He also said that UK retailers are taking a larger chunk than anywhere else in Europe, and that there generally is a higher cost of living.
"When businesses trade, they hedge. It depends what currency you're buying against. We don't buy anything in dollars, so the dollar can go up and down. If it were $1.40 to the pound as it was a while ago, then the PS3 would be a bargain compared to the US; if it's anything more than that, the UK price appears to be comparatively expensive. But we're dealing with euros and yen - it's about the relationship between those currencies." he said.
He also added: ""Of course, I would dearly love to have the PlayStation 3 retail price under £400, and at such time as we can afford to do so, we will."
Source:
GameSpot