AfterDawn: News

Maguire explains UK PS3 price

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

Written by: James Delahunty @ 4 Feb 2007 9:23

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• 19 comments

• Altercuno

  Ripping us off then has nothing to do with it...its all down to the exchange rate and the fact that people who work in shops are paid wages.
  
  I bet if they don't sell the price will soon come down.

  4.2.2007 10:24 #1

• ZippyDSM

  you cant afford not to sell them for under 420......killing all production of the low end and foceng on lowering the high end's price should level out your losses..but not you are betting it all on PR.....

  4.2.2007 13:23 #2

• hughjars

  It's just the usual, liars lying to us.
  Quote:Sony: it's not our fault PS3 is expensiveBy Bobbie Johnson / Gaming 12:01pm
  
  In this week's Technology supplement, Steve Boxer takes a look at why the PlayStation 3 is so expensive for British customers - and asks Sony Computer Entertainment UK boss Ray Maguire what the reasons are. Maguire flips between the usual suspects; VAT, currency valuation and
  
  "There's a compulsion within the media to look at everything as a snapshot, and do a calculation, normally based on just the RRP in somewhere like the US and just the RRP in the UK. What you should do with the RRP from the US is add sales tax."
  
  But as Boxer points out, UK VAT would take the RRP to just £352 (*compared to the £425 they want to charge).
  
  So instead, Maguire says that it's actually too easy to compare RRPs without taking into account corporate currency management.
  
  "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."
  
  From the figures I'm looking at, the last time the dollar was $1.40 to the pound was six years ago (less than a year after PS2 was released).
  
  Maguire also blames high living costs and staff expenses in the UK (as opposed to, say, Japan?!).
  
  Update: Over on the Gamesblog, commenter Graham says "The GBPUSD exchnge rate ... has only been below this level on 15 days in the last 16 years."
  
  Anyway, here's the point: the PS3 is hugely expensive, and more so in the UK than anywhere else it's is being released.
  Why can't Sony - and all the other companies who cash in on "rip-off Britain" - admit that it's simply the price that the company believes we will pay for the machine?
  
  http://blogs.guardian.co.uk/technology/archives/2007/02/01/sony_its_not_our_fault_ps3_is_expensive.html
  
  - Like I said, liars lying to us.
  
  It's nothing to do with taxes, exchange rates or the cost of living.
  
  Rip-off artists at work, nothing less.

  4.2.2007 13:44 #3

• raytunny

  If people are daft enough to pay it they deserve to be ripped off.
  
  It seems they have calculated that there are enough people that will buy it, for Sony to make a killing, at even this grossly extortionate price. I'll wait until some fall off a lorry, which they always do in the 'pool;-)

  4.2.2007 14:31 #4

• hade

  you guys do realize that this is and has been normal practice for these companies. the price in the uk for the xbox 360 compared to the us price is also more expensive. sorry but regardless of what company you like neither is any better than the next...paying more wouldn't sit well with me either, but i would've come to expect this by now. nothing new

  4.2.2007 17:48 #5

• ZippyDSM

  hade
  odd a 17% markup is 463 eu off 599 us 0-o
  
  BUt a price of 430 US is more reasonable and thats 332 EU
  pre vat.
  

  4.2.2007 18:03 #6

• duckNrun

  Fact is it's all about the suply and demand curve.
  
  EVERY company will charge the most it can get away with. When the sales dry up at that price they either have to quit marketing the product or lower the price to once again grab the next set of consumers who will buy at the lower (but still inflated) price 'drop'.
  
  By the time you see the PS3 reach a 'reasonable' price there will be no people left who will be willing or able to purchase the blasted thing at these rip off prices.
  
  Lesson to be learned? Don't get your knickers in a twist and just sit back and wait for the price drop. (Or go to the 'pool and find that lorry! lol)
  
  

  4.2.2007 20:19 #7

• ZippyDSM

  duckNrun
  I dunno I like systems to be udner 200,I waited till I coudl get a used Xbox and 6 games for 120...wait.that was last year.... MA HAHAAHAHAHAHAH >>
  
  but really the PS3 is OTT and not worth it not at that price,the 360 is a bit better but not by much.

  5.2.2007 01:46 #8

• hughjars

  S'funny cos on another thread the report was Maguire spinning how he claimed to think the reaction to the pricing and launch etc had been so positive, now he's facing questions to explain the "anger" over Sony UK's pricing policies.

  5.2.2007 01:48 #9

• shauntay

  lol i wudnt pay anywere near that pricde, any1 who does is just a fool, who the fuck do sony think they are, tellin ppl to pay different prices.
  there a bunch of overpaid underworked assholes.
  
  RIP SONY as use are killing yourselves

  5.2.2007 02:28 #10

• tam2oo5

  Import them from the us guys, save y'all some cash

  5.2.2007 04:40 #11

• Altercuno

  Japans better same region code, except people importing them early are charging more than the retail price when released.

  5.2.2007 07:15 #12

• solarf

  thats outrages I wouldn't pay that much money even if i had it,which I don't.

  5.2.2007 08:25 #13

• neo1000

  So i guess here in mexico it`ll cost like $200...yeah right.

  5.2.2007 09:57 #14

• humzaiq

  i got hit by lightning for spamming this fine site!!! edited by ddp

  5.2.2007 11:48 #15

• hughjars

  Mod alert!
  
  There's a spamming tosser here who needs booting asap.

  5.2.2007 11:59 #16

• tam2oo5

  Yeah i know, but when its released in the uk we should see a great deflation in prices all over the net for importing.
  

  Check out Http://www.techno-source.co.uk

  5.2.2007 13:07 #17

• rookie_m

  Hey
  
  I live in Sweden and they are charging 6490 kroner for PS3 which is 941 US dollars. Granted that we have a 25% tax, so that means that the base price is 4867 kroners which is 706 US dollars. This is a total rip-off! I mean yes we pay more taxes for workers, etc. but what a lot of people fail to realize is "buying power." For example, I can go to a middle priced grocery store and fill up the cart for approximately 1500 krs or 200 US dollars. When I lived in the US, my money did not go as far. So the point is, as someone mentioned before, they are just ripping people off and seeing how much people are willing to pay.

  10.4.2007 14:04 #18

• raytunny

  Well, the only way I'll be buying one is in their bankruptcy sale 8-)
  Certainly not before.

  10.4.2007 16:09 #19