[felipe]

Brazilian here: A local tax expert pointed out that Sony is adding a huge profit margin on top of the taxes [1]. Sony has disclosed the tax figures to the media but not their profit margin, and trying to blame it only on taxes because they know the Brazilian consumer will believe.

Some suspect that Sony is importing at an even higher price than the retail US price. No one knows for sure, but clever US sellers were buying PS4 at full retail price, shipping to Brazil, paying all taxes, and still they were able to sell cheaper than the retail price of the Brazilian PS4.

If Sony produced PS4 in Brazil they would pay 6% taxes instead of the 40% protection tariff. Microsoft (actually Foxconn) is doing exactly that in Brazil and that's why the XBox One is actually cheaper than a PS4.

Sony simply did not want to incur the labor costs and risks associated with investing in the local tech industry. Nothing wrong with that (it's their decision), but they are not being truthful to the local consumer.

[1] (in portuguese) http://info.abril.com.br/games/noticias/2013/10/sony-divulga...

[easytiger]

> Sony simply did not want to incur the labor costs and risks associated with investing in the local tech industry. Nothing wrong with that (it's their decision), but they are not being truthful to the local consumer.

You can't expect them to set up a factory in every single geopolitical location that imposes these rules.