While gamers in the United States will be able to purchase the Sony PlayStation 4 (PS4) for $399 USD, the story is much different for gamers in Brazil.

On Thursday, Oct. 17, Sony (NYSE:SNE) announced that PlayStation 4 will launch in Brazil on Nov. 29, but the price will be a whopping 3999 Brazilian Reals. Sony’s competition, the Microsoft (NASDAQ:MSFT) Xbox One, will retail for $R 2199 and is scheduled for launch in Brazil on Nov. 22.

To put it in perspective, if the PS4 and Xbox One were to be sold in the United States at that price level, they would cost $1,833.60 and $1008.48, respectively.

The pricing situation in the United States is much different, with the PS4 costing $100 less than the Xbox One, which will retail for $499.

The games for the PS4 are expected to cost $R 179 ($82 USD).

Why the big difference between the United States and Brazil? Taxes in Brazil may be partly to blame.

In Brazil, video games and video game consoles are taxed heavily at 72 percent, even higher than the firearms tax (71 percent), according to Folha de Sao Paulo.

However, the high taxes in Brazil do not explain the huge price difference between the PS4 and the Xbox One, which costs about $R 1800 less than the PlayStation 4.

Reactions to the announcement have been filled with outrage, with many Internet commenters saying they'll import the PlayStation 4 from another country rather than buying one within Brazil’s borders.


A tweet by Pontofrio.com illustrated how absurd the price looks to Brazilians by adding items to a shopping cart. For $R 4000, a Brazilian can get a tablet, smartphone, laptop, television, oven, refrigerator and even a small Christmas tree.



Let us know what you think about the Sony Brazil PlayStation 4 announcement in the comments below.