by December 19, 2013 0 comments

Sony has made the right move by announcing the PlayStation 4 gaming console for consumers in India well before Microsoft decides to bring its Xbox One console to India. But the most glaring issue for the company might be due to its own strategy.

PS4 that is powered by an 8 GB RAM and 500 GB storage space costs $399 in the US which translates into Rs 24,700 approx but the Japanese major has priced the PS4 in India at Rs 39,990 which is a steep price for the latest PS variant. Social forums, Twitter have been barged with messages of outcry and disappointment among numerous gaming fanatics who had been anxiously waiting for the console’s launch in the country.

Responding back to these queries, Sony India has reportedly clarified to the consumers via media that converting US price to India’s pricing is not the only methodology the companies need to apply when bringing a global product to India as there are various taxes that are levied on them. Apparently, Sony cannot sell the PS4 in India at Indian conversion rate of $399 (US price) as there we have the additional burden of levying import taxes and VAT. 

“I think we’ve managed to keep the right price within the current tax structure. We can’t make the direct conversion from the US price into the Indian price. You have to realise that those conversions are happening sans any tax structures. We have 36 to 37 percent taxes to pay between our import taxes and VAT.” Atindriya Bose, head PlayStation India said.

Even if taxes are the case the overall cost should not exceed Rs 34,000 all inclusive, so Sony clearly has other reasons to jack up the console’s prices but with Xbox One expected to be priced higher than this, there may be case for Sony to keep things in check.

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