Sony will accelerate local production of PlayStation 4 to reduce price

After causing an uproar with the release of the PlayStation 4 price in Brazil, Sony said today it wants to accelerate the start of local production of the console to be able to download the value.
In an interview with Value, Mark Stanley, Vice President of Sony Computer Entertainment for Latin America, said the company considers the price of $ 3,999 unaffordable for consumers, but that this was the possible value for the moment because of the high tax burden on the Islands that reach the country via import.
Thus, the only alternative to have a better price is the local manufacturing. "Increase the level of subsidy would not be a sustainable option in the long run," he said. Stanley didn't need how long it can take for that production is initiated, nor as the price of the console can fall with an investment of this type.
In may, when he announced the start of production of the PlayStation 3, Sony said that the price of the console would have a fall of 35%. According to Stanley, it's hard to say if the porches for the new videogame will be the same. "It depends on negotiations with suppliers. If we can find more components here in Brazil will be a value. If we have to import a lot, will be another, "he said. Over the long term for local production, he said that will only be possible to have a clearer idea after the worldwide release of the PlayStation 4, on 15 November.
Currently, only a Sony factory in China produces the new console. The idea is that, after the launch phase, are studies to assemble a production line in Brazil. According to him, the fact that Sony already produce the PlayStation 3:0 pm Manaus will help speed up the process. The Brazil is one of three countries where the PlayStation 3 is manufactured. The others are China and Japan.
The price of $ 3,999 for the PlayStation 4, announced on Thursday, caused uproar in social networks over the weekend. Netizens unhappy made criticism and jokes about Sony's strategy. Yesterday, Stanley came to make a post on the official blog of the PlaySation to try to calm consumers. "Thanks to all of you who shared their comments on the high price of PS4 in Brazil. We are also frustrated by the price of $ 4,000, and soon we will be able to show the reasons. Thank you for your passion and stay tuned for more information, "wrote the Executive.
Taxation
According to the worksheets from Sony, 63% of the price of the new console ($ 2,524) corresponds to taxes. The remainder of the value is made up of the ex-works price of the product out of Brazil (R $ 858) and the margin of retailers ($ 618). According to the company, the final price would have been higher if the manufacturer had not included a discount of $ 135 in value, the equivalent of margin that she would have for the distribution of the console in the country ($ 257). "Unfortunately, we're not making as much money as people think. In fact, we're even losing, "he said.
Stanley criticizes some distortions in taxation to video games and other electronic products that reach the Brazil imported. According to the Executive, the tax on industrialized products (IPI), for example, reaches a percentage of 50%, same level of tobacco and far superior to products such as the jet-skis (10%). For the Executive, the controversy over the price of the PlayStation 4 can help in the resumption of discussions on the taxes levied in the country. "We've tried that in the past such as Sony and how industry, but now, who knows, we might get back to the topic," he said.
Competition
The price of the PlayStation 4 in Brazil leaves Sony in a difficult position to compete with its main rival, the Xbox One, from Microsoft. The new owner of the console Windows is already in pre-sale phase costing r $ 2.2 billion in Brazil. "Retailers are already saying they will only buy the Xbox," said one industry executive who did not want to have his name revealed.
The assessment of experts is that Microsoft just get this price for local manufacturing of the new console. Today already works in Brazil an assembly line of Xbox 360. Wanted, a spokesperson for Microsoft said the company will talk about his plans for the Xbox One during press conference in Brazil Game Show (BGS), on Friday.
According to Stanley, the Sony is poised to sell a few units of the PlayStation 4 while the price is at the current level. "I didn't want it to be sold or a unit at that price. So let's work to get local manufacturing as soon as possible, "said the Executive.