PlayStation 4 Comes With Australia Tax [CONFIRMED]

Alas! Our hopes of parity-based gaming have been thwarted: it looks like the PlayStation 4 comes with the dreaded Australia Tax!

A few minutes ago, we heard that the PS4 would set you back $US399. That's awesome value, and a price that we thought had Sony in pole position to win this year's E3. Not so when we saw the "confirmed price" EB Games were putting out earlier:

Here's the link to that sales page, which confirms that the price is $549.

UPDATE:

We just got word from Sony: the PS4 is $549 in Australia.

Here's the official release:

Good afternoon,
Sony Computer Entertainment Australia is pleased to confirm that the Australian pricing for the PlayStation 4 is RRP$549.00.
We will be providing you with further news and announcements following today’s E3 2103 conference today.

Poor form.


Comments

    Xbox One - $499 vs $599, Approx 20% Markup
    PS4 - $399 vs $549, Approx 38% Markup

    Maybe Sony should call whoever Microsoft are using for shipping.

      Your leaving the US sales tax out of those prices... the US prices are pre tax, ours are post tax...

        I am not leaving sales tax out of it. Sales tax doesn't explain why one markup is higher than the other because both of the US prices have the same tax (none).

        Tax (and currency conversion) only covers around 10%. Microsoft are adding an extra 10% on top (reasonable IMO), and Sony are adding an extra 28% on top (unreasonable IMO).

        My comment is a comparison of Sony vs Microsoft price markup rather than direct AU vs US pricing.

          You're comparing apples and oranges. MS and Sony are not the same company, selling the same product. Do you know what Sony's supply chain looks like? It's highly likely that like the PS3, they'll be selling the PS4 at a loss to gain a good install base. How dare they not lose more money, amirite?!

          Not to mention the cost of much broader consumer protections via statutory warranties etc, higher rents, higher retail wages, higher cost of transport (fuel etc), potentially falling value of the dollar, GST, import costs, and all this in a country with a much lower population density compared to the US, making it logistically more expensive overall. Also compare the average US wages with ours and it makes a lot more sense why stuff's cheaper over there.

          Let's not let all that get in the way of a solid sense of entitlement though.

          Rabble.

            Do you know what Sony's supply chain looks like?

            That was the lighthearted point I made in my original comment. "Maybe Sony should call whoever Microsoft are using for shipping."

            Not to mention the cost of much broader consumer protections via statutory warranties etc, higher rents, higher retail wages, higher cost of transport (fuel etc), potentially falling value of the dollar, GST, import costs, and all this in a country with a much lower population density compared to the US, making it logistically more expensive overall. Also compare the average US wages with ours and it makes a lot more sense why stuff's cheaper over there.

            This entire paragraph is pointless. All of those things apply equally to Microsoft and Sony. It doesn't explain the core of my original comment. Sony's $AU markup is substantially higher than the one Microsoft is applying.

            Let's not let all that get in the way of a solid sense of entitlement though.

            There are two companies selling devices in Australia, one is using a much higher markup than the other. I don't think questioning why is a sense of entitlement.

              Just to add a little bit more math to the discussion:

              US sale price without tax:
              Xbox: $499
              Ps4: $399

              Us sale price converted to AUD plus 10% GST: (USD to AUD @ $1.06)
              Xbox: $582
              Ps4: $466

              AUS sale price:
              Xbox: $599
              Ps4: $549

              Total price difference from US retail to AUS retail: "Australia Tax" (which I'm calling: do you know how much a shipping container really costs?)
              Xbox: $17 increase = 2.9% Markup
              Ps4: $83 increase = 17.8% Markup

              In my opinion, the Xbox pricing acuratly reflects the cost of sales in Australia, shipping, handling, localized marketing etc; whereas the Ps4 seems to be gouging a bit.

            Even if Sonys supply chain is so large it still does not explain Aust priced PS4 games selling for $118 Vs the states @ only $60. That's nearly 200% markup! our dollar is below there's but we make more money so its all ok? same argument with apple I store... The US companies Rip us Aussies off! The only one it hurts is the shops in Aus selling the over inflated games, cause I'm looking where I can save a dollar and with the console being region free all my games will come from over seas.

              Just buy games from UK on ebay, you get them for same price as US do, our prices here are way too rip off :(

        That's not the point of his comment. He's comparing Sony's price to MS, not US to Aus.

        Besides, given that the PS4 costs less than Xbox, GST is lower, therefore less excuse for Sony to have a greater markup.

          but you have to pay extra ($US59.. so probably $AUD99) for an eye.. whether or not you're into it.. its still something that comes bundled with the xbox

          and just to be clear.. im buying a ps4

          yeah i replied to the wrong person

        way to miss the point. PS4 is double the %age mark up that xbox is

        *you're

      Thought your calcs were wrong - turns out I'm wrong, nevermind :)

      Last edited 11/06/13 2:02 pm

        You my friend get an up vote for actually politely admitting a mistake during these flame and troll filled comment sections. Bravo.

          All good! I'm not getting the hate - personally I won't be buying the Xbox One, but I'm not going to get all riled up about it. I thought the math sounded wrong, had started going "well actually it's this much", then went waiiiit a second, nope, I'm wrong.

          No point in me being a dick about it - there's enough of that on Giz and Kotaku already ;P

      If only. Sony has been a long-standing bastion for regional price discrimination, the hike is of no surprise, and I predicted a 33% markup same as what Europe got stuck with. The UK gets it the worst, with a 40% markup before taxes.

        you could always grey import
        warranty on these things are always about a year, by which time they always die just after it runs out.

        or you know...just dont buy it at launch cause there arent that many good games at launch anyway

        or...stick to pc gaming

        tralalalalalalalala!!!

          Except warranty in Australia doesn't work that way anymore. I think electrical goods are generally about 3 years but one could easily argue 'reasonable expectation' would be the console generation life :)

      Think it's more about EB Games being scumbags. "Oh lets charge almost 100 bucks for every game".

        THIS! is why I never shoppe there

          Shoppe? What is this? 17th Century England?

        hahah $100? nah mate check the pre-order price $118

          you do realize they price match?

      The point is we get screwed over for electronics in Australia for no good reason .....our dollar is practically the same as the U.S dollar. American sales tax doesn't matter when the hardware is produced in china, taiwan or korea.

      Just buy your console on amazon for $399 USD In AUD that's around $424.42 then USD its around $15 for standard shipping so the console is roughly $440 AUD give or take since its region free it doesn't really matter where you buy it from as long as you get it for the cheapest price.

      and come September the Opposition will want to raise the GST lol

    annoying, yes, but still a hell of a lot cheaper then that PS2 I bought for $700 back in the day

      Pretty ridiculous considering the US launch price for the PS2 was $299 and the Australian dollar was at 0.60 USD at the time, which should have put it at around $500. It came out before GST was introduced here too.

      or the PS1 I bought on release for a freakin huge amount on the release day, only to have the price go down a week or two later....

    Microsoft have been doing a great job at international pricing lately, Sony continue to rip us though.

    I'll buy direct from the US. I bought my last two phones and my laptop from the US, and even with shipping I saved money.
    I use a shipping agent, PriceUSA.

      Doesn't work that well for consoles as they are region locked. Unless you want to purchase all of your games from the US, too.

        can you confirm that the PS4 is region locked. Last I heard that it will follow the PS3 route. all games are region free but DLC is tied to the region's PS Store so you need to make an account up.

          PS4 is confirmed to be REGION FREE.

            Exactly!

            I'm going to assume it's going to be like the PS3 - where you can have multiple profiles on the system for different PS Stores

        I'd actually consider that a selling point if it was region locked (which I haven't seen anything saying it is), it means you could buy your games for a max of $60US rather than a max of $120Aus..

        The real downside is warranty, the first PS3 I had had to be repaired under warranty, (and yet my early gen 360 is still alive, apparently I'm an anomaly :P) if it was imported that would potentially have cost an insane amount if it was even covered (We have way better guaranteed warranties in Aus than in the USA).

        I really hope it's not region locked or I may look at importing the damn thing, I haven't payed Australian prices for games in years screw 100% markup on everything >_

          If you buy it through Amazon you will get their excellent after sales service so it really comes down to postage back to the US. Also, games aside, I consider it a huge bonus to be able to buy my blu ray movies from the US so I don't have to put up with the massive rating warning printed on the cover, and also get to take advantage of the awesome BD deals Amazon does.

          If OZzGameShop started selling PS4's on release I'd buy from there. They have cheap game prices and free delivery from the UK.

            Except that you'll likely pay the UK price, which is more expensive than the local price.

        sony said its region free.. whatever that means games vs movies vs dlc

    Not sure why SCE Australia is "pleased" to confirm that.

    Cheaper is cheaper, I guess. Maybe Sony expect we can make up the difference by buying $50 worth of used PS4 games?

      Well it's cheaper than the $900ish that was originally being thrown around.

        $900 was an intentionally high preorder price though, to avoid retailers getting caught out having to honour lower quotes if Sony flipped its price lid like it did with the PS3. It was never going to cost $900.

    Considering the XO comes with the Kinect device I'd say the price argument swings in their favour,

    Still, better than the $1200 or what ever I paid for a launch PS3.. And dont forget - US price is pre State Tax.

      Oh shit. Its $399 in the US, I read it at $499.. wow.. what a kick to the balls

      It's around a sixty to seventy dollar difference.

      I would have probably launch day'd one of these if it was an even five, I'll probably wait.

    Guess importing one would be cheapest route.

      ...if you're prepared to purchase region-locked NTSC games & other discs, sure. Correct me if I'm wrong, but it is region-locked, right?

        I think you can buy most NTSC games for a lot cheaper than games are in Australia.

        Gotta remember that the games will be cheaper to import, so if the US dollar stays at the same place it is now in comparison to the Aussie dollar, buying games could be around $20 cheaper each.
        Minus shipping, you're still talking cheaper overall.

        Ps4 is region free

        It's not. From above:
        https://twitter.com/yosp/status/344357778288152576

    I would assume that USA would have sales TAX. So are we paying the US tax then our tax on top.

      You're paying for much broader consumer protections via statutory warranties etc, higher rents, higher retail wages, higher cost of transport (fuel etc), potentially falling value of the dollar, GST, import costs, and all this in a country with a much lower population density compared to the US, making it logistically more expensive overall.

      Compare their average wages with ours and it makes a lot more sense.

    Won't someone please think of the children. Really Luke, you are complaining over the price, i was jumping up and down in excitement. I paid over $800.00 for my PS3 on launch and now i can get the PS4 for $549.00 on launch, that's awesome.

    Last edited 11/06/13 2:35 pm

      The fact that it is cheaper than the PS3 was doesn't negate the fact that the price is still higher than it could be.

      Also, when the PS3 was released the Australian dollar was only getting $0.77, and it is currently getting $0.95

        I'm sure what you meant was 'should' be.

    Uh, we're still getting a better deal than UK and Europe... and everyone who wants to get an XBone :P

    Meh I'm happy with the price given what i paid for a ps3 but if games are region free again like the ps3, I will import it from the US. Should be able to get it shipped here for around $450USD.

    This price is completely acceptable to me....i find it odd that people are happy to pay $600+ for a smartphone or tablet, but expect a new console to be $400 or so.

      I don't have a problem with either price as well. But that isn't the issue being discussed. It is why Australia is incurring a 27% mark-up on the PS4.

        Yeah, it's a fair point considering its the cheaper console. I wonder if Sony just priced the console more competitively in the US to win over Xbox owners. In other words, we might not be paying more...America is just paying less..?

          I think the same strategy would apply to the market in Australia if that were the case.

          I just think it is just Sony putting the maximum price they think people will pay.

          Australia, as a market, doesn't really have much influence. Even if everyone in Australia bought the PS4 instead of the Xbone the impact on their global base would be negligible. (And I mean everyone in the market for a console... Not every single Australian)

          So they have made sure they are cheaper than the Xbone, but not by much.

            Hear, hear.

            There are 19.57 million people in New York state alone. Australia's total population is 22.32 million. Our influence is bugger all. Get used to it.

            Compare our discussions against the US Gizmodo site. You think they're bitching about the price.? Hell no. http://gizmodo.com/sonys-ps4-is-400-512483428

            Last edited 11/06/13 11:03 pm

    Does the Oz price include the PS-Eye?
    If not - The Oz price will prove much higher than the US XBox.

    It is actually only 5USD more expensive than what the British will be paying. 350 pounds is around 545 USD at the moment.

    America has 99c Whoppers and ours are $80.
    Don't worry about it, besides, Sony have earned it with what they've done.

    Alright, if you go to Amazon US ( http://www.amazon.com/PlayStation-4/dp/B00BGA9WK2/ref=sr_tr_sr_1?ie=UTF8&qid=1370927918&sr=8-1&keywords=PS4 ) you can see it is listed at $399, then if you look down the page under Product details it state 'Shipping: This item is also available for shipping to select countries outside the U.S.' . So from what it says here the PS4 can ship from the US to Australia, and here is the best bit, it only costs me 24.98 to ship from the US to Australia, that comes to $424.97 AUD. WOW I am speechless yet suspicious. Just get it form Amazon, the only way this plan would downfall is if the PS4 is region lock. I hope its not.

      Well if it is region locked you'll just have to save extra money by importing the games from the US as well...

        it's not.
        http://www.polygon.com/2013/6/11/4417948/ps4-region-free-report

        Not region locked has been confirmed so importing seems to be the way to go.

      I was considering importing one, but isn't there going to be a voltage issue being that U.S goes off 120v?

        PS3 is muti-voltage, so all you needed to do was get a different power cable or a plug adapter. There is an assumption that this will be the case with PS4, as it seems to be a trend the se days as it saves manufacturing costs.

    Pre-GST the mark up is approximately:

    Xbone - $46 - 11.5%
    PS4 - $100 - 27.1%

    So yes, the PS4 is significantly over-priced compared to the Xbone with relation to the Australia tax.

    I think that a 10% markup on US prices is reasonable if you accept that the cost of operating in the Australian market is higher than the US.

    I think 27.1% is a price gouge by SONY.

    The exchange rate could easily slip to 80c over then next few months. If this eventuates, these prices will seem quite reasonable, esp. when you include US sales taxes in the US price.

      Or it could just as easily return to its previous highs, and we'll all feel boned even harder.

      yes exactly!!!!!!!!! our exchange rate is notoriously unstable. It could easily drop to 60c within a few months if whispers regarding chinas slowing growth become reality. while they could keep prices in line with USA (who have the usd, THE GLOBAL AND MOST STABLE CURRENCY THAT DIDN'T FLUCTUATE MUCH EVEN DURING GFC), that'd mean them attracting the ire of the whole market by upping prices or it'd mean taking a huge hit themselves. what we have here is a middle ground. I hear us prices are before tax, to the before tax markup on Xbox is only 10pc! ps3 is 28pc so a bit further off, but who knows, maybe the Asians have inside info :p
      PLEASE CONSIDER THE POSSIBILITY OF FUTURE EXCHANGE RATE DEPRECIATIONS IF YOU BUY A REGION LOCKED CONSOLE FROM OVERSEAS! thanks

    actually, if you compare all of the prices in Yen, Australian pricing is the second cheapest.

      They haven't announced the price in yen yet, as far as I can see. 40,000 is the rumour, which puts the US price as the standard.

    Still better than the $1000 price tag that came with the PS3. I'm not complaining at all. I can now buy both systems for around the same price as the PS3 at release.

    I don't get it.. People complain about the price yet will quite happily shell out $539 for a 16GB iPad?

    From what I understand, Sony's prices are run on Europe, not US comparison.

    So I think the exchange is we come out better.

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