"Some UK residents have felt angered by Sony's pricing scheme in the PAL territories. At £425 (~$820 US), European users are paying quite a lot to get a chance to PLAY B3YOND. One reason for the price hike? The government-imposed VAT, which makes up for up to 20% of the cost. "The money doesn't go to Sony," Harrison reminded.
While the availability of a 20GB model would have certainly alleviated some financial pressures on European buyers, it simply wasn't possible: retailers said they only wanted 60GB versions."