The Great PlayStation 3 Swindle

It’s amazing just how badly Sony is handling the launch of the PlayStation 3. Every step of the way it seems to be getting things wrong. In the latest bungle Sony seems ignorant of the "Internet" and "globalization".

The great PlayStation 3 swindle

Never mind the PlayStation 3, there’s always the Wii

We all know about the well publicized delays, and problems with logistics and manufacturing, but now, as it finally decides to launch the PlayStation 3 in the "rest of the world", we find that the rest of the world has to pay a premium for not being the US or Japan.

Here’s a list of the suggested retail prices for the "high-end" 60GB Sony PlayStation around the world converted into US dollars:

* Japan – US$495 (¥59,980)

* USA – US$599

* Australia -US$772 ($999)

* New Zealand – US$835 (NZ$ 1199)

* Europe – US$775 (599 Euros)

* UK – US$835 (425 Pounds)

Given that the PlayStation 3 is manufactured in Taiwan, not Japan, and even taking into account the different tax systems in the countries listed, how can Sony charge so much more for the PlayStation 3 in Australia, New Zealand and Europe, than it does in Japan or US?

Hasn’t Sony heard of Nintendo or Microsoft? Doesn’t it know that both the Wii and Xbox 360 have been outstanding successes, and that they are both cheaper than the PlayStation 3?

Perhaps in the bad old days before we had the free flow of information (ie the Internet) companies could get away with large price disparities between different markets. But this isn’t 1981.

While Sony might be able to justify some premium to cover shipping, the special distribution challenges of Australia/New Zealand and Europe, and the smaller market sizes of each country, an extra US$200 is just going too far.

I suspect that what’s actually happening is that Sony was so desperate to do well in the US and Japan, that it has actually discounted the console in those markets.

Sadly, that isn’t going to sit well with the "rest of the world". I know that if I was a PlayStation fan living in Australia, New Zealand or Europe, I would feel quite outraged at Sony’s pricing strategy.

And sadly, for Sony, with Nintendo’s Wii doing so well, it can’t afford to loose any friends at the moment.