US = Land of Cheap People?

stupidboy.pngWhen it comes to criticism in this day and age, the United States has been known to receive so much criticism from various people in various parts of the world. Sometimes the criticism is fallacious, sometimes its humorous, and sometimes its something that doesn’t even deserve attention. In the case of Ray Maguire, though, the U.S. is…well…pretty stupid…at least those who complain about the price of the Playstation 3.

In an interesting interview with Sony UK Managing Director Ray Maguire, GameIndustry.biz asked Maguire why the Playstation 3 is more expensive in the UK than it is in the rest of Europe to which Maguire, speaking in economic rhetoric and analogies, responded

If you take the product at the factory gates there are slight variations to price if you’re putting out a single sku product, but it’s very, very small. But then the differences start to accumulate. If you’ve got different shipping costs and import duties that makes variation in price. And that’s just getting it into a country. Then you have a look at the economic and financial situation in each and every territory. That’s where the differences start to vary massively.

If you take what’s considered to be the most expensive and the least expensive – consider the US with its massive land and cheap people. Then you look at the UK – a little island where rent and rates are at an absolute premium, and the cost of people is a lot more. The cost of retail is vastly more in the UK than it is in the US and that’s before you even stop to consider the US doesn’t have VAT at RRP, they put a small amount on afterwards. Whereas, we get stung by 17.5 per cent. And pity the poor Irish and places like Sweden.

It’s nice how Maguire compares the cost of the Playstation 3 in the UK to the cost of living in the UK. Whether or not the man is being cocky or serious is unknown to me; but from what I gather, which is obvious to a lot of people, Europe seems to be the most important market for the Playstation 3. Read the interview and see what else Maguire has to say. It’s a noteworthy read, but I question Maguire’s integrity the most.

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~ by Rolando Ochoa on March 26, 2007.

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