Cost is definitely prohibitive in SA. I bought my Xbox One for R4500 in SA last year, the 500gb model with just Gears of War included. In September 2017 I went to Germany a few days for work and they were selling the Xbox One S 1TB with any two games of your choice for €250. Even with the exchange rate it still worked out under R4000. I wanted to get me one but I was worried customs would nail me on the way back into SA.
Don't even get me started on Nintendo products. How can they justify R6000 for a Nintendo Switch? It kinda works out if you directly convert using the exchange rate, but that doesn't take buying power into account at all. R6000 does not have the same buying power as €300 does in the EU. If you take actual buying power into account we should not be paying more than R4000 for a Switch. When you convert from dollar it is even worse. Then we're overpaying more than R2000.
Keep in mind what also adds to cost for us here in SA is physically getting these things here. For EUR market they have multiple flight options and far further to traverse - SAA charges premium for airfreight cargo space, and have limited flights inbound from UK (where most of our gaming stock comes from), pushing that cost up even further. Sea freight, while much cheaper, is usually not an option, because then you are missing street dates. Add to that the ridiculous landside charges associated here with clearing, cargo duties, customs checks, and then local labour and distribution charges, you start to get an idea of why costs in SA are not "in line". And US isn't PAL, we get all of our hardware and software from EUR, so a $ conversion will never hold.
Re Nintendo, it's distributed by the same company who handles Apple here, so you shouldn't expect anything less than premium price points. And sadly, Ninty as a company worldwide have just never actually been price competitive. Nor do they do what other console manufacturers do and drop prices a few years after launch. That works fine for them internationally where Ninty have a fairly large loyal following, but here it hurts the brand.