Xbox360 cheaper in SA than USA
Recently, an article was written comparing the PS3, Xbox 360 and Wii in terms of pricing. It was shown that while the Xbox 360 has become far more affordable over the past year, the Wii’s price has increased by about R700.
This prompted a look into local console prices in comparison to prices in North America.
Results
Xbox arcade $200 (R2090) local pricing (R1800) difference –R290 (13% cheaper locally)
Pro 60GB $300 (R3130) local (R2700) difference – R430 (13% cheaper locally)
Elite 120GB $400 (R4180) local (R3500) difference – R680 (16% cheaper locally)
PS3 80GB $400 (R4180) local (R5000) difference R820 (19% more expensive locally)
PS3 160 GB $500 (R5220) local (R5500) difference R280 (5% more expensive locally)
Wii sports $250 (R2610) local (R3400) difference R790 (30% more expensive locally)
The data shows that the Xbox 360 is actually cheaper locally than in the USA.
Local Xbox 360 product manager, John Press commented: “It has always been part of the local strategy to maintain affordability wherever possible.”
“Typically duties and import costs do prevent local suppliers from matching pricing overseas but we are extremely happy that we are in a position to be so competitive despite the tough economic climate and the pressures the volatile exchange rate has brought with it. This is a result of some solid forward planning and the results are most encouraging.”
Microsoft operates in SA as a subsidiary of Microsoft USA. In theory this means that they are able to control pricing in specific locations in order to remain competitive relative to different world markets. In terms of unit costs, Microsoft just about breaks even on every Xbox 360 sold in America.
Therefore, as the exchange rate stands now, it follows that Microsoft must be making a loss on every console sold locally, unless they are sitting on a massive backlog of units brought over to SA on the old exchange rate.
The PS3 carries a reasonable price inflation when we take into account SARS import taxes and shipping fees.
Unlike Microsoft, the Nintendo Wii is handled locally by Core Group. They act as a third party distributer/brand manager.
MyBroadband is currently in communication with Core Group and a follow up article explaining the Wii’s relatively high price is in progress.
XBox 360 local pricing discussion
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