Europeans getting screwed by xBoxOne pricing

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dhenniga

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#1  Edited By dhenniga

This is just a simple question. Why the hell is the xBoxOne over $160 more expensive in Europe (nearly $170 in Britain)?

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DeeGee

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It's the final nail in the coffin for me. There's no way I'd even consider buying one at that price.

Oh next gen, you had so much potential.

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deadmanforking

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It's our thing. Can't wait for PS4 to be $489/£419

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BlackLagoon

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#4  Edited By BlackLagoon

You have to remember that European prices generally have VAT included, so depending on your country some or all of it is going to the government.

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EXTomar

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#5  Edited By EXTomar

The answer is "probably" but that is tragically and unfortunately not new.

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Petiew

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#6  Edited By Petiew

We always get screwed over by prices. It was the same with the WiiU and it'll be the same with the PS4.

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FourWude

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#7  Edited By FourWude

Because America is god's chosen nation and it's been chosen as the land of the Xbox One aka The Chosen One. And whoever openeth himself to the One shall taste of the fruit of integrated connectivity with the holy clouds and no lagginess shall he experience. Connected to the lord shall he be 24/7. And the Kinected eye of the lord shall shine upon him and all that he doeth.

It's in there in Galatians or something or other.

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Vuud

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in general aren't most things more expensive in Europe?

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Alpha1

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#9  Edited By Alpha1

TAX!!

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Skytylz

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#10  Edited By Skytylz

It has to be something to do with taxes right?

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joshwent

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@vuud said:

in general aren't most things more expensive in Europe?

The places I've been, beer's cheaper than water. So maybe they can at least get nice and drunk while they pay insane prices for games.

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positrark

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#12  Edited By positrark

People saying Europeans should be angry for getting screwed by pricing clearly aren't from Europe. I'm from Norway. 1 USD is worth approximately 6 NOK (Norwegian currency), but we're still used to multiply the US price by 10 to get the amount we will pay in NOK. The PS3 was the equivalent of 1000 USD when it came out here.

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MattyFTM

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#13  Edited By MattyFTM  Moderator

Tax is the big one. In the UK, once you've added tax, the price difference is less than £40. About the price of one game. It's not as massive as it first seems. Other costs are also higher. Low paid workers (the people working in warehouses, delivery, stores - all of which are involved in getting the console to you) get paid higher than the US, because we have a half decent minimum wage. And there's the insane amounts of tax on petrol for deliveries. And higher energy costs in general. Someones got to keep the lights on at the store/warehouse. And the cost of shipping the consoles to Europe is probably higher.

People fail to understand that it's not as simple as just converting the dollar value into pounds/euro's and slapping a price tag on it. There are a million variable costs that are different in europe than in the US. Microsoft are probably making about the same amount of profit per unit sold in Europe as they are in the US. It might be slightly more, but it isn't even close to a $160 difference like the price difference makes it seem. It's certainly not being "screwed". At worst you're being charged slightly over the odds. Only slightly.

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Rhaknar

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500euros these days with how the economics is on most european countries is ridiculous.

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EXTomar

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#15  Edited By EXTomar

Those are factors but I believe it is more due to market mathematics. Microsoft wants to keep the price lower in the place it has more potential customers. To offset this cost it has raise the price in another market that isn't as lucrative.

So thanks Europe for helping to put more XBox Ones into American living rooms. :)

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viking_funeral

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@mattyftm said:

People fail to understand that it's not as simple as just converting the dollar value into pounds/euro's.

As someone who has lived on both sides of the Atlantic more times than I can count (and will likely be returning soon)... this is the hardest thing to explain to people. Economies are like languages. You can't just replace one value with another and expect everything to translate perfectly.

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thatdutchguy

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Tax is much higher than in the US... i think that's the reason

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dhenniga

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#18  Edited By dhenniga

What is the tax called? Is it for shipping the console from America because its all assembled in southern China right? It might be an import tax but it would probably work out at about the same price if I purchased it from an American store and shipped it to Europe myself. Anyway, it's too expensive for me and lump on a couple of games with that and I'm eating beans for a few months.

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Fierrze

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#19  Edited By Fierrze

@vuud: Yup, they sure are. I remember PS3 launching with a 600€ price tag...

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#20  Edited By positrark
@joshwent said:

The places I've been, beer's cheaper than water. So maybe they can at least get nice and drunk while they pay insane prices for games.

Unfortunately not generally true. In certain countries yes, but e.g. Norway has really expensive beer prices, even compared to the US.

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#22  Edited By Mushir

Another duder from Norway and considering that the XONE will cost $499, we can assume that it will cost around 4990 NOK here, which results to almost $900!!!!!!

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Vuud

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#24  Edited By Vuud

So how much will an xbox live sub cost on top of that? And I'm predicting that in the near future video games could be as high as 75USD a pop -- and that's pre sales tax and/or VAT.

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Hate to break it to you, but I think we get screwed over price at *every* console launch. Wasn't like this one was going to be different.

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#26  Edited By MattyFTM  Moderator
@dhenniga said:

What is the tax called? Is it for shipping the console from America because its all assembled in southern China right? It might be an import tax but it would probably work out at about the same price if I purchased it from an American store and shipped it to Europe myself. Anyway, it's too expensive for me and lump on a couple of games with that and I'm eating beans for a few months.

VAT. Value Added Tax. Sales tax, in other words. It gets charged on pretty much anything that is sold here. It varies from country to country. In the UK it's 20%. Which is a significant amount.

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Fallen189

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@mattyftm said:

Tax is the big one. In the UK, once you've added tax, the price difference is less than £40. About the price of one game. It's not as massive as it first seems. Other costs are also higher. Low paid workers (the people working in warehouses, delivery, stores - all of which are involved in getting the console to you) get paid higher than the US, because we have a half decent minimum wage. And there's the insane amounts of tax on petrol for deliveries. And higher energy costs in general. Someones got to keep the lights on at the store/warehouse. And the cost of shipping the consoles to Europe is probably higher.

People fail to understand that it's not as simple as just converting the dollar value into pounds/euro's and slapping a price tag on it. There are a million variable costs that are different in europe than in the US. Microsoft are probably making about the same amount of profit per unit sold in Europe as they are in the US. It might be slightly more, but it isn't even close to a $160 difference like the price difference makes it seem. It's certainly not being "screwed". At worst you're being charged slightly over the odds. Only slightly.

Bear in mind all the "media functionality" which is so focused for the USA

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Winternet

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#28  Edited By Winternet

You could have just stopped at "Europeans getting screwed".

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maddman60620

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#29  Edited By maddman60620

you can alway fly to the USA buy one for cheap, $1 US is worth only 1/2 round the world... we need tourist over here to help get are e-con going again, Microsoft is just doing it part lol

Visit the US take in the sights and buy a Xbox One for half the price of your home currency...... its funny because its true 8...(

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positrark

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@mushir: Yeah, some online Norwegian retailers are taking preorders at an estimated price of over 1000 $ (5999 NOK) before the announcement, so I expect the final launch price to be about 870 $ (4999 NOK).

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#31  Edited By thatdutchguy

everything is cheaper in the US.

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reisz

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#32  Edited By reisz

Just wait for Australian pricing to be announced, $700.00 AUD anyone? Anyone?

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Sploder

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I dunno, I thought 430 quid was a decent price point. I was expecting 500.

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dhenniga

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#34  Edited By dhenniga

Okay, thanks for clearing that up for me. I'm glad Microsoft are going to be supporting the 360 in the future so I'll stick with that for now. :)

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#35  Edited By RVonE

Like others in this thread have said, tax isn't the only factor differentiating the price.

Let's see: USD 499 converted to EUR with the most recent exchange rate according to xe.com comes down to EUR 376 and change. Let's be favorable to Microsoft and round that up to EUR 380. Add 21% in taxes (which is the VAT in the Netherlands, where I live) makes it roughly EUR 460 which is still EUR 40 (~ USD 50) shy of the EUR 499 that's been announced.

So, if it's not taxes that explains the entire differential then there must be another factor at play--which does not preclude the idea that we're just getting fucked.

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#36  Edited By Cold_Wolven

@reisz said:

Just wait for Australian pricing to be announced, $700.00 AUD anyone? Anyone?

That seems to be conversion from pound to AUD...sigh.

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Teoball

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I'm crazy and will buy all consoles at launch anyway, so price doesn't really matter to me. I bought a PS3 and a couple of games at launch for 7000Kr ( that's 1250$)

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#38 Mento  Moderator

The price difference isn't the sticking point for Europeans. We're used to it. It's more that it costs that much to begin with. Curious to see how much the PS4 will be (the Sony console was the more expensive one last time, infamously so if I recall, but the new one doesn't have a dumb intrusive motion sensor built into it).

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#39  Edited By RVonE

@mento said:

The price difference isn't the sticking point for Europeans. We're used to it. It's more that it costs that much to begin with. Curious to see how much the PS4 will be (the Sony console was the more expensive one last time, infamously so if I recall, but the new one doesn't have a dumb intrusive motion sensor built into it).

This is the interesting part about the PS4 to me. If it turns out to be true that the Playstation Eye, or whatever it's called, is sold separately then--like with the harddrive-less 360--most games might not require that thing to be present. At the very least it would mean that the PS4 can operate without more clutter around my TV.

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@mattyftm: Yeah its 20%....because we are still in a recession our second one and this was one of the early moves to try and get us out of it.....I aint happy with our current political party in power. but then...I am scottish.

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FriskyHeadCrab

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#41  Edited By FriskyHeadCrab

Well, just be secure in the knowledge that while you have to pay more for your xbox, your healthcare is better/cheaper/more widely available, and your internet way faster and cheaper.

$150 off an xbox? Totally worth getting screwed by verizon and phizer. Go Team America.