All right I'm fairly confused now so Sony isn't making a crazy margin just stating they will make a profit and that turns up the taxes or something?
Well not even a profit, the $390 transfer price looks to me like a break even price. I'll explain everything in the list, give me a minute:
In USD:
Transfer price - $390 - This is the price Sony BR pays SCEI for finished units
Landing price - $468 - This is the cost of the unit once it is into an Sony BR warehouse
Distributor Margin - $117 - This is a mandatory BR government margin applied to all imported goods
Net sales - $585 - The amount Sony receive from each PS4 sale
ICMS - $222.43 - an importation tax applied to the $585 figure
PIS - $14.68 - a consumer tax applied to the $585 figure (Sony BR will claim this back)
COFINS - $67.62 - a consumer tax applied to the $585 figure (Sony BR will claim this back)
Gross - $889.73 - total cost to import one unit
IPI - $444.87 - a tax applied on gambling goods on the import price of $889.73
ICMS-ST/ - $223.12 - a tax on the $889.73 import price
Gross+ST - $1557.72 - final price of one PS4 unit to Sony BR
Dealer net cost - $1475.42 - Gross+ST less the consumer taxes PIS+COFINS
Retailer margin - $281.03 - 16% retail margin applied to the above figure
PIS - $31.94 - consumer tax applied to the sale price of $1756.46 (Dealer cost+retail margin)
COFINS - $147.10 - consumer tax applied to the sale price of $1756.46 (Dealer cost+retail margin)
Final retail price - $1935.49 - the four figures from above added up
Max suggested price - $1818.18 - MSRP
Adjustment - $117.31 - Sony discounting their margin to hit a strategic price point.
The retail and distributor profit margins total R$857, that's about $400 dollars in profit! The profit alone is enough to buy a PS4.
The distributor profit is refunded. The retailer profit does not go to Sony.
Thanks for that, makes a lot more sense to me now. I agree with the logic that Sony will look to build the PS4 userbase later on once costs come down due to the condition of the market as well.
I think the key for them will be retooling the PS3 assembly lines for PS4 assembly at some point in 2014/15.
LOL
Sorry, but to fix Brazil we would have to go back in time and have it be rediscovered and repopulated. The issue is not as simple as voting for different politicians.
D: