In an interview with Martin Matt, from the popular GameIndustry.biz site, Sony UK managing director Ray Maguire calls America "a land of cheap people", while the UK is “a little island where rent and rates are at an absolute premium”.
When asked about the high price of the PS3 in PAL areas, especially in the UK (where Sony’s console is currently being sold for GBP 425- US $840- more expensive than anywhere in Europe) this is what Ray Maguire had to say:
“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.
But we have to remember this is no different to selling a cup of Starbucks coffee or a McDonald's hamburger. This is the cost of living in the UK. It just becomes another barrier for us to get more product into the marketplace because the price needs to be set higher to get from our factory to the consumer.”