Sony clarifies Americans aren't 'cheap,' but U.S. labor is

[wraggster]

Via joystiq comes an update on the slur by Sony UK boss calling USA people Cheap:

Near the PS3 launch in Europe, Sony's UK Managing Director Ray Maguire was interviewed by GI.biz, and while discussing the cost of the PS3 in the UK said, "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."

Coincidentally, in the same interview Maguire also said, "Nowadays, with how the media works, not only does information fly around at the speed of light, so does mis-information. With blogs on the increase, people's thought processes are transferred from one place to another and picked up by people who might be lazy when it comes to finding out whether something is true or not."

Well, to prove him wrong, 1UP went and followed up with Sony America today. They explained what Maguire was trying to say is that the cost of living and labor are different in the two countries. The minimum wage in the UK is roughly $10/hr USD against the US's $5.15/hr. 1UP concludes, "Wouldn't that make us, essentially, 'cheaper?'" Well, no. By that thought process the U.S. is essentially poorer. Sony is doing the U.S. a favor by making the PS3 cheaper for the well-populated, but poor, country.

[Cap'n 1time]

And I can confirm that Sony are just greedy *******s. How about that?

[ketchup]

How come then that the average American has approx. 1.5x the average European's spending power then? I'm sure that Mr Gates isn't raising the average that much my himself, (and his like - There are plenty of super rich in Europe too).

This reminds my of the Jap motorbike issue. They all said that the bikes were more expensive in the UK compared to say France because of the strong pound. But the bikes are all made in Japan and cost so many Yen. Whether bought with UK Pounds or France Francs (at the time) they should still cost the same Yen. At the time you could buy a Franch bike and pay French taxes, import it to UK and register it and convert headlamps etc. and still save around £1000. Jap con artists at work.
Same with cars. 50% of Ford Europes profits come from UK but the sell far less than 50% of their European cars in the UK.

It's all Bull#"+t!!!!!!!!

[jdnation]

How come then that the average American has approx. 1.5x the average European's spending power then? I'm sure that Mr Gates isn't raising the average that much my himself, (and his like - There are plenty of super rich in Europe too).

This reminds my of the Jap motorbike issue. They all said that the bikes were more expensive in the UK compared to say France because of the strong pound. But the bikes are all made in Japan and cost so many Yen. Whether bought with UK Pounds or France Francs (at the time) they should still cost the same Yen. At the time you could buy a Franch bike and pay French taxes, import it to UK and register it and convert headlamps etc. and still save around £1000. Jap con artists at work.
Same with cars. 50% of Ford Europes profits come from UK but the sell far less than 50% of their European cars in the UK.

It's all Bull#"+t!!!!!!!!

There is also money involved in transporting and paying to sell and market your products in another country that will ajck up the price, so manufacturing costs aren't the only thing at play here...

[Tree]

i think comainy r taking the piss out of us!!!!! i think its the pikys that r so rich do it because they pay no fkin tax make it more dearer 4 us nd also they ave more money to spend so they raise prices up here ... no affcs if ur a piky or anything im just a bit piss on the taxs bull$#@! ... like i get along alrite wid SOME pikys der alrite people but like i said SOME