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Sony's Win a Major Blow for Importers 200

Joan Cross writes "Sony won a battle in the UK Courts over the importing to Europe of Playstation Portables by Lik Sang. They say that 'Ultimately, we're trying to protect consumers from being sold hardware that does not conform to strict EU or UK consumer safety standards, due to voltage supply differences et cetera'. Of course, the PSP comes supplied with a 100-240v adapter which is safe worldwide. Lik Sang has posted their reaction to the court decision. Could be bad news for those wanting PS3 Consoles on import."
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Sony's Win a Major Blow for Importers

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  • Re:bah, (Score:4, Interesting)

    by RyuuzakiTetsuya ( 195424 ) <taiki@c o x .net> on Saturday October 21, 2006 @04:50PM (#16530941)
    Actually, there's no confirmation whether or not Sony's losing thier pants on the ps3...

    But still, Sony Computer Ent. Europe does lose money, even if Sony Computer Ent Japan doesn't. Mostly because they track their
    sales and revunue seperately from each other.

    Oh, I agree, it's stupid, but i'm just pointing out the logic of why it's both true and it's stupid.
  • by jandrese ( 485 ) <kensama@vt.edu> on Saturday October 21, 2006 @04:56PM (#16530983) Homepage Journal
    Heck, the fact that it won't play European region Blu-Ray Movies is one reason people buy second consoles. It's not uncommon at all to buy a second player if you import a lot of movies from another country, especially if you feel legally queasy about modding your DVD player to ignore regions.
  • Re:Globalization (Score:2, Interesting)

    by Kattspya ( 994189 ) on Saturday October 21, 2006 @04:58PM (#16531003)
    Are you trying to say that it would be a good thing if the weaknesses of your messed up legal system isn't brought to light? We have a 25% VAT on non-food goods (food is only 12%) and the best way to see the actual difference it makes is by seeing products from other countries. It usually pisses me off when I see how cheap everything is but then I remember the VAT and get even more pissed off. High blood pressure is a side effect of being a libertarian in Sweden.
  • by mutube ( 981006 ) on Saturday October 21, 2006 @05:20PM (#16531169) Homepage
    This is nothing new. It's what happens when you have two neighbouring areas with different market prices (due to cost of living, salaries, etc. etc.)

    In 'The Good Old Days'(tm) this wasn't a problem. Goods, services and the workforce were not mobile - companies could charge according to the local market and achieve the maximum profit for that region. The workforce itself is kept in place because staying put is comparitively cost effective to moving (in both financial and personal sense).

    Not anymore. Cars can be bought in Europe and imported over to the UK, Japanese games can be imported to the US. While labour is still relatively static (I aint moving anytime soon) goods are comparitively free to move around and they happily do. They will continue to do so - even with customs intervention (look at drugs).

    Higher prices in affluent areas will come under pressure from cheap imports *until* wages in the other areas rise to create an equivalent cost. Companies should stop trying to fiddle with things and just let people buy where they can & want. Unless they're gloriously underselling in one region (more fool them) the effort required to prevent is probably not cost effective.

    Who's betting Nintendo offer help with importing. They're doing everything else right...

  • by Anonymous Coward on Saturday October 21, 2006 @05:32PM (#16531247)
    > Advance Wars for the GBA, for example, only hit the UK 6 months after its US release. The same thing applies to DVDs - many titles are available in the US well before the UK.

    The reason for this is because traditionally companies either buy or sell distribution rights to items. In the land of consoles we call them 'publishers'. The publishers job is to encourage retailers to purchase copies of a new game. This is usually done by someone that has a relationship with the company. In the UK you want your publisher to have a relationship with games.com, and whatever brick and mortar video game stores there are. In the US you want a publisher that have good relationships with gamestop and walmart. Major titles that launch worldwide on or about the same date usually have a publishing house behind them with global power, other games (such as 'Worms') will come out in Europe long before they get a US release because Team17 has distribution channels in europe, but doesn't in the US.

    When people circumvent these publishers by self importing, it makes it a lot riskier for a publisher to do business which hurts large companies like Sony.
  • Re:Globalization (Score:5, Interesting)

    by Anonymous Coward on Saturday October 21, 2006 @05:51PM (#16531385)
    "Frankly this pisses me off. I'm getting fucked over both ways."

    Yup, except it's a 4-way, not a 3-way. Globalization ultimately works around nation governments too; thus, there is little effective oversight on the international level to force fair play on multi-national interests.

    For example, there are no international anti-trust or price fixing laws that I'm aware of. This has a signficant effect on pricing as well as penetration (pun not intended), such as allowing established industries (e.g. RIAA and MPAA) to charge emerging markets far less for their products. Meanwhile, established markets pay full price, or artificially higher than what would normally be decided by the market (due to intellectual propery laws i.e. patents, copyright). This is why we see can see the same exact products being sold in the US, Mexico, and China go for far far less in the last 2 countries. US and EU college students see this with book pricing. MS OS pricing in Asia indicates this as well.

    iow, in some ways, you are essentially subsidizing what amounts to a product loss leader to establish a brand in up and coming markets. In other ways, you are denying fair competition on those emerging markets when they should be protected; those poorer nations have little choice but to abide due to pressure from wealthier nations. (And I believe this is somewhat similar to one of the arguments made against the $100 PC.)

    Conversely, those same laws can be used to deny products in those poorer countries as well. In doesn't make logical sense until you realize that companies don't want this importing to occur back to wealthier countries they are established in (see certain aspects of the pharmaceutical industry, although I think they have a fairer policy than the copyright industry groups).
  • Re:Globalization (Score:1, Interesting)

    by HappySqurriel ( 1010623 ) on Saturday October 21, 2006 @06:03PM (#16531461)
    One thing you have to consider is that 9 times out of 10 price differences in a country are directly related to the cost of doing buisness in that country. Look at this chart ( http://images.forbes.com/media/2006/05/Overall_Tax _Burden_Governemt_Spending.pdf [forbes.com] ) when you average the total tax burden of European countries you get a rate in the 40%-45% range, when you look at North America the united states is the primary consern at 25.5% (Canada actually has a pretty decent Corporate tax rate because we have bad personal income tax rates), and Japan rests at about 25%. Since Sony/Microsoft/Nintendo all have to pay an additional 15%-20% tax in the European region they need to charge 15%-20% more on their items to make the same profit from their products.

    Always remember, no company pays corporate taxes their customers pay corporate taxes; if you want low cost affordable products lower your corporate tax rate.
  • Re:Globalization (Score:4, Interesting)

    by Bertie ( 87778 ) on Saturday October 21, 2006 @06:22PM (#16531565) Homepage
    They charge VAT on FOOD?

    Wow.

    Here in the UK, the general attitude has always been that there's no VAT on necessities, so food, books, and children's clothes, among other things, don't have any (but if you eat in a restaurant, you pay VAT, by the way). I was amazes when a Spanish colleague of mine told me the other day that he had to pay VAT on the house he just bought, but food? That's insane.
  • by Nazmun ( 590998 ) on Saturday October 21, 2006 @06:24PM (#16531583) Homepage
    At least when you look from the perspective as a U.S. citizen. Locally bought consoles were always cheaper then having them shipped from overseas.
  • Re:Globalization (Score:3, Interesting)

    by ColdWetDog ( 752185 ) on Saturday October 21, 2006 @06:29PM (#16531617) Homepage
    High blood pressure is a side effect of being a libertarian in Sweden.

    Well, at least you get your health care and medications paid for. Here in the US, we get the high blood pressure from our insane politicians and have to pay for everything by ourselves. Any way you look at it, you lose.

    Cheer up though, you don't have to live in Cleveland.

  • by dracocat ( 554744 ) on Saturday October 21, 2006 @06:31PM (#16531631)
    Why?

    Factories can only produce so many per month.

    You mean everybody should wait 6 months to a year until there is enough on supply so that you can go into a store and buy one?

    So you can build more factories and increase the price per unit because in 6 months there will be less demand, or everyone can wait six months so that everyone gets a fair shot.

    If it was up to me I would say sell them one at a time as they come off the end off the assembly line! This applies to the xbox and the wii as well. I want my wii now, not after stock has been built up!
  • by mrchaotica ( 681592 ) * on Saturday October 21, 2006 @07:41PM (#16532127)
    Sony themselves have to meet the legal standards before they can import their products to the EU. Shouting 'foul' when someone else tries to bypass those requirements is not unreasonable.

    WTF?!

    Sony and Lik Sang are both trying to sell exactly the same damn thing -- PSPs. If the ones sold directly (by Sony) meet the requirements, then the ones sold through a middleman (Lik Sang) do too!

  • by Tim C ( 15259 ) on Saturday October 21, 2006 @08:22PM (#16532427)
    Sony and Lik Sang are both trying to sell exactly the same damn thing

    From TFA:

    In his ruling yesterday, Judge Michael Fysh found that Lik-Sang - which offered Japanese PSPs to European consumers via its website - was in breach of intellectual property rights.

    Are the European and Japanese PSPs "exactly the same damn thing"? Right down to power adaptor, etc? (Honest question, I have zero interest in the PSP so I don't know) If not, then they're not the same thing, and it's possible that they may not meet the same regulations.

    That said, I fail to see how what Lik Sang is doing breaches IP rights - in fact, imho, that's utter bullshit.
  • Re:Globalization (Score:2, Interesting)

    by pafrusurewa ( 524731 ) on Saturday October 21, 2006 @09:40PM (#16532825)
    This is why we see can see the same exact products being sold in the US, Mexico, and China go for far far less in the last 2 countries. US and EU college students see this with book pricing.
    I think you mean "US and UK college students". I'm in the EU and we don't really have a university textbook industry here. Most of the time professors will provide their own comprehensive and inexpensive scripts which are updated every year or they'll just post their material online. Some people recommend books but not textbooks specifically (so there's no price-gouging).
  • by protomala ( 551662 ) on Saturday October 21, 2006 @09:45PM (#16532853) Homepage
    I'm curious to listen what Sony have to say about countries not served importing units.
    You know, they never released any playstation here in Brazil.
  • Re:Fixed it (Score:3, Interesting)

    by drinkypoo ( 153816 ) <drink@hyperlogos.org> on Tuesday October 24, 2006 @11:45AM (#16560868) Homepage Journal
    That's not true either. Import hardware is more expensive. What they're trying to do is stop people from being able to play games that are sold out of their region. This is related to the same issue in DVD-land, and basically it has to do with legal price-fixing. It's legal for them to set arbitrary prices in different countries, for effectively the same product. I mean a lot of DVDs are for example sold in English, French, and Spanish. There's nations with those languages in a variety of regions so they get to sell the same content (with the audio tracks and subtitles mastered in a different order, basically) for different prices in each market to maximize sales. Sony is just trying to protect their price-fixing racket. Of course, I already went over (with a coworker who probably now thinks I'm crazy if she didn't already) the many reasons why I would not buy any Sony products in the future - this is just one more reason. Sony has really been trying hard to lose customers in the last few years.

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