Over the last year Argentina has been experiencing a massive inflation crisis. The government is reporting 10% month on month inflation for most of the year. That means prices of consumer good, especially those made out of country by multinational corporations go up. The PlayStation 4 is set to cost $6,499 AR or $1,137 USD.
For comparison sake, The PlayStation 3 cost about $600 USD at time of launch. The average Argentinean makes about $10,000 USD per year according to the government, making the next generation out of many hands for quite a while.
(Via NeoGAF)