So while low cost of living countries offset their low wages with cheaper housing, food and local services, imported stuff still costs the same and is relatively expensive as a result. Basically in those countries it really sucks to buy a computer, camera, even cars.
It makes enough sense, Microsoft isn't a charity, they're selling the console at a fairly competitive price already in the US, it's not going going to magically get cheaper just because it crossed a border, but it was still surprising to see that.
They of course are region encoded, but I suspect nearly anyone who frequents Hacker News knows how to get around that.
Only some things are particularly cheap in Mexico like labor and anything where labor is the main input, like services.
And some things that you'd think would be in reach of a Mexican software developer, like sending your kids to a decent private school, are not.