Why is there such a difference in console prices?

it's always been like that though. regional pricing screw-over. customers in one market are willing to pay higher price than other markets (partly because it's always high, partly because they have higher minimum wage/quality of life, list goes on)

Because developers and publishers just love fucking over Europe with it's $1=€1 mentality. And if it ain't that, they'll outright price gouge your country because they can (eg. Australia, where even with the $A close to parity with the $US, they still charge an extra $100-$150 more). Region locking also plays a part in this (the people in the PAL region are usually the ones who suffer most from this).

Even after taxes and shipping costs there shouldn't be such a large price disparity. Minimum wages should really not be taken into account when it comes to console manufacturing, because most of them are all manufactured in the same place, just that they add little tweaks like region locking (hate this) or changing the power supply etc.

At least Sony have said the PS4 is region free, so we can all go and import them from the US, and get an adaptor for the power supply.

Well i know i wont be buying any of them at that price lol

because they can and people are still dumb enough to pay it.
lets think over a scenario where the ps4 is released in the EU and for 1 week noone, really noone buys it. you'd see how fast the price would be dropped to US standard. but yea, people are so needy, noone would wait a week to pay 100€ or $ less.

Taxes in USA 5-8% (And not included in that price) vs Taxes in UE 19-25% (and included in that price)

Taxes, shipment, different market, zzz.

Because one has mandatory Kinect in the package, one doesn't. Simple. You're welcome.
Oh, I see you meant why they think 1 dollar = 1 euro. I only read the title at first (I thought you meant why Xbox One is 500 and PS4 is 400). It's because they're assholes.

Because distributors set the regional prices, and they're nothing more than scumbags and scoundrel.
Just take Steam for an example : 1$ = 1€....