PS3 games costs about $120 new over there, yet Euro games don't cost €95.
Actually, they're about $80 - $90 new, here. They used to be about $110, though.
Why is everything so expensive there?
As for this... It's a lot of economy related stuff that's difficult to explain properly and nobody actually cares about. In short: Smaller population, less demand for products, prices are higher.