Nintendo is no longer doing business in Brazil. The gaming giant recently halted hardware and software sales in the country citing high import fees and taxes for electronics importers as it contemplates its next step. Nintendo’s decision will not affect distribution in other Latin American regions.
As outlined in a report from VentureBeat, Brazil is known to impose high tariffs to protect its manufacturing jobs and encourage outsiders to build factories in the country and thus, create even more local jobs. It’s a path that Nintendo could easily take but haven’t thus far.
Nintendo of America Latin America general manager Bill van Zyll said Brazil is an important market for the company and home to many passionate fans but unfortunately, challenges in the local business environment have made their current distribution model unsustainable.
Indeed, being a gamer in Brazil is an expensive affair. Sony’s PlayStation 4, for example, retails for $4,000 Brazilian Real which translates to roughly $1,500 while the Xbox One commands R$2,200, or a little over $825. The Xbox One is likely cheaper due to the fact that Microsoft operates a manufacturing plant in the region, highlighting just how expensive it can be to import goods.
Even the Wii U is expensive, going for R$1,899 or about $700 USD. It’s still cheaper than the new consoles from Microsoft and Sony but not by much.