Legal Magazine

Tariffs and Nintendo Not Mixing Well in Brazil

Posted on the 27 January 2015 by Angelicolaw @AngelicoLaw

Due to high tariffs, Nintendo has announced that it will be ending distribution of software and hardware in Brazil as of this month. Nintendo is not the first video game company to face problems resulting in prices on video games and video game consoles being higher in Brazil.

In 2013, PlayStation 4 consoles were selling for R$3,000 (approximately $1,800) and Xbox Ones were selling for R$2,199 (approximately $1,005). Both consoles sell for between $400 and $500 in the U.S. by comparison. Although Xbox and PlayStation continue to distribute to the Brazilian market, representatives for Nintendo feel the tariffs make business with the Brazilian market unprofitable. Producing the products within Brazil’s borders would eliminate the tariff issue, but Nintendo has chosen not to invest in Brazilian manufacturing operations.

Even though Nintendo is pulling out of the Brazilian market, its products will continue to be available in other Latin American countries. Those already with the consoles will also still be able to use them. They just won’t be able to buy new consoles or new games in Brazil.

Nintendo’s decision to leave Brazil does not necessarily mean the company will never return to the country. It just means that changes will probably have to take place concerning import policies in Brazil before the company will consider a return to the Brazilian market. Bill van Zyll, Director and General Manager for Latin America of Nintendo of America, said:

Brazil is an important market for Nintendo and home to many passionate fans, but unfortunately, challenges in the local business environment have made our current distribution model in the country unsustainable…. We will continue to monitor the evolution of the business environment and evaluate how best to serve our Brazilian fans in the future.

Fortunately for Brazilian Nintendo fans, even as the company pulls out of the country, the fans will not be completely left without their newer Nintendo-specific games. Because Brazil is in the same region as other Latin American countries as well as North American countries, fans will not be locked out of the games if they choose to purchase them through these other countries’ markets. It may not be as convenient as purchasing them from a local retailer, but for Nintendo game fans, it is better than nothing.

Back to Featured Articles on Logo Paperblog