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Nintendo Ceases the Sale of Consoles and Games in Brazil

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On January 9, Nintendo announced that it would no longer be selling consoles and games in Brazil due to the country’s unreasonably high tax on electronics, ending a four-year business partnership.

“Starting in January 2015, Gaming do Brasil, a wholly-owned subsidiary of Juegos de Video Latinoamérica, GmbH, will no longer distribute Nintendo products in Brazil,” Nintendo said in a statement to Game Informer. “Despite the changes in Brazil, Juegos de Video Latinoamérica will continue to be Nintendo’s distributor for Latin America and they remain committed to the brand and the region.”

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To buy a PS4 in Brazil, consumers must be prepared to shell out 3,999 Brazilian Real, or $1,850 USD. The Xbox One is slightly cheaper, selling for about R$2,200 or $1,016 USD due to Microsoft’s in-country factory to avoid high import costs. Nintendo’s Wii U costs R$1899, or $829 USD. Games for these products cost R$179 to R$199, or $77 to $87 USD. According to Sony Brazil, between 60 to 70 percent of the cost of the consoles is made up of import fees and taxes, a major contribution to Nintendo’s decision to halt sales of their products in the country. The company has no plans to completely withdraw from Brazil, but are halting sales until an alternative solution can be found.

“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,” the company said. “These challenges include high import duties that apply to our sector and our decision not to have a local manufacturing operation. We will continue to monitor the evolution of the business environment and evaluate how best to serve our Brazilian fans in the future.”

Nintendo declared the challenges in the local business environment ‘unsustainable’, but has yet to release any detailed future plans for their operation in Brazil or a replacement distributor. This, however, doesn’t mean that gamers won’t be able to play Nintendo-branded games in Brazil – unfortunately, they will need to either purchase the Wii U or the 3DS from private importers, likely at a much higher cost. For pretty interesting information on the industry climate in Brazil, check the video from Extra Credits below.

About Deborah Crocker

Deborah is a 22 year old semi-hermit currently plodding through her senior year of college and getting her feet wet in game journalism. She has a somewhat unhealthy obsession with high fantasy, video games, novels, and Elder Scrolls. When she's not in front of a screen, she enjoys singing and a bit of beading. She's also currently on the hunt for the restaurant with the best cheeseburger.

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