Nintendo to Cease Distribution in Brazil Due to Tariffs
First, Brazil gets a major setback in the World Cup's final game. Now, Nintendo is going to be pulling out of Brazil's video game market entirely.
Nintendo is no longer selling its products in Brazil due to the country's high tariffs and import fees on electronics and video games, according to Kotaku. Despite recognizing that it has many fans in Brazil, Nintendo has decided it's no longer profitable for the company to continue selling its products in the country. Don't fret, South America -- Brazil is the only country where Nintendo will stop selling its games and consoles.
When looking at the numbers, the amount of money that consoles cost in Brazil is ridiculous. The PlayStation 4 costs around $4,000 Brazilian Real (almost $1,500 USD) and the Xbox One is selling for R$2,200 ($800 USD). These absurdly inflated prices are the result of Brazil's high import fees and taxes. While Microsoft does have a local manufacturing plant in the country, Nintendo refuses to place one in Brazil. This means that Microsoft's products are significantly cheaper to distribute throughout the country than Sony's or Nintendo's, at least comparatively. The Wii U is currently selling for about $700 USD, but for a console that sells for around $300 in the United States that's still a high price tag.
If you live in Brazil and were eyeing the Wii U, we would suggest picking it up while you still can. You may have to go bankrupt, but it's OK -- the Wii U has Super Smash Bros. Now the question is if the Xbox One can push the PlayStation 4 off the market as well considering their extreme differences in price.