Nintendo Pulls Sales of Consoles in Brazil
David Curry | | Jan 12, 2015 09:19 AM EST |
(Photo : Reuters) Nintendo has confirmed a full pull out from the Brazilian market, following ridiculous import charges on electronics.
Nintendo has pulled all sales of consoles and video games in Brazil, following the countries high tariffs on electronics, which make it difficult for gamers to pick up the system for an adequate price.
It is not the first time electronic companies have struggled with Brazil, with customers having to pay hundreds of dollars more for electronics, if the electronic company does not base manufacturing in Brazil.
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Since Nintendo does not have any production factories in Brazil, high import duties have forced it away, despite the "many passionate fans" living in the country. The Wii U cost $700 in Brazil, lower than the Xbox One's $800 or PS4's $1500 price-tag, but still expensive compared to other regions, where Nintendo's console sells for less than $300.
Microsoft has been able to negate some of the cost by establishing a manufacturing plant in the heart of the Amazon forest, in the city of Manaus, allowing them to get cheaper import charges.
Nintendo reportedly has not seen much fanfare over its new Wii U console, and the 3DS is not as popular in Brazil as it is in other regions, allowing Nintendo a relatively safe move out of the region without too much effect on revenues.
Market research claims the Xbox 360 is still the most popular console in the area by quite a margin, but in the past few years a lot of Brazilian gamers have bought a PC to play games.
League of Legends and DoTA 2 have both seen large growth in the South American region over the past two years, mostly from Brazil.
Perhaps Nintendo's move out of Brazil will push other electronic companies to do the same, or bring up questions in the Brazilian government over ludicrous import charges, damaging the growth of the gaming and technology scene in Brazil.
TagsNintendo, WII U, Brazilian import charges, Electronics, Gaming Consoles
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