Nintendo halting console and software distribution in Brazil
Nintendo will end its distribution of hardware and software in Brazil due to high import tariffs. The company opted not to create a local manufacturing operation to avoid the import fees in the emerging market.
"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 stated 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."
To get a sense of the sticker shock these tariffs have, when Sony's $400 PlayStation 4 launched in Brazil it was approximately $1,800. Sony explained at the time the mark-up was caused by various import fees and taxes.
"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," said Nintendo. "We will continue to monitor the evolution of the business environment and evaluate how best to serve our Brazilian fans in the future."
