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Nintendo leaving Brazilian gaming market

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Distribution of games and systems in Brazil to end this month
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  • Sunday, January 11, 2015

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Nintendo announced last week that they will cease their representation in Brazil. All consoles and video games distributed by Nintendo will no longer be sold in Brazilian stores due to high tariffs on the products enforced by the country's government.

These tariffs are enforced in an attempt to have businesses build their own manufacturing plants in the country to stimulate the local economy. Because of this, Nintendo's consoles and games are sold for much higher prices than elsewhere in the word, with the Wii U costing $1,899 Brazilian Real, approximately 722 US dollars. Nintendo could get around this by building their own manufacturing plant, but that would likely do both Nintendo and the prices of their products more harm than good.

The distribution of Nintendo products elsewhere in South and Latin America is not affected by this decision.

Official Statement:

In response to ongoing developments in the Brazilian market, Nintendo of America Inc. today announced changes to the physical distribution of its products in that country. 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. Gaming do Brasil has distributed Nintendo products in the country for the past four years. 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.

"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. 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.

  -- Official statement by Nintendo