Late last week Nintendo announced that it would be leaving the Brazilian market. The company points to the country’s high taxes on electronics as the primary reason for the decision.
While the tariffs alone makes doing business in Brazil an unattractive, there’s associated cost and process importing into the country makes Brazil a market worth skipping for Nintendo. The cost of the Wii U console currently is around $700 while the PS4 and Xbox One are $1,500 and $800 respectively.
Sony and Microsoft are subject to the same fees as Nintendo. Microsoft has had a hold on Brazil for some time while Nintendo hasn’t been doing so hot. You could liken it to Microsoft in Japan as far as never getting a significant foothold in a market.
Microsoft has the benefit of having a factory in Brazil which results in lower prices on their consoles. When Sony were releasing the PS4 the company mentioned that it was looking into a way to lower the price of the console there. As indicated by the price, Sony hasn’t moved on it yet.
Even though it’s leaving Brazil, Nintendo has said that it would continue to sell consoles elsewhere in South America and that it looked forward to seeing how it could eventually cater to its fans in the market.