Nintendo Pulls Out From Brazil Due To High Import Duties

Video game console maker Nintendo is pulling out from Brazil, citing high import taxes and other tariffs on electronics. The company will no longer sell Nintendo consoles, games or other accessories in the country.

"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 Latinoamerica, GmBH, will no longer distribute Nintendo products in Brazil. Gaming do Brasil has distributed Nintendo products in the country for the past four years," said Nintendo in a statement.

However, the company will continue its businesses in other countries of Latin America.

"Despite the changes in Brazil, Juegos de Video Latinoamerica will continue to be Nintendo's distributor for Latin America and they remain committed to the brand and the region," added Nintendo.

Electronic devices, including consoles are super expensive in Brazil. PS$ in Brazil costs $4,000 Brazilian Real ~ $1,500 USD while the Xbox One is available at R$2,200 ~ $800 USD thereabouts. Microsoft has its own manufacturing plant in Brazil, therefore it has managed to cut the cost down up to some level.

In the statement, Nintendo stated that it does not plan to have a local manufacturing operation in Brazil.