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In a surprising bit of news, Nintendo has announced that it will cease all distribution of handhelds, consoles, and games in the country of Brazil. The apparent reason is high tariffs, which greatly increase the cost of imported goods in the region. This isn’t a problem exclusively facing Nintendo, either. Competitor Sony’s PlayStation 4 retails for over $1800 in the country. Bill van Zyll, Director and General Manager for Latin America of Nintendo of America, issued a statement regarding the situation:
Brazil is an important market for Nintendo and home to many passionate fans but unfortunately challenges in the business local environment have made our current distribution model in the country unsustainable.
These challenges include high tariffs on imports that apply to our industry and our decision not to have a local manufacturing operation. Working together with the Juegos de Video Latinoamérica, we will monitor the evolution of the business environment and evaluate the best way to serve our Brazilian fans in the future.
…We will continue to monitor the environment in the country so that we can evaluate future opportunities.
Distribution will officially come to a conclusion sometime this month. While it’s unfortunate to hear about Nintendo’s struggles in the region, the news has to come as a bigger disappointment for Brazilian gamers that have already purchased a Wii U or 3DS. With the company’s practice of region locking still in effect, it seems that those particular fans are left with few options to purchase additional games. Nintendo president Satoru Iwata recently expressed that the company is considering an end to the controversial practice. This would seem to be another reason to hope that comes sooner, rather than later.
What do you think about the news? As always, let us know in the comments below!
Source: Nintendo Life
