Nintendo stops sales in Brazil due to business challenges

Due to prohibitive import taxes and other challenges, Japan’s Nintendo Co. Ltd. is no longer doing business in Brazil. This means the video game maker’s consoles and game titles will not be available to consumers in Latin America’s biggest economy.

Sales will continue in other Latin American countries, where Nintendo – which imports the games to these markets – has a different distributor, according to MarketWatch.

Although Bill van Zyll, Nintendo’s general manager in Latin America indicated in a statement current business climate made the company’s business “unsustainable,” the company is not giving on Brazil. At this time, van Zyll told local newspaper O Globo that selling products in Brazil “did not make sense.

“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,” Nintendo’s statement reads, according to Kotaku. “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.”

MarketWatch reported that Nintendo’s Super Smash Bros. title was on sale for $74 at Americanas.com.br, one of Brazil’s leading e-commerce portals. By contrast, the price is 20 percent higher than the game’s retail price in the U.S.

Brazil is notorious for its red tape, ranking 120th out of 189 countries in the World Bank Group’s “ease of doing business” index this year – up three slots from last year.

The country was last in “paying taxes” category, and “the World Bank estimates it takes 2,600 hours a year to comply to the Brazilian tax code, compared with 366 hours on average for all of Latin America and the Caribbean and 175 hours in developed countries,” MarketWatch reported.

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