Video-game Giant Nintendo says it is pausing operations in Brazil while it assesses how to deal with high import taxes.
The Japanese Kyoto-based firm admits it is struggling to cope with high import taxes in the Latin American country which currently has its games distributed through Gaming Do Brasil and JVLAT.
“We are pausing on Brazil while we look for a sustainable (distribution) model,” quoted the company’s Latin America General Manager Bill Van Zyll, adding “We are going to go back to the drawing board to create a totally new model”.
The firm quoted that high tariffs had squeezed margins to a minimum resulting in consumers being forced to pay high prices for best-selling games such as Super Smash Bros which retails some 20% more in Brazil than in the US.
Mr Van Zyll told Brazilian media last week that prices had to “make sense” for consumers and that setting up a local manufacturing base was not viable. High tariff imports had persuaded the firm to withdraw from “an important market for Nintendo” even though the company still believes it could benefit greatly from Brazils strong economy, young population and rising wages.
Source Business Times