​Nintendo to end operations in Brazil

High import duties prompt the end of local console and game distribution

It's game over for Nintendo in Brazil as the Japanese firm announced the end of its local operations due to complexities around tax and product distribution.

According to the company, high import tariffs and the fact of not having local manufacturing facilities made it impossible to operate in Brazil.

The decision means that local representative Gaming do Brasil, a subsidiary of Juegos de Latin America, will no longer be importing Nintendo's games to the country.

"Unfortunately, challenges in the local business environment have made our current distribution model unsustainable in the country," Bill van Zyll, the company's general manager in Latin America, said in a statement.

Nintendo's decision to end console and game distribution in Brazil will not impact other Latin American countries.

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The cost to bring Nintendo's products to Brazil is inevitably relayed to the final consumers: one of its best-sellers, Super Smash Bros, retails locally for the equivalent of $74 and is available in the US for about $60, so 20 percent less.

After the announcement, Nintendo's van Zyll told local news portal G1 that the Japanese firm "is not giving up on Brazil," but taking a step back to rethink its business model and eventually find a way to reestablish its official sales operation locally.

"Because of the [high import tariffs] we are unable to bring our products to Brazilian consumers at a price that makes sense," he told G1, adding that the alternative of setting up a manufacturing base locally is not financially viable either.

The fact that Nintendo is ending its official operations in Brazil does not mean gamers will not be able to get hold of the company's products: with no consoles and games available at high street retailers, consumers will have to go through importers - at a possibly higher price tag - or resort to the grey market.

On the topic of prices to final consumers that do not make sense, Apple's prices continue to rise in Brazil. The company imports some of its products and makes other items locally, through its manufacturer Foxconn.

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