Is Nintendo really leaving Brazil behind?

Hello, all.

Sorry for posting this so late. College is taking most of my time and I have a lot of stuff to study. I will try to keep the site updated at least once a week.

Well, don’t know if you guys checked that out. Nintendo is officially leaving Brazil…. at least is what most of the news are publishing.

However, in an interview gave by General Director of Latin America, Bill van Zyll to the Brazilian news portal G1.com (as you can check here) he said that they are not giving up of Brazil.

According to the news published on Monday 12th, 2015, Nintendo had informed last Friday – January 09th – that they have canceled the official distribution of Nintendo games in Brazil due to the high taxes. Still, Zyll said that the Nintendo products will still be available on the Brazilian market as long as the stores have them. (Blog’s Author note: In other words, if you are a Nintendo player, RUN and get the game you wanted so much before it ends.)

 

Still, regarding to the interview, Zyll said that they will keep working to get a solution or a different model for the Brazilian market and than bring to this market the news releases for 2015, like The Legend of Zelda: Majora`s Mask 3D and the new Star Fox and Zelda, for the Nintendo Wii U.

For the General director of Nintendo, there is a great solution for that, as the digital versions of the games, that you may find at the virtual eShop for the portable 3DS and soon will be arriving to Wii U console.

Another alternative for the Brazilian Import Taxes is the national manufacturing of Nintendo’s consoles, but for Zyll, this is not a right solution to the company where he says that “how can you establish a complex local process and expensive just to run away from the high taxes forced by the country? This is not so simple, because we thought and valuated this option and, over the end, we concluded that the cost benefits of local production is not the right solution”. (Blog’s Author note: In parts I agree with him. Its hard to bring the whole company to a specific place just because of the Taxes. And Brazil has some of the higher in the world…. so, we have a problem there…)

 

He complements that saying that this model of production is the main reason that Nintendo is behind in Brazil. He states that: “In one moment, the rule is to import, than everybody was importing and the prices were high, but this changed out of the blue; the new reality is that some companies are manufacturing their products nationally and that made theirs prices to drop, but we kept importing and with that we couldn’t have the right values”.

 Over the end about this subject, Bill van Zyll said that the objective of Nintendo is to get back to selling their products officially in the country, where he states that: “We are a patient company, we only need the right circumstances”.

Well, what you guys thing about that? Other companies like Sony and Microsoft already built their offices in Brazil and are doing really well. Personally – and going against what I said before – if they want to get competitive in the market here, they will probably have to deal with the taxes (which if any of you want to know, for a simple import process, you can add over 60% of the value after converting from USD/CAD/EUR or whatever you are bringing your product. That would be a gross value. After you may add the value of people, offices, building, renting, etc.

I truly believe that waiting is a good option – for now – but if you a smart guy/girl – and I believe you are because you are reading this – you probably know how the economy in Brazil is doing and waiting may not be a smart move to do right now. In a nut shell, things are getting worse over time and if you don’t jump in now, you may get more damage jumping later.

And you? What do you think about it? Should Nintendo go to Brazil and make it happen or “wait for the right moment”?

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