Nintendo is one of the biggest gaming companies in the history of the industry, thanks to 30 years of pumping out iconic games like Super Mario Bros and Legend of Zelda. When Nintendo released the WiiU in 2012, it was received by the public with mixed results. However, the release of popular games like Mario Kart 8, Legend of Zelda: Wind Waker HD and Super Smash Bros have turned it into a major player in 2014's console wars.
Considering all this success, Nintendo's recent decision to stop selling their products in Brazil may seem a bit odd.
According to UOL Jogos, Brazilian gaming subsidiary Gaming do Brasil will stop distributing Nintendo games and consoles in February 2015. Nintendo stated that this was because of the exorbitant taxes the company is required to pay in order to sell their product in Brazil.
"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 unsustainable in the country", said Bill van Zyll, the general manager of Nintendo's Latin American branch.
Brazil has a history of imposing high tariffs on international companies. Brazilian officials have stated that they do this in order to protect local businesses. However, this tariff has caused other tech companies to pull out of Brazil, including HTC and Durham in 2012.
This practice has also caused companies to raise their prices. In 2013, Playstation 4 cost the local equivalent of $1850 in Brazil.
Engadget noted that other companies have gotten around the tariffs by adding more employees in Brazil. Apple did this in 2011 by opening a Foxconn factory in Brazil in order to keep selling iDevices. While Van Zyll hasn't stated any intention to pursue this option, he did state that Nintendo will continue to watch the Brazil market in order to see if any options arise that will let Nintendo continue selling their products locally.
As of September 30 2014, 7.29 million WiiU units and 45.52 million 3DS units were shipped worldwide.
