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This is a clever move by MS.
Taxes in Brasil in these products don`t allow for the gaming market to grow what it could. With Xbox 360 being produced there and the outcome being a serious cut in price, i`m pretty sure Xbox 360 will become successful there.

As far as i know, the normal taxes still apply to Nintendo and Sony. And seeing as Brasil is improving as an economy it would be wise for them to do something about it.