Xbox 360 to be assembled in Brazil = up to 50k units per week + 40% price drop

[Seece]

mrstickball said:

Seece said:

mrstickball said:

Legend11 said:
I don't understand why it's so expensive there. How much is computer hardware?

Brazil has a massive 100%+ tariff on electronic imports. Because of that, its impossible to offer affordable goods that are imported. So the result is insanely expensive products unless they are indigenous.

Because of this move, they can make the console(s) in Brazil, offering them for far more reasonable prices.

Do you know if Nintendo and Sony approach this the same way, or if they still import? Could MS get a massive leg up here?

I don't think Sony or Nintendo have indigenous factories in Brazil. That is a huge advantage for Microsoft. Its also the same reason the Genesis has survived there for 10 years after it died in the US.. They made a locally-produced version for Brazil, and it sold gangbusters.

Alternatively, the return on such a system may be questionable - I am unsure how many units the X360 will sell in Brazil. It will help, certainly, but Brazil isn't a nation with a huge number of buyers that can afford such an expensive system. But rather, it may be a longer term strategy to win Latin America...Which could swing a few million units each generation to Microsoft.

Nice, this is obviously a long term approach by Microsoft, wonder why they didn't do it sooner! Good stuff.