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As a Brazilian, all I can say is this:

Although taxes around here are ridiculous. Nintendo's excuses for leaving our market are just as ridiculous. The same taxes are not stopping Microsoft and Sony from translating their games to our language (Portuguese) and selling their consoles cheaper than Nintendo ones in the official market.

Nintendo never really took the Brazilian and the rest of Latin American market seriously. Even in their best times in Brazil, they only ollowed third party companies to sell their products here instead of having their own operation. During the 90s for example, you could buy a Genesis/Mega Drive for significantly less than a Snes.