Will the Switch do well in Brazil?

[Nautilus]

IcaroRibeiro said:

Nautilus said:

Second of all, Nintendo will never be able to beat the Grey Market prices, which is where most of the sales of (physical) games comes from. Since the Grey Market dosen't pay taxes, and sometimes the goods they sell are stolen, they will offers their products at a lower price than Nintendo ever could, always. 

They can

It's actually the only media they can REALLY afford lowering the price. Physical games don't need to be imported (neither the console but I doubt they will produce Switch here anyway), they can produce copies here and be taxed only with IPI and ICMS, without II

Most of resellers actually buy those games from foreign market. I don't know how they avoid import taxes but anyway, they were always sold for around ~75 USD here, not 60 USD. That's why they were always priced 300 BRL even when dollar was 4 BRL or less. Now they are almost as high as 400 BRL (and those are online market like Mercado Livre or Amazon, I swear physical gaming stores is already selling BTOW for 450 BRL in my city)

Heck, even if Nintendo sells physical games for 400 BRL (75 USD) it WILL affect second hand sellers, as we are now buying in certified stores that can pop up with retail discounts, shop guarantee and whatnot. But at 400 BRL people will be more likely to still buying digital over physical

Will they? Not sure. I don't know what they want here, but I'm more confident for it to shake software market than hardware market

No, I don't think it would. Physical sales, even buying through the internet, you can easily find them for around 300 to 350 BRL. If Nintendo came with the usual prices or even higher, people won't simply jump ship from their trusted sellers, knowing their prices are as competitive, and they know they will deliver the goods.And I really doubt that Nintendo(or any company, for that matter) will be aggressive with the console price(be it manufacturing in Brazil or elsewhere) simply because we are entering a gigantic economic recession affecting every single country in the world. It's time to be conservative, not bold.

But honestly? One place they CAN compete and can push games is through their online store, the eshop. IF they put every single game the Switch gets in the Brazillian eshop and pushes for regional pricing, then they can get competitive real quickly. Digital sales affords them to avoid all logistical hassle, plus any costs with manpower and/or delas with retailers(and their cuts).

But just so we are in the same page: Without becomming a whealtier country, Brazil will never be that important in the grand scheme of things. So whatever Nintendo does, it won't matter much to them in the short and mid term.