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

rrrnearrr on 28 September 2011

They expect to produce 17k consoles a Week
Microsoft new games are R$ 129.00(about 70 dollars)
Sony new games have the outrageous price of R$ 199.00(about 110 dollars)



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DélioPT on 28 September 2011

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.



mrstickball on 28 September 2011
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.



Back from the dead, I'm afraid.

Seece on 28 September 2011
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.



 

rrrnearrr on 28 September 2011

Gears 3 already sold on day one more than Gears 1 and 2 combined lifetime.



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rrrnearrr on 28 September 2011
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.


I don't know what do you mean by "indigenous", but Sony does have factories in Brazil, they just don't produce the ps3 here, they import it and put a new box and cable here.



Michael-5 on 28 September 2011

Wait....what? Why are 360 consoles so expensive in Brazil? Who spends $800 on a video game console?



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mrstickball on 28 September 2011
rrrnearrr said:
mrstickball said:

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.


I don't know what do you mean by "indigenous", but Sony does have factories in Brazil, they just don't produce the ps3 here, they import it and put a new box and cable here.

If they have to import them, then they are likely subject to huge tariffs, thus the massive costs vs. a 360 which is built in Brazil.



Back from the dead, I'm afraid.

rrrnearrr on 28 September 2011
mrstickball said:
rrrnearrr said:
mrstickball said:

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.


I don't know what do you mean by "indigenous", but Sony does have factories in Brazil, they just don't produce the ps3 here, they import it and put a new box and cable here.

If they have to import them, then they are likely subject to huge tariffs, thus the massive costs vs. a 360 which is built in Brazil.


Yeah, I know that. But I wanna know what in an indigenous factory... What is it?



mrstickball on 28 September 2011
rrrnearrr said:
mrstickball said:
rrrnearrr said:
mrstickball said:

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.


I don't know what do you mean by "indigenous", but Sony does have factories in Brazil, they just don't produce the ps3 here, they import it and put a new box and cable here.

If they have to import them, then they are likely subject to huge tariffs, thus the massive costs vs. a 360 which is built in Brazil.


Yeah, I know that. But I wanna know what in an indigenous factory... What is it?

www.m-w.com:

 

Definition of INDIGENOUS

1
: produced, growing, living, or occurring naturally in a particular region or environment <indigenous plants> <the indigenous culture>
The factory is producing an indingenous version of the Xbox 360. Its being built and assembled in Brazil, likely using local resources. Because of this, its not subject to the massive tariffs that the Brazillian government lobbies against foreign products. This makes it much cheaper to sell to the consumer.


Back from the dead, I'm afraid.