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Forums - Nintendo Discussion - Will the Switch do well in Brazil?

IcaroRibeiro on 19 August 2020
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



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AsGryffynn on 19 August 2020
RolStoppable said:
Will heavily depend on pricing. Brazil has a habit of slapping enormous taxes on anything sold in Brazil, so Nintendo officially distributing in Brazil may result in higher prices than the imports of the black market which have been a thing for the last three years.

But because imports have been done for years, it's unlikely that we'll see a notable increase in global Switch sales. If the official pricing is good, it shifts sales to Brazil locally and in turn the number of imports will go down. That would still be a net gain overall, but nothing that will be clearly visible in weekly global numbers.

FTFY. 

Lucro Brasil is a thing for a reason (or did it magically stop a year or so ago?)



IcaroRibeiro on 19 August 2020
AsGryffynn said:

FTFY. 

Lucro Brasil is a thing for a reason (or did it magically stop a year or so ago?)

You meant Custo Brasil



IcaroRibeiro on 19 August 2020

Just found this print from a Brazilian retailer selling a PS3 for 7980 BRL 14 years ago

Using exchange rate from that time, it was ~2700 USD. Almost 3k for a gaming console. I'm sure most americans could buy a car with that much 



DonFerrari on 19 August 2020
AsGryffynn said:
RolStoppable said:
Will heavily depend on pricing. Brazil has a habit of slapping enormous taxes on anything sold in Brazil, so Nintendo officially distributing in Brazil may result in higher prices than the imports of the black market which have been a thing for the last three years.

But because imports have been done for years, it's unlikely that we'll see a notable increase in global Switch sales. If the official pricing is good, it shifts sales to Brazil locally and in turn the number of imports will go down. That would still be a net gain overall, but nothing that will be clearly visible in weekly global numbers.

FTFY. 

Lucro Brasil is a thing for a reason (or did it magically stop a year or so ago?)

Well that is the thing, because of lack of official distributor the price for Nintendo skyrocket faster. Before dolar crash here a Sony exclusive was 200 while Nintendo was already over 300.



duduspace11 "Well, since we are estimating costs, Pokemon Red/Blue did cost Nintendo about $50m to make back in 1996"

http://gamrconnect.vgchartz.com/post.php?id=8808363

Mr Puggsly: "Hehe, I said good profit. You said big profit. Frankly, not losing money is what I meant by good. Don't get hung up on semantics"

http://gamrconnect.vgchartz.com/post.php?id=9008994

Azzanation: "PS5 wouldn't sold out at launch without scalpers."

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RedKingXIII on 19 August 2020

It's too early to tell because we don't know the price of the games and the console yet, and the price is basically the only thing that matters. But based on Nintendo's past history with Brazil I'm going ahead and say no. It's probably just going to be officially imported here, meaning it won't be cheap. The games will also be expensive and never drop in price, unlike the PS4/XBO offerings. In the end it's probably not going to do very well and it won't matter much on the weekly sales.

What I'm most excited about is the prices of acessories though. I've been looking for a Pro Controller and a new pair of Joycons for a while now... And it's extremely expensive. They are hovering about R$ 750~R$ 1000 (U$ 135~180) for quite some time. Meanwhile a Dualshock 4 is "only" R$ 250 (U$ 45)... I hope prices go down since now acessories and everything will be sold officially, but I'm not holding my breath.



jonathanalis on 20 August 2020

The only chance is if they start to manufacture/mount the Nintendo switch in Manaus.
With the commercial war between China and US, Nintendo is trying to find other places to manufacture. Also, the brazilian currency is very under valuated currently.
Yet, it would be a very bold move to bring factories to Brazil, I still doubt.



Bofferbrauer2 on 20 August 2020

If Nintendo were to produce them there, I would have said yes, definitely. But if not, then it won't change much, just probably make buying the games and possibly the console easier.



The Nintendo eShop rating Thread: http://gamrconnect.vgchartz.com/thread.php?id=237454 List as Google Doc:  https://docs.google.com/spreadsheets/d/1aW2hXQT1TheElVS7z-F3pP-7nbqdrDqWNTxl6JoJWBY/edit?usp=sharing

The Steam/GOG key gifting thread: https://gamrconnect.vgchartz.com/thread/242024/the-steamgog-key-gifting-thread/1/ 

Free Pc Games thread: https://gamrconnect.vgchartz.com/thread/248138/free-pc-games/1/

Nautilus on 20 August 2020
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.



My (locked) thread about how difficulty should be a decision for the developers, not the gamers.

https://gamrconnect.vgchartz.com/thread.php?id=241866&page=1

IcaroRibeiro on 20 August 2020
Nautilus said:

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.

Where? I browser games on Mercado Livre every week. Good Luck finding Animal Crossing for less than 400 BRL there, or Mario Kart 8 or BOTW for less than 380

I only find games for 300 BRL on very obscure Facebook selling groups. Maybe minor game releases like Astral Chain we can find for 320-340 BRL, but really big blockbusters? 

As for eshop, Switch is not Steam, its shop is not region lock, that's the problem. If they go aggressive on pricing digital store (let's say 200 BRL) they will register a much more massive loss because elsewhere people will just change their regional eshop to buy in BR eshop