Brazilian 360s Go Local and Sell for Less

[Marshall Honorof]

Brazilian 360s Go Local and Sell for Less

Now Brazilians can buy 360s, even if they don't have a top hat, a monocle, or a swimming pool full of money.

Countries outside of Japan and North America are no strangers to shelling out a king's ransom for games and consoles. That problem isn't going to change overnight, but Microsoft will be making life a little easier for Brazilian gamers in October. Microsoft, in conjunction with Flextronics Inc., plans to open a manufacturing plant in Manaus, Brazil that will drive Xbox prices down by about 40%. Microsoft Gold memberships, Microsoft Points, and many Microsoft-published games will see reductions as well.

In preparation for the new systems, 360s on Brazilian shelves right now will receive a slight discount and include copies of Forza Motorsport 3 and Alan Wake. New systems will hit stores starting on October 5, and come with asking prices of R$799 ($435 USD) for a basic model and R$1399 ($761 USD) for a system with a 250-gig hard drive and a Kinect peripheral. Compared to what these systems cost in the U.S., the new prices are still quite expensive, but should prove much more affordable than importing systems. Gold memberships, Microsoft points, and games will see reductions somewhere in the neighborhood of R$10-30, depending on the exact product.

While this price drop is good news for Brazilians who are looking to buy or upgrade their 360s, Microsoft might not be motivated entirely by consumer welfare. Over the summer, Sony made big strides in the Latin American market, including offering exclusive bundles and opening a Brazilian PSN Store. Making 360s more readily available in Brazil might just be part of the competition, but hey, when companies compete, everyone wins.

Source: Gamasutra [http://www.gamasutra.com/view/news/36031/Sony_Expands_PSN_Store_To_Brazil.php]

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[teh_Canape]

now, if only Nintendo or Sony did that in Argentina

the hell I'm paying AR$2500 for a PS3

or a Wii

they're both the same price

 

[Belated]

I... I don't see the deal here. They're paying almost twice what we pay in the US. Wouldn't it be cheaper to just import a US model? Why on earth would they charge Brazil more than they do here?

I just don't get it. Where is the good news? Was this meant to be a sarcastic article?

 

[The Random One]

I... I don't see the deal here. They're paying almost twice what we pay in the US. Wouldn't it be cheaper to just import a US model? Why on earth would they charge Brazil more than they do here?

I just don't get it. Where is the good news? Was this meant to be a sarcastic article?

No, it's not cheaper to just import a US model. First off, remember that you have to pay for shipping. International shipping is expensive. International shipping of heavy objects is more expensive. International shipping of sensitive electronic devices that require more than just 'toss it in a box and wait for it to arrive' is even more expensive.

And then... there's the taxes. There's a 60% import tax on the thing. Sixty fucking percent. And then... there's a 25% tax on top of the other tax! This means that your 360 will cost double by the time it gets here.

That only applies if you buy on a US store that delivers to Brazil - good luck finding one, as I never have. (Companies that do deliver to Brazil, such as Amazon, make specific exception for games and electronic media.) If you decide to just buy at a store... well, then you're still paying those two taxes, plus the importer's cut, plus the tax over the importer's cut, plus the retailer's cut, plus the tax over the retailer's cut. Oh, and repeat that last step a few times, since you're rarely buying from the guy who bought from the retailer. (Some importers do sell directly to customers; they're the go-to place if you want cheap prices without jumping through too many hoops.) At least then you don't have to pay any sales taxes.

Then on top of that, compare the average US salary and the average Brazilian salary and the difference becomes even worse. That's the difference between being able to pay it and... not.

This is great news, and since Brazilian Live is anorexic (while Brazilian PSN is just PSN) I hope it'll help the 'box gain some more momentum in here.

 

[AndreyC]

I... I don't see the deal here. They're paying almost twice what we pay in the US. Wouldn't it be cheaper to just import a US model? Why on earth would they charge Brazil more than they do here?

I just don't get it. Where is the good news? Was this meant to be a sarcastic article?

It's not that easy. I'll try to explain: the reason why such things are so incredibly expensive here in Brazil is mostly because of taxes. There is a strict tax policy regarding imported "non-essential" products. Also, when most of the profit doesn't stay in the country (it's the case for multinational corporations like Microsoft), even if the products are manufactured in Brazil, they have to pay high taxes.

Not only the prices are super high, but the income of a standard brazilian citizen is way lower than that of a north american. This makes it so that gaming systems become "luxuous articles", reserved only for the rich, while also incentivating piracy and illegal importing.

For a long time, the PS3 and Xbox 360 sold for approximately R$ 1,999.00 ($ 1,087.00 approximately) and games for R$ 200,00 ($ 108,00 approximately), mostly because of abusive taxes and shipping costs. Things are changing now that Sony, Nintendo and Microsoft are negotiating with the government to bring their technology, services and support to Brazil instead of just exporting games without any official support.

It's important for the government to make sure that corporations install their manufacturing bases in Brazil and employ brazilian citizens, so that their activity is not only a source of profit, but also creates new job opportunities and technology knowledge for Brazil. What the government can offer in return is loosing the tax policy, which can enable cheaper retail prices and attract a larger consumer base.

So yes, the new prices Microsoft managed to get are good news for brazilians, even though still very expensive.

Also, "why not just import an US model"? Well, summing the shipping costs and the taxes you have to pay for customs, it becomes really expensive. That's why the first thing people do when they travel to the US is buying lots of eletronics. But travelling to the US is very expensive as well, so... yeah, we're screwed either way.



TLDR: Being a gamer in Brazil still sucks, but it's slowly starting to suck a little bit less.

 

[fabiosooner]

I... I don't see the deal here. They're paying almost twice what we pay in the US. Wouldn't it be cheaper to just import a US model? Why on earth would they charge Brazil more than they do here?
I just don't get it. Where is the good news? Was this meant to be a sarcastic article?

Just to add to The Random One's explanation: beyond importing fees, there's also what we're used to call 'the Brazil Cost', which stands for the barrage of internal taxes and fees associated with maintaining a company. For example, to hire someone at, say, US$ 1000 a month a company pays *another* US$ 1000 on top to cover worker's benefits and federal taxes. Also, Brazil is the #1 country in the world in red tape complexity - I'm serious, this has been measured; nowhere else companies spend so much time and money just to keep records straight. So if you want to maintain a legal game store, you'll need to add everything up - importing fees, administrative resources and the Brazil Cost - and even if you're feeling charitable you'll need to sell a US$ 250 PS3 model for around US$ 600-700 just to keep the store running, and around US$ 800 to make any kind of worthy profit for your trouble. In that context, being able to sell an equivalent product for US$ 435 is a HUGE deal for the store and the consumer - and of course for Microsoft itself.

Also, most people won't care about importing because they don't know English, and even when they do, you have very limited pay options when importing stuff. It's not just a matter of paying about the same as importing, but being able to buy it in installments. Considering the average wage in here, it's a key factor to get the product in the consumer's hands. Most stores that import stuff are not able to offer much in that field since they need to pay their international orders either upfront or in a very short window of time (30 to 60 days at best). Now they can offer deals such as selling that US$ 435 product in as much as 10 installments, which helps a great deal.

 

[fabiosooner]

now, if only Nintendo or Sony did that in Argentina
the hell I'm paying AR$2500 for a PS3
or a Wii
they're both the same price

I visited Buenos Aires last year and you guys at least have the 'benefit' of a slightly less outrageous importing policy and a better sense of how these things work.

IIRC, imported games were about 20% cheaper - got Mass Effect 2 in a store near Florida street (I know, I know, that's where all those damn loud and impolite Brazilians always go for shopping. In my defense, I needed some clothes. And I swear I don't speak to the whole barrio when I want to say something, no matter how happy and relaxed I am).

Also, I distinctly remember visiting the local Sony Store about a week after the US release of Playstation Move and finding the thing for AR$800 - still expensive, but about half the official price in here. Oh, and it took about SIX MONTHS for the damn thing to be officially released in here. It seems Sony Argentina at least know its business: no matter how expensive a product is, if you'll take that much time to put the product in the market these days, you're not going to sell it, even for the richest of the rich - they'll just import it or buy it abroad when they take a vacation.

 

[darthzew]

Thank God. I lived in Brazil for fourteen years and literally the only option for most people was piracy. You could either spend about a hundred dollars for a new game with a clean conscience or about fifty cents and feel bad.

I never pirated because I could get my stuff from the US, but every little bit REALLY helps down there.

EDIT: By from the US, I mean I would buy it in the United States and bring it with me in my luggage. It's not actually importing.

 

[teh_Canape]

now, if only Nintendo or Sony did that in Argentina
the hell I'm paying AR$2500 for a PS3
or a Wii
they're both the same price

I visited Buenos Aires last year and you guys at least have the 'benefit' of a slightly less outrageous importing policy and a better sense of how these things work.

IIRC, imported games were about 20% cheaper - got Mass Effect 2 in a store near Florida street (I know, I know, that's where all those damn loud and impolite Brazilians always go for shopping. In my defense, I needed some clothes. And I swear I don't speak to the whole barrio when I want to say something, no matter how happy and relaxed I am).

Also, I distinctly remember visiting the local Sony Store about a week after the US release of Playstation Move and finding the thing for AR$800 - still expensive, but about half the official price in here. Oh, and it took about SIX MONTHS for the damn thing to be officially released in here. It seems Sony Argentina at least know its business: no matter how expensive a product is, if you'll take that much time to put the product in the market these days, you're not going to sell it, even for the richest of the rich - they'll just import it or buy it abroad when they take a vacation.

that's the thing

you went to Buenos Aires, the capital city of the country, all tech stuff is cheaper there

I'm from one of the least known cities from the country XD

and again, with those prices, it's no wonder to me that piracy as well as bootleg systems are so successful and popular here =P

 

[Diegolomac]

Actually, there's another thing happening here in Brazil: a commotion called "just price", where all the consumers are mobilizing to try to get a lower price on imported products. I know this wasn't the only cause, but it helped. To anyone interested, here's an article about it (in portuguese, but I'm sure you guys know where to find an online translator): http://www.brasil247.com.br/pt/247/gamesapp/16558/Pre%C3%A7o-justo-tamb%C3%A9m-no-Xbox-360-por-R$-799.htm

 

[gabe12301]

Knowing these forums, people will say that microsoft is evil for doing such a thing and this is part of their plans to take over the world though kinectmotism.

 

[twm1709]

now, if only Nintendo or Sony did that in Argentina

the hell I'm paying AR$2500 for a PS3

or a Wii

they're both the same price

Yeah, I had to buy my ps3 on a trip to US. Paying over 360 pesos (around 85 dollars for those not argentinian) for these games is a pain. And in Mar del Plata it's even worse

 

[twm1709]

now, if only Nintendo or Sony did that in Argentina
the hell I'm paying AR$2500 for a PS3
or a Wii
they're both the same price

I visited Buenos Aires last year and you guys at least have the 'benefit' of a slightly less outrageous importing policy and a better sense of how these things work.

IIRC, imported games were about 20% cheaper - got Mass Effect 2 in a store near Florida street (I know, I know, that's where all those damn loud and impolite Brazilians always go for shopping. In my defense, I needed some clothes. And I swear I don't speak to the whole barrio when I want to say something, no matter how happy and relaxed I am).

Also, I distinctly remember visiting the local Sony Store about a week after the US release of Playstation Move and finding the thing for AR$800 - still expensive, but about half the official price in here. Oh, and it took about SIX MONTHS for the damn thing to be officially released in here. It seems Sony Argentina at least know its business: no matter how expensive a product is, if you'll take that much time to put the product in the market these days, you're not going to sell it, even for the richest of the rich - they'll just import it or buy it abroad when they take a vacation.

that's the thing

you went to Buenos Aires, the capital city of the country, all tech stuff is cheaper there

I'm from one of the least known cities from the country XD

and again, with those prices, it's no wonder to me that piracy as well as bootleg systems are so successful and popular here =P

lol, finding original Wii and X360 games outside of BA is almost impossible.

 

[StrixMaxima]

Looks like the companies are finally looking down here more seriously.

Of course, the reasons are greedy: increased piracy (especially in the XBox and Wii), lower profits on the bigger markets, blooming local economy.

They could have a local (or at least South American) console a long, long time ago, but since they don't understand the local market and assume, erroneously, that Brazilians are all pirates and criminals. They have simply forgotten about us.

Usually, a new console costs here around 600 - 800 US$. If you get a good price, from a dodgy supplier. If you want to buy in game shops (there are just a handful of them, located mainly in São Paulo, Rio and Southern states), truly legit, expect more than 1000 US$.

Add to that the difficulty of having a local Live or PSN account, very limited title offer (and, abusive prices, around 100 US$) for games, and you have our local gaming community.

I cannot but smirk a bit when I see Americans complaining about their market and stores, like Gamestop. I must import all the games I want, and pray to evade the extortive customs tax in the Post Office. I pay ridiculous amounts for even the simplest peripheral. If something breaks, tough luck: you have no legal rights to any kind of warranty.

It is getting better, but it's far from 'decent'. At least we are not on ludicrous speed, anymore.

 

[Grahav]

I... I don't see the deal here. They're paying almost twice what we pay in the US. Wouldn't it be cheaper to just import a US model? Why on earth would they charge Brazil more than they do here?

I just don't get it. Where is the good news? Was this meant to be a sarcastic article?

I found really funny how people get surprised with the prices here. I find it also really sad since I live here and the supertaxation doesn't translate in better public services and life quality. Mainly because corruption here is fucking BIG. Seriously the politicians do things
which would make impalling to be seen a light punishment to do with them.

Looks like the companies are finally looking down here more seriously.

Of course, the reasons are greedy: increased piracy (especially in the XBox and Wii), lower profits on the bigger markets, blooming local economy.

They could have a local (or at least South American) console a long, long time ago, but since they don't understand the local market and assume, erroneously, that Brazilians are all pirates and criminals. They have simply forgotten about us.

Usually, a new console costs here around 600 - 800 US$. If you get a good price, from a dodgy supplier. If you want to buy in game shops (there are just a handful of them, located mainly in São Paulo, Rio and Southern states), truly legit, expect more than 1000 US$.

Add to that the difficulty of having a local Live or PSN account, very limited title offer (and, abusive prices, around 100 US$) for games, and you have our local gaming community.

I cannot but smirk a bit when I see Americans complaining about their market and stores, like Gamestop. I must import all the games I want, and pray to evade the extortive customs tax in the Post Office. I pay ridiculous amounts for even the simplest peripheral. If something breaks, tough luck: you have no legal rights to any kind of warranty.

It is getting better, but it's far from 'decent'. At least we are not on ludicrous speed, anymore.

Hey, good to see brazilians here in the escapist.