... Mas a Culpa dos R$ 500 Não é Só da Nintendo

Summary

This video delves into the complexities of high video game prices in Brazil, particularly the Nintendo Switch 2. While the Nintendo company is criticized for its pricing strategy, the video shifts focus to Brazil’s import tax system, which significantly inflates costs. The narrator explores how import taxes, including the IPI, PIS, Cofins, and ICMS, along with additional logistical and marketing expenses, push prices to extreme levels. Despite this, the video suggests that the Nintendo pricing strategy is not as unreasonable as it seems. The solution lies in changing Brazil's tax policies to lower prices and support the gaming industry.

Takeaways

• 😀 The Nintendo Switch 2's high prices are not solely due to the company's actions; they are heavily influenced by Brazil's import tax system.
• 😀 The high cost of gaming products in Brazil, like the Nintendo Switch 2 games priced at R$ 500, is a result of outdated and complicated import taxation inherited from the military dictatorship era.
• 😀 While Nintendo is partly to blame for high prices, it’s essential to understand the fiscal landscape and the impact of taxes on the final price of games in Brazil.
• 😀 Brazilian import taxes on video games are excessive, with layers of taxes on both the original cost and shipping, resulting in an exponential increase in price.
• 😀 The system is inefficient, as the taxes that were meant to foster a national gaming industry have instead created barriers, making games more expensive and hindering the local industry.
• 😀 The Brazilian tax regime for video games is a legacy of the 1980s military dictatorship, which aimed to protect local industry but ultimately failed to develop a strong gaming market.
• 😀 Some recent presidents, like Bolsonaro, have attempted to reduce certain taxes (e.g., IPI on hardware), but software taxes remain unchanged, which still impacts game prices.
• 😀 Using a simulator provided by Brazil's Receita Federal, the video outlines how taxes like IPI, PIS, Cofins, and ICMS significantly inflate the cost of imported games.
• 😀 Despite Nintendo potentially subsidizing the sale of games in Brazil, the excessive taxes still result in a final retail price that is higher than in other markets.
• 😀 Solutions to the pricing issue could include local game manufacturing or focusing on digital-only sales to reduce taxes, but these options would require significant changes to the current structure.
• 😀 To change the situation, consumers and the gaming community must apply pressure on Brazilian politicians, not just the companies, to push for tax reforms that could make gaming more affordable.

Q & A

Why are Nintendo Switch 2 games so expensive in Brazil?

The high prices of Nintendo Switch 2 games in Brazil are primarily due to the excessive taxes imposed on imported video games. These taxes, such as ICMS, IPI, PIS, and Cofins, significantly inflate the price of games by as much as 97.5%. Additionally, the lack of local manufacturing by Nintendo contributes to these high costs.

What role does the Brazilian tax system play in the high price of video games?

Brazil's tax system plays a crucial role in increasing the cost of imported video games. The taxes applied at every step of the import process—like the import tax, industrial products tax (IPI), PIS, Cofins, and ICMS—lead to a cumulative increase in the final retail price of the games.

How did Brazil’s historical tax policies impact the video game industry?

Brazil’s historical tax policies, particularly during the military dictatorship, were designed to protect a nascent national video game industry by imposing high tariffs on imported goods. These policies continued into the neoliberal era of the 1990s and have perpetuated high prices for video games even though the national industry never fully developed.

Why do other companies like Sony and Microsoft have lower prices for their games in Brazil compared to Nintendo?

Sony and Microsoft can afford to sell their games at lower prices because they have local manufacturing or digital-only options, which reduce taxes and distribution costs. Nintendo, on the other hand, does not manufacture games in Brazil, making its games subject to the full range of import taxes and distribution fees.

Could Nintendo reduce the prices of its games in Brazil?

Yes, Nintendo could reduce its game prices by manufacturing games locally, as Sony does, or by shifting to a digital-only distribution model, which would incur fewer taxes. However, Nintendo currently does not pursue these options.

What specific taxes are applied to imported video games in Brazil?

Imported video games in Brazil are subject to several taxes, including the import tax (18%), IPI (20%), PIS (2.1%), Cofins (9.7%), and ICMS (25% in São Paulo), among others. These taxes cumulatively increase the cost of a game by a substantial amount.

How does the tax cascade system work in Brazil’s video game taxation?

Brazil’s tax system is a cascade, meaning taxes are applied to the base price of the product, which already includes previous taxes. For example, after applying the import tax, the IPI is calculated based on the new price, which includes the import tax. This compounding effect leads to a significant increase in the final price of imported goods.

Why doesn't the Brazilian government lower the taxes on video games, considering the negative impact on the industry?

The Brazilian government maintains high taxes on video games despite the negative impact on the industry, as these taxes are part of a broader economic strategy and have been politically entrenched. Lowering taxes could potentially reduce government revenue, though it might also stimulate more sales and lead to higher overall tax collection.

What can consumers do to influence the price of video games in Brazil?

Consumers can apply pressure on both Nintendo and Brazilian lawmakers to address the high taxes on video games. This can be done through petitions, activism, and raising awareness about the negative impact of these taxes on the gaming community. Political pressure could lead to legislative changes that reduce the tax burden on imports.

How did the tax policies on video games originate in Brazil?

The tax policies on video games in Brazil originated during the military dictatorship in the 1980s, when the government implemented import restrictions to protect a fledgling national gaming industry. These policies were maintained through subsequent decades, even though the intended national industry never fully developed.