The recent announcement of Switch 2 game prices in Brazil \u2014 as Mario Kart World<\/em> for R$ 499.90 \u2014 reignited heated debates about Nintendo's pricing policy. But this view simplifies a much deeper problem. Let us explain in detail.<\/p>\n\n\n\n Price localization means adapting the price of a product or service for different markets, taking into account factors such as purchasing power, local taxes and competition.<\/p>\n\n\n\n In theory, it seems like a fair solution. Problem:<\/strong> Example:<\/strong> Explanation:<\/strong> Problem:<\/strong> Example:<\/strong> Impact:<\/strong> Problem:<\/strong> Real example:<\/strong> Impact:<\/strong> Problem:<\/strong> Impact:<\/strong> Problem:<\/strong> Impact:<\/strong> Key phrase:<\/strong><\/p>\n\n\n\n Nintendo doesn't just sell games \u2014 it sells the value of being part of Nintendo culture.<\/p>\n<\/blockquote>\n\n\n\n Nintendo is extremely conservative. Lowering prices in Brazil could:<\/p>\n\n\n\n I.e: It's not worth it<\/strong> for Nintendo's strategy.<\/p>\n\n\n\n The real problem is:<\/p>\n\n\n\n Demanding that Nintendo solve Brazil's structural problems is like blaming the thermometer for the fever.<\/p>\n\n\n\n The real challenge is to build a healthy economic environment, where Brazilians' purchasing power is not eroded daily by poor fiscal and monetary management.<\/p>\n\n\n\n Subscribe to our Economic Radar newsletter<\/strong> and receive critical analysis on inflation, currency and the market directly to your email.<\/p>\n\n\n\n <\/p>","protected":false},"excerpt":{"rendered":" A Nintendo n\u00e3o recusa localiza\u00e7\u00e3o de pre\u00e7os por gan\u00e2ncia, mas para proteger sua estrat\u00e9gia global. Este artigo analisa os riscos da localiza\u00e7\u00e3o, os impactos da infla\u00e7\u00e3o e mostra que o verdadeiro problema \u00e9 o poder de compra destru\u00eddo pela m\u00e1 gest\u00e3o econ\u00f4mica.<\/p>","protected":false},"author":1,"featured_media":602,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"googlesitekit_rrm_CAow55rbCw:productID":"","footnotes":""},"categories":[4],"tags":[486,487,15,371,483,488,73,482,484,481,339,485],"class_list":["post-601","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-analise-economica","tag-ambiente-de-negocios","tag-arbitragem-internacional","tag-economia-brasileira","tag-estado-e-moeda","tag-estrategia-empresarial","tag-gestao-fiscal","tag-inflacao","tag-localizacao-de-precos","tag-mercado-de-games","tag-nintendo","tag-poder-de-compra","tag-risco-cambial"],"_links":{"self":[{"href":"https:\/\/poderemercado.com.br\/en\/wp-json\/wp\/v2\/posts\/601","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/poderemercado.com.br\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/poderemercado.com.br\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/poderemercado.com.br\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/poderemercado.com.br\/en\/wp-json\/wp\/v2\/comments?post=601"}],"version-history":[{"count":0,"href":"https:\/\/poderemercado.com.br\/en\/wp-json\/wp\/v2\/posts\/601\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/poderemercado.com.br\/en\/wp-json\/wp\/v2\/media\/602"}],"wp:attachment":[{"href":"https:\/\/poderemercado.com.br\/en\/wp-json\/wp\/v2\/media?parent=601"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/poderemercado.com.br\/en\/wp-json\/wp\/v2\/categories?post=601"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/poderemercado.com.br\/en\/wp-json\/wp\/v2\/tags?post=601"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}
Many YouTubers and commentators accuse the company of \u201cgreed\u201d for not adapting its prices to the Brazilian reality.<\/p>\n\n\n\n
The truth is that the big obstacle is not Nintendo \u2014 it is the fragility of the real, chronic inflation and the global risks involved in the so-called price location<\/strong>.<\/p>\n\n\n\n
\n\n\n\nWhat is Price Localization?<\/h2>\n\n\n\n
In practice, it brings big risks<\/strong> for companies.<\/p>\n\n\n\n
\n\n\n\n1. Loss of Global Revenue<\/h2>\n\n\n\n
Lowering prices in weak currency countries reduces revenue in those markets.<\/p>\n\n\n\n
If a game costs US$$ 70 in the US and R$$ 250 in Brazil, with the price and costs involved, the profit margin in Brazil could be negligible.
Even if more units are sold, the volume may not compensate for the unit loss.<\/p>\n\n\n\n
Games have high fixed development costs.
Replicating digitally is cheap, but the support structure, translation, marketing and licensing needs to be paid for somehow.<\/p>\n\n\n\n
\n\n\n\n2. International Arbitration Risk<\/h2>\n\n\n\n
When prices differ greatly between countries, people use VPNs, alternative accounts, or the gray market to buy where it is cheaper and resell or use it in expensive markets.<\/p>\n\n\n\n
Steam has suffered years of arbitration, forcing Valve to limit international purchases.<\/p>\n\n\n\n
This not only destroys the local market in the rich country, but also forces the company to review its global strategy \u2014 losing even more revenue.<\/p>\n\n\n\n
\n\n\n\n3. Inflation and Exchange Rate Instability<\/h2>\n\n\n\n
In countries like Brazil, even if the company localizes today, in a few months the real may depreciate \u2014 and localized prices become outdated.<\/p>\n\n\n\n
Many companies have had to readjust prices in Brazil in recent years due to double-digit inflation.<\/p>\n\n\n\n
It requires constant adjustments, which causes wear and tear on the brand and frustration among consumers.<\/p>\n\n\n\n
\n\n\n\n4. Operational and Tax Complexity<\/h2>\n\n\n\n
The business environment in Brazil is extremely bureaucratic and taxed.<\/p>\n\n\n\n
Even if prices are localized, the company may have to deal with very high taxes, making it difficult to maintain the promised low prices.<\/p>\n\n\n\n
\n\n\n\n5. Brand Image and Value Strategy<\/h2>\n\n\n\n
Companies like Nintendo don't just sell games. They sell tradition, prestige and exclusivity.<\/p>\n\n\n\n
Lowering prices too much can devalue your brand \u2014 especially in high-value markets like the US, Europe and Japan.<\/p>\n\n\n\n\n
\n\n\n\nReal Cases: Price Localization<\/h1>\n\n\n\n
\ud83d\udfe2 Cases where it worked:<\/h2>\n\n\n\n
Steam (Valve)<\/h3>\n\n\n\n
\n
Xbox Game Pass (Microsoft)<\/h3>\n\n\n\n
\n
\n\n\n\n\ud83d\udd34 Cases Where It Went Wrong:<\/h2>\n\n\n\n
Netflix in Asian markets<\/h3>\n\n\n\n
\n
Epic Games Store<\/h3>\n\n\n\n
\n
\n\n\n\nWhat about Nintendo?<\/h1>\n\n\n\n
Prefer to sell less, but preserve your margin and symbolic value.<\/p>\n\n\n\n\n
\n\n\n\nConclusion: The Problem Is Not Nintendo<\/h1>\n\n\n\n
\n
\n\n\n\n\ud83d\udce9 Do you want to understand how the State destroys your purchasing power?<\/h1>\n\n\n\n