Thursday, April 20, 2006

Imports and Taxes

According to this report from Abragames (Brazilian Association of Game Developers), these are the numbers for import taxes over game related products in Brazil:

Item - Tax (in %)
Console Hardware - 80%
Handheld Hardware - 60%
CD-ROM - 33%
Cartridges - 50%

This is just too high, and certainly helps to bring the piracy rates up to ludicrous 89% (PC Market) or 97% (PS2, XboX).

Although some Brazilian developers do a very good job selling their games abroad (in this case, EUA, Europe and Asia), the industry could benefit as whole from a reasonable internal market. I do realize that the country has problems much more serious than this one, but a market where a Nintendo DS costs something between U$ 312 and U$ 426 is not particularly welcoming players and local developers.

I don't usually post notes on market issues, but this is a point that particularly bothers me.

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Copyright, Chico Queiroz