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Nintendo is pulling out from the Brazilian gaming market, according to a report from UOL Games. The company will not distribute any additional games, consoles, or handhelds in the country going forward.

Bill van Zyll, director for Nintendo of America’s Latin America operations, said there are various challenges in the way such as taxes.

It’s currently unclear what will happen with the Brazilian 3DS eShop as well as those who purchased games on the store.

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In honor of the official 3DS launch of Super Smash Bros. Brazilians will be able to smash their way into some prizes in Sao Paolo on October 3.

The tournament will consist of two different entry options:

For Fun

– Winners could receive Nintendo swag

For Glory

– Winners could receive a Nintendo Wii U

All participants must bring their own 3DS, additional tools will be provided.

Go Brazil!

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The Wii U will officially be making its way to Brazil later this month, though the price of entry will be very high.

Consumers who wish to purchase the system will need to fork over R$ 1899. That amounts to roughly $825 in USD. Games are expected to cost somewhere between R$179 and R$199.

The Wii U will launch in Brazil on November 26. It’ll come with New Super Mario Bros. and New Super Luigi U.

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In a recent interview with Bloomberg, Nintendo of America president Reggie Fils-Aime said “Brazil has huge potential.”

But there are a few problems Nintendo is facing. For one thing, the Big N’s hardware typically goes for over $1,000 in Brazil, a significant price hike that plagues other technology companies as well.

This could be remedied, at least somewhat, if Nintendo were to manufacture some of its hardware directly in Brazil. While Reggie says Nintendo has considered doing so “a number of times”, the country’s manufacturing industry may not be up to the task due to a lack of technical capability. Nintendo has concerns about piracy in Brazil as well.

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