Why are video games still so expensive in Brazil?

Since 2019, when President Jair Bolsonaro (PL) took office in Brazil, taxes on video games have been reduced four times. However, the reality of gaming is not a price drop, at least in the perception of people connected to this world.

A report by UOL’s Tilt portal revealed this reality and sought to understand a little more about the thoughts of players and professionals in the region. In this context, it is emphasized that the prices of games, consoles and other gadgets have actually increased rather than decreased. The reasons include the rise of the dollar, the shortage crisis of products such as PS5 and chips and the negative impact of the Covid-19 pandemic.

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Despite this, as already mentioned, on games, accessories, etc. However, it is felt that this measure was not enough to stop the rise in prices.

“I didn’t feel a drop in value, but an increase, because the games industry had other costs. For us here in Brazil, it catches on a lot,” YouTuber Skorpion Gamer tells Tilt.

In addition, the rising prices of more advanced consoles and the quoted shortage of products have led to a return to the past. Interest in the PS4 and Xbox One has increased, at the expense of the next generation of consoles. Another issue raised is the second-hand device market, where tax incentives will ultimately not be affected.

According to economist Yvonne Gaillard, the video game tax measure can be analyzed as a strategy aimed at the 2022 election.

“Those who benefit from this type of game are the young population, in which Bolsonaro’s government does not have good access. So, it is clear that this is an election event to get votes,” Gaylar said.

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The last tax cut on video games in Brazil took place on July 1 of this year. The measure was aimed at reducing the duty on parts and accessories of games and consoles from 16% to 12%, in addition to zeroing out the duty on screens connected to video games.

Another cut in gaming tax implemented by the government in August 2021 had significant consequences. At that time, in addition to the exchange rate falling from 30% to 20%, the IPI (tax on industrial products) was also affected. However, the reality of video games in Brazil is still one of high product prices.

Information via Tilt account.

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