Acquiring a video game in Brazil historically presents high costs, although taxation is frequently cited as a main factor, it does not constitute the entirety of the final cost.
This debate gained prominence starting in the 2000s. An example of this was the official launch of the Xbox 360 in Brazil in 2006, with a price of R$ 3 thousand, contrasting with the US$ 400 practiced in the United States. Subsequently, in 2013, the PlayStation 4 was introduced at the price of R$ 4 thousand, consolidating the perception of the so-called 'Brazil price.'
Between 2019 and 2021, the federal government implemented several reductions in the IPI rate intended for video games. The rate applied to consoles, which was originally 50%, was reduced to 30%, and games with integrated screens had their tax zeroed out.
These changes resulted in certain price drops. For example, the PS5 became R$ 300 more affordable after one of the cuts, while the Xbox Series X and Series S registered reductions of R$ 400 and R$ 200, respectively.
However, IPI is not the only tax involved in pricing. Other charges, such as Import Tax, ICMS, PIS, and Cofins, also contribute to the formation of prices, and they can be applied cumulatively.
In addition to taxes, the dollar exchange rate exerts a large impact on the Brazilian market. The appreciation of the American currency raises the costs of imported consoles, components, and games, and currency fluctuations hinder the implementation of rapid reductions in values.
Marco Antonio Martins Rocha, a professor at Unicamp, points out that video games function as luxury goods in the country due to the correlation between their price and the population's income. He states that since video games in Brazil are aimed at the consumption of a high-income population, minimal changes in taxes have little effect on consumption.
According to the economist's analysis, the simple reduction of one tax does not always guarantee that the entire benefit reaches the final consumer. He observes that such a decrease tends to be absorbed by retailers and importers in the national market, making the discount perceived by the customer insignificant.
Thus, the high cost of video games in Brazil cannot be attributed solely to taxes; the exchange rate, importation, the tax structure, and purchasing power are crucial elements in explaining the persistence of high prices even after successive tax exemptions. The original article was published in Olhar Digital.