Xbox Physical Games will no longer be manufactured and distributed in BRAZIL

[Gediminas]

According to what some Brazilian distributors indicate, Xbox games will no longer be manufactured and distributed in Brazil.
The information was confirmed by the NERDIZMO team, through stores that work with Solutions 2 Go and Warner.

Some of the next games to be released, such as Hogwarts Legacy, Like a Dragon: Ishin! and Resident Evil 4, will already be the first that will not receive a disc version for Xbox in the national market.

Even the game was only put up for pre-order for PlayStation only, for this reason.

Apparently, the reasons for this lie in the low sales of games on physical media across the market, on the side of retailers and suppliers.

Jogos de Xbox não serão mais fabricados e distribuídos no Brasil - Nerdizmo

Segundo o que indica alguns distribuidores brasileiros, os jogos de Xbox não serão mais fabricados e distribuídos no Brasil.

nerdizmo.uai.com.br

 

[ethomaz]

It makes sense for Xbox because the volume of sales are not enough to sustain that model here.

While that PS5 continue selling physical because you pay close to half the price with promotions at launch.

I only have PS5 DE now and I paid in Ragnarok R$349 while I found several deals to preorder it physical before launch at R$180-240.

Going physical you can buy almost 2 games at price of 1 digital here even at launch.

 

[anonpuffs]

It makes sense for Xbox because the volume of sales are not enough to sustain that model here.

While that PS5 continue selling physical because you pay close to half the price with promotions at launch.

I only have PS5 DE now and I paid in Ragnarok R$349 while I found several deals to preorder it physical before launch at R$180-240.

Going physical you can buy almost 2 games at price of 1 digital here even at launch.

Why is it so cheap physical? That's like $40-50, don't yall have import tarriffs that are supposed to make it expensive?

 

[peter42O]

Makes sense. Majority of Xbox gamers including myself go digital more than physical and in regions where physical sales are minimal at best, not much point in publishers paying for manufacturing, distribution and retailer fees if they don't have to.

 

[adamsapple]

Next up, UK. 80~85% of sales are digital on Xbox there.

The all-digital future is arriving soon.

 

[Satoru]

Very consumer friendly, no doubt about it.

 

[ethomaz]

Why is it so cheap physical? That's like $40-50, don't yall have import tarriffs that are supposed to make it expensive?

The MSRP price is the same for both but retailers give big deals so physical is always cheaper.

Example preorder in October:
See the PS4 physical can be at R$204-239 and the PS5 physical R$259.



At launch there are some bundles like Ragnarok PS4 + DuaShock at R$392... both costs $289 MSPR here.

 

[anonpuffs]

Why would they give such big discounts? Are retailers having a hard time getting customers? Too much stock/too expensive for most people?

 

[Bodycount611]

Next up, UK. 80~85% of sales are digital on Xbox there.

The all-digital future is arriving soon.

For Xbox.

Really, this means nothing for Nintendo or Sony.

 

[ethomaz]

@anonpuffs

I forget to say the import taxes for games are lower than 60% typical import tax.
PC games import taxes is even lower the MSRP here is R$199-239.

Brasil launch prices:

PC games: R$199-239 (I believe CoD last year was the firt R$239)
PS5 games: R$349
PS4 games: R$289

Why would they give such big discounts? Are retailers having a hard time getting customers? Too much stock/too expensive for most people?

I believe the retailer margins here are around 40% so they can drop lower than that if they wish.
10% alamost all retailer do for single payments (1x) but some even reach 20% or more off.
In split payments (2x, 3x, etc) the discounts are lower.

Old physical games can reach as low as R$20-40.

 

[adamsapple]

For Xbox.

Really, this means nothing for Nintendo or Sony.

The industry has been trending towards that future no matter how much we kick and scream.

Over 94% of all video game sales in 2022 were reportedly digital

Some companies have reported a majority of video game sales in 2022 were done digitally, rather than through physical releases. Based on data shown (via Games Industry), it appears this is an industry…

nichegamer.com

It also makes more money for the publishers as they don't have to print, ship bulks of games as well.

 

[Swift_Star]

De

The industry has been trending towards that future no matter how much we kick and scream.

Over 94% of all video game sales in 2022 were reportedly digital

Some companies have reported a majority of video game sales in 2022 were done digitally, rather than through physical releases. Based on data shown (via Games Industry), it appears this is an industry…

nichegamer.com

It also makes more money for the publishers as they don't have to print, ship bulks of games as well.

Doesn’t mean we have to like it.

 

[Bodycount611]

The industry has been trending towards that future no matter how much we kick and scream.

Over 94% of all video game sales in 2022 were reportedly digital

Some companies have reported a majority of video game sales in 2022 were done digitally, rather than through physical releases. Based on data shown (via Games Industry), it appears this is an industry…

nichegamer.com

It also makes more money for the publishers as they don't have to print, ship bulks of games as well.

the latest FY report from Sony has digital at only 60%.

Nintendo Is probably significantly lower. Much lower.

And both still have healthy collector's markets, LRG, etc.

The reality is, xbox has abandoned the Brazilian market due to extremely low sales and the cannibalization of physical on xbox is accelerating due to gamepass in the region.

the report says MS may not even bother localizing or translating games for the Brazilian market moving forward, so its more just that brazil has rejected xbox series. The first market of many to come.

Bad news.

 

[ethomaz]

the latest FY report from Sony has digital at only 60%.

Nintendo Is probably significantly lower. Much lower.

And both still have healthy collector's markets, LRG, etc.

The reality is, xbox has abandoned the Brazilian market due to extremely low sales and the cannibalization of physical on xbox is accelerating due to gamepass in the region.

the report says MS may not even bother localizing or translating games for the Brazilian market moving forward, so its more just that brazil has rejected xbox series. The first market of many to come.

Bad news.

Exactly that.

It is not that Brazil regected the Series but they rejected games on Series (again Gamepass) and physical is dead for Xbox... so there is no point in continue the distribuition.
But that is a trend not only see in Brazil... others countries including US are sawing the same... the difference is that Brazil have way lower amount of sales than US so the "phase out" happens early.

 

[KnittedKnight]

Sad to see physical die a slow death, anywhere it happens.

 

[Bodycount611]

i always thought brazil was one of the stronger markets for xbox. to see that it's actually the first market they call it quits on, is alarming to say the least.

now that the first domino has fallen, i see a phase out coming for South America, then maybe australia, and finally Europe.

We don't know the extent of their business in asia - Almost zero in China and S.E.A, and they don't bother localizing or translating everything for Korea or Japan, so they really do almost no business in Asia as far as i can tell.


PlayAsia sells more Vita games than Xbox, lol.

I guess Asia's physical disc phase out will happen soon, if it hasn't already.

especially with Series X selling almost no consoles, the idea of Xbox physical discs is rather absurd. Especially with how no one collects for xbox, the games usually require online/ are MP-only, service games, and just are genuinely worthless to press into disc.

all in all, the lack of a physical shelf space presence is going to hurt them. It's going to make xbox feel cheap, low-quality, and generally just hurt brand awareness. Hardcore gamers won't take xbox seriously. Consumers are going to be surrounded by red and blue cases, and the green box will just fade into a distant memory.

 

[ethomaz]

i always thought brazil was one of the stronger markets for xbox. to see that it's actually the first market they call it quits on, is alarming to say the least.

now that the first domino has fallen, i see a phase out coming for South America, then maybe australia, and finally Europe.

We don't know the extent of their business in asia - Almost zero in China and S.E.A, and they don't bother localizing or translating everything for Korea or Japan, so they really do almost no business in Asia as far as i can tell.

View attachment 397
PlayAsia sells more Vita games than Xbox, lol.

I guess Asia's physical disc phase out will happen soon, if it hasn't already.

especially with Series X selling almost no consoles, the idea of Xbox physical discs is rather absurd. Especially with how no one collects for xbox, the games usually require online/ are MP-only, service games, and just are genuinely worthless to press into disc.

It was very strong with 360... I believe it sold more than PS3 here.
But remember PS2 evern after 360 and PS3 launch sold more than both

PS4 was the main console here but Xbox One was very cheaper (like half the price of PS4) so the sales were very close.

With PS5 I think it become more one sided (both Series X and PS5 are the same price).

 

[KiryuRealty]

According to what some Brazilian distributors indicate, Xbox games will no longer be manufactured and distributed in Brazil.
The information was confirmed by the NERDIZMO team, through stores that work with Solutions 2 Go and Warner.

Some of the next games to be released, such as Hogwarts Legacy, Like a Dragon: Ishin! and Resident Evil 4, will already be the first that will not receive a disc version for Xbox in the national market.

Even the game was only put up for pre-order for PlayStation only, for this reason.

Apparently, the reasons for this lie in the low sales of games on physical media across the market, on the side of retailers and suppliers.

Jogos de Xbox não serão mais fabricados e distribuídos no Brasil - Nerdizmo

Segundo o que indica alguns distribuidores brasileiros, os jogos de Xbox não serão mais fabricados e distribuídos no Brasil.

nerdizmo.uai.com.br

Boy, if MS has lost the Brazilian market, thats hundreds of dollars a year lost!

 

[adamsapple]

De

Doesn’t mean we have to like it.

I don't like it either, I always buy physical-enabled consoles.

But we can all see where the trends are going.

 

[Bodycount611]

I don't like it either, I always buy physical-enabled consoles.

But we can all see where the trends are going.

*on Xbox.