I don't have facts, and I know this is very argumentative, and by all means correct me, but I don't believe for one second that Brazil has worse piracy than Asia. Piracy is so rampant in Hong Kong, for instance, that it either has sunk or is sinking their entire movie industry. As for games, I'd say it's about the same.
Still, the piracy must be bad, and that's the entire point--it doesn't matter if it is worse or not--it's apparently bad enough that this distributor can't handle it. That's pretty sad. I was in Brail (as they spell it) a few years ago, and had a few conversations about games with some natives there. Of course we talked about the Black Market and I did find that the systems were quite expensive there, but mostly because the economy is so bad there--people just don't have the cash to buy things, especially when their system of choice costs more, proportionally, in reals than in $US.
I will say I could of course be wrong about the piracy there, but it seems far-fetched. More likely, the piracy was just too much for the distributor, as I said, no matter whose country's is worse.
Sample conversation that just came to me based on the fact that I might've just started an argument that I'll lose but was really just yapping:
Brazilian: "Our piracy is so bad, our games economy collapsed!"
Asian: "Really? I didn't know it was that bad. Ours is the WORST."
B: "Doesn't compare to ours."
A: "Shoot, fool, we've got the worst piracy ever! Our economy has gone bust!"
B: [expletive]
A: [expletive]
[fisticuffs]
End.