Because TecToy manufactured the Sega Master System, Genesis and Dreamcast (not sure about the Saturn) locally (and they were the first to manufacture a video game console locally). Also some other company called Gradiente manufactured the Nintendo 64 locally too.
Between 80s and 90s, Brazil was a very closed market and it was almost impossible for companies such as Atari to sell consoles there.
So some local companies started to develop their own non-authorized-clones, like Milmar producing the Dactar console, which was a blatan copy of the Atari 2600 with some "improvements" like the joy stick with extra buttons..
Polyvox/Gradiente had an official joint venture with Atari while Philips made and sold its consoles locally. None of this would have been possible if the reserved market had included videogames. Note that it was common for the policy to extend its reach to areas where it shouldn't apply, but that didn't happen in this case.