Not anymore, I can find PS5 easily and I live in a small city. Also, you can go in any big online magazines and purchase one right now. Sony left Brazil. SIE, Sony Pictures and Music didn't. Brazil was PS4 8th market and still very relevant.
The answer to this news is the Series S. Brazil had a market for Xbox physical games until very recently. I have a XSX and bought almost all my games on physical media. Not only blockbusters like Elden Ding, Lego, Cyberpunk or Guardians of The Galaxy, but also games like Lost Judgment, Tales of Arise, Mafia, etc. I realized this trend when next-gen games started to release only for PS5, like Dead Space remake. XSS is by far the top selling Xbox console (and by some accounts the top selling console in Brazil) and I think this situation, however unfortunate, does not come as a surprise.