Background on Nintendo's Sales Strategy
Nintendo temporarily halted sales of its Wii and DS consoles on Amazon due to high-pressure tactics from the retailer. According to Reggie Fils-Aimé, former head of Nintendo of America, the company faced demands from Amazon for financial support to keep prices lower than competing retailers like Walmart. Fils-Aimé stated, "You know that's illegal. I can't do that," highlighting the ethical conflict that led to this decision.
During the peak of the Wii and DS era, both consoles sold 10 million units annually in North America. However, Amazon aimed to undercut competitors while gaining a larger market share, which prompted Nintendo to cease their partnership. Fils-Aimé noted, "Literally, we stopped selling to Amazon. And it's because I wasn't going to do something illegal," emphasizing the importance of maintaining solid relationships with other retailers.
Reviving the Partnership with Amazon
Fast forward to 2017, when Nintendo prepared to launch the Switch. Fils-Aimé explained that the company wanted every retailer, including Amazon, to participate in the launch to maximize reach. By then, the relationship had improved significantly: "Jump forward a number of years, we're getting ready to launch the Switch. We wanted every retailer to participate with us and go big, and Amazon was right there at the table," he said.
The Switch ultimately became Nintendo's best-selling console, moving over 155 million units as of December 2025. The recently launched Switch 2 even broke records, selling more than 10 million units within just four months of its debut in June 2025, proving that the renewed collaboration with Amazon was beneficial for both parties.
What This Means for the Gaming Industry
This incident underscores the complexities of retail partnerships in the gaming industry. Nintendo's ability to stand firm against Amazon's demands demonstrates a commitment to ethical business practices, which can foster respect and long-term relationships with retailers. As the industry evolves, this situation serves as a reminder that navigating these partnerships requires careful consideration of pricing strategies and retailer relationships.