Background on Reggie Fils-Aimé
Reggie Fils-Aimé joined Nintendo of America in 2003 and served as president and COO until his retirement in 2019. Under his leadership, Nintendo saw remarkable success, selling ten million Wiis and DS units annually in the Americas.
Nintendo Cuts Ties with Amazon
Fils-Aimé recently discussed the pressure Amazon placed on Nintendo regarding console pricing and support. He revealed that Amazon demanded a substantial amount of financial backing to ensure they could offer the lowest prices, aiming to undercut competitors like Walmart. Fils-Aimé recounted a conversation with an Amazon executive, stating, "You know that's illegal? I can't do that." This marked a turning point in their relationship.
The Decision to Stop Selling to Amazon
Ultimately, Nintendo decided to halt sales to Amazon due to these demands. Fils-Aimé explained, "Literally we stopped selling to Amazon, and it's because I wasn't going to do something illegal." He emphasized that this choice was not just about legalities but also about maintaining relationships with other retailers. It set a precedent that Nintendo would not be pushed around, reinforcing their business principles.
Rebuilding the Relationship
Despite the rocky start, Fils-Aimé noted that by the time the original Switch launched, Amazon was included in Nintendo's strategy. He remarked, "Supported the launch exceptionally well. But it was based on mutually beneficial approach that led to that type of strong business result." This shift highlighted a more collaborative effort between the two companies.