Nintendo Withdrew Wii and DS Sales From Amazon Over Illegal Pricing Request
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Nintendo of America stopped selling Wii and DS systems on Amazon after the retailer requested financial support to undercut Walmart's prices, a demand former executive Reggie Fils-Aimé declared illegal. The company withdrew to avoid illegal actions and protect its relationships with other retailers. Amazon later participated in the launch of the Nintendo Switch.
Facts First
- Nintendo withdrew Wii and DS sales from Amazon after the retailer sought financial support to beat Walmart's prices.
- Former Nintendo of America president Reggie Fils-Aimé told an Amazon executive the request was illegal.
- The company stopped selling to Amazon to avoid illegal actions and protect other retailer relationships.
- Amazon later supported the launch of the Nintendo Switch, indicating a mended business relationship.
- Nintendo launched a pop-up 'Nintendo Experience Zone' in a London Argos store, offering games, consoles, and collectibles.
What Happened
During Reggie Fils-Aimé's tenure as president of Nintendo of America, the company withdrew the sale of its Wii and DS systems from Amazon. This action was taken after Amazon requested financial support from Nintendo to achieve lower prices than Walmart. Fils-Aimé, who spoke about the incident at an NYU Game Centre lecture, told an Amazon executive that the requested financial support was illegal. Nintendo stopped selling to Amazon to avoid illegal actions and to protect its relationships with other retailers.
Why this Matters to You
This episode highlights how corporate negotiations over pricing and retail support can directly affect which stores you can buy popular products from. When a major retailer like Amazon is removed from a manufacturer's sales channels, it may limit your shopping options and convenience. The resolution, where Amazon later participated in the Switch launch, suggests such disputes can be temporary and that companies may prioritize maintaining broad retail availability for future products, which could benefit your access to new consoles.
What's Next
While the historical dispute over the Wii and DS is resolved, the principles that guided Nintendo's decision—avoiding illegal pricing support and maintaining fair retailer relationships—are likely to continue influencing its business dealings. The company's current retail strategy appears to include experiential marketing, as seen with the new Nintendo Experience Zone pop-up store in London, which may expand to other locations.