Nintendo cut ties with Amazon in the mid - 2000s after the US company sought preferential treatment that would have violated the law and damaged relationships with other retailers. Former Nintendo of America president Reggie Fils -Aimé revealed these details during a lecture at NYU , explaining how the company chose to protect its integrity over financial gain.
See also: Amazon new deal: Oprah Winfrey's podcasts available
The dispute began during the Nintendo DS, when Amazon was aggressively expanding beyond books and trying to undercut competitors on price. According to Fils-Aimé, Amazon wanted to outbid even Walmart and was seeking “an unacceptable amount of support, financial support.” Although he did not specify the exact type of financial support Amazon, Fils-Aimé reported telling the company’s spokesperson: “You know this is illegal, right? I can’t do this.”
Nintendo 's decision to discontinue sales on Amazon around 2007 had a significant impact on the market. During this period, the Nintendo DS sold millions of units worldwide, eventually reaching 154 million units over its lifetime. The absence from Amazon meant that consumers were unable to purchase Nintendo consoles from the platform for many years, despite Amazon increasing its share of the electronics market from 5% in 2005 to 30% in 2010 .
Nintendo's strategy to protect retailers
Nintendo 's decision reflected a broader strategy to protect the retailer ecosystem. In the 2000s, brick-and-mortar stores like GameStop , EB Games , and Walmart accounted for 60-70% of the gaming market, while online sales were less than 10% . Nintendo realized that giving preferential treatment to Amazon could violate the Robinson-Patman Act , which prohibits discriminatory pricing practices.
See also: Amazon will abandon Android on future Fire TV Sticks
Fils -Aimé stressed that the company was not willing to do anything that would jeopardize its relationships with other retailers. “We literally stopped selling on Amazon, and that was because I wasn’t going to do anything illegal. I wasn’t going to do anything that would jeopardize the relationship we have with other retailers,” he said. This stance has helped Nintendo build respect in the marketplace and maintain strong relationships with traditional retailers.
Reconnection and the era of Nintendo Switch
The two companies eventually rekindled their relationship around 2017-2018, allowing Amazon to sell the Nintendo Switch and later accept pre-orders for the Switch 2.This reconciliation came at a time when the retail landscape had changed dramatically, with digital sales increasing significantly and Amazon establishing itself as a dominant force in e-commerce.
Amazon managed to capture 15% of Switch sales after the 2018 reconciliation, with the console selling over 100 million units . This success proves that Nintendo 's long-term strategy of maintaining fair relationships with all retailers has paid off, as the company has been able to take advantage of both traditional and digital sales platforms.
See also: Apple and Amazon team up to compete with Starlink
Now, with the Switch 2 expected to launch in 2025 and projected to sell 20 million units in its first year, the relationship between Nintendo and Amazon appears to have stabilized. Analysts predict that trends will continue to ease tensions as digital sales are expected to reach 70% of the market, minimizing the risks of preferential treatment for physical sales. This story, as revealed by Fils-Aimé, is an important example of how companies can maintain their moral integrity even when facing financial pressures.
