Former Nintendo of America president Reggie Fils-Aimé has revealed a tense business story. During a lecture at NYU, he explained that the company cut ties with Amazon during the DS era. The reason: Amazon demanded financial support to lower prices below those of Walmart, a practice Nintendo considered illegal and harmful to other partners.
Nintendo's red line against anticompetitive practices 🚫
Nintendo's decision was not a whim. Amazon requested payment to cover the price difference when selling consoles below cost, a strategy known as a loss leader aimed at eliminating competition. Fils-Aimé stated that this violated fair trade laws. By refusing, Nintendo preferred to lose a massive sales channel rather than face lawsuits or unequal treatment with retailers like GameStop or Target.
Amazon wanted to be the cheapest seller, but ran out of stock 😅
Imagine Jeff Bezos calling Reggie and asking him for money to sell his own consoles cheaper. Nintendo, with a poker face, said: no, thanks. And so, for a time, buying a DS on Amazon was like searching for a unicorn: you knew it existed, but you couldn't find it. In the end, the big N's strategy was simple: prefer to lose sales rather than lose dignity (and a possible fine).