During a recent NYU Game Center lecture, former Nintendo of America president Reggie Fils‑Aimé outlined the commercial tensions that once prompted Nintendo to halt sales through Amazon’s U.S. storefront.
Fils‑Aimé—who led Nintendo of America during major hardware cycles including the Nintendo DS era and later the Wii—addressed the company’s retail strategy and the importance of protecting relationships with brick‑and‑mortar partners.
Fils‑Aimé told attendees that, at the time, Nintendo was selling roughly 10 million Nintendo DS units annually in the Americas and that the company wielded substantial retail scale.
He said Amazon was aggressively expanding into video game retail and sought to offer the lowest marketplace prices, even below large chains such as Walmart.
According to his account, an Amazon executive asked Nintendo for what he described as an ‘‘obscene’’ level of financial support so Amazon could undercut competitors on price.
Paraphrasing his remarks for clarity: Fils‑Aimé explained that Amazon asked for large financial concessions to secure deep discounts, a request he rejected on legal grounds and because it would jeopardize Nintendo’s relationships with other U.S. retailers.
He said Nintendo ultimately stopped selling its products through Amazon in the United States for a period rather than comply with demands that could be construed as illegal or unfair to other partners.
Fils‑Aimé framed the decision as both a legal obligation and a business principle—refusing to be ‘‘pushed around’’ and protecting long‑standing retail partners.
The episode highlights the complex balance between online marketplaces and traditional retail channels—a dynamic that has continued through subsequent Nintendo hardware generations, from the DS to the Nintendo Switch and the company’s digital storefront, the Nintendo eShop.
Nintendo’s distribution strategy has historically involved partnerships with nationwide retailers such as Walmart and GameStop alongside its own digital initiatives and direct communications channels like Nintendo Direct.
Fils‑Aimé’s comments offer an inside look at retail negotiations that can shape availability and pricing in the video game market.
As digital storefronts and e‑commerce continue to evolve, the tensions he described remain relevant to publishers, platform holders, and retail partners navigating pricing, promotion, and competitive access.
Fils‑Aimé—who led Nintendo of America during major hardware cycles including the Nintendo DS era and later the Wii—addressed the company’s retail strategy and the importance of protecting relationships with brick‑and‑mortar partners.
Fils‑Aimé told attendees that, at the time, Nintendo was selling roughly 10 million Nintendo DS units annually in the Americas and that the company wielded substantial retail scale.
He said Amazon was aggressively expanding into video game retail and sought to offer the lowest marketplace prices, even below large chains such as Walmart.
According to his account, an Amazon executive asked Nintendo for what he described as an ‘‘obscene’’ level of financial support so Amazon could undercut competitors on price.
Paraphrasing his remarks for clarity: Fils‑Aimé explained that Amazon asked for large financial concessions to secure deep discounts, a request he rejected on legal grounds and because it would jeopardize Nintendo’s relationships with other U.S. retailers.
He said Nintendo ultimately stopped selling its products through Amazon in the United States for a period rather than comply with demands that could be construed as illegal or unfair to other partners.
Fils‑Aimé framed the decision as both a legal obligation and a business principle—refusing to be ‘‘pushed around’’ and protecting long‑standing retail partners.
The episode highlights the complex balance between online marketplaces and traditional retail channels—a dynamic that has continued through subsequent Nintendo hardware generations, from the DS to the Nintendo Switch and the company’s digital storefront, the Nintendo eShop.
Nintendo’s distribution strategy has historically involved partnerships with nationwide retailers such as Walmart and GameStop alongside its own digital initiatives and direct communications channels like Nintendo Direct.
Fils‑Aimé’s comments offer an inside look at retail negotiations that can shape availability and pricing in the video game market.
As digital storefronts and e‑commerce continue to evolve, the tensions he described remain relevant to publishers, platform holders, and retail partners navigating pricing, promotion, and competitive access.