Nintendo’s ruthless response to amazon’s price pressure – a former president’s revelations
Reggie Fils-Aimé has offered a stark glimpse into a tense standoff with an amazon executive during the twilight years of the Nintendo DS and Wii eras, revealing a surprising and decisive response to a demand that bordered on extortion.
A demand for ‘obscene’ support – and a firm line drawn
Speaking at New York University, the former Nintendo of America president recounted a phone call from an amazon executive late in the 2000s or early 2010s, a period when amazon was aggressively pursuing video game market share and relentlessly pushing for the lowest possible price point. Fils-Aimé described the executive’s request as “obscene,” demanding significant financial backing to secure that position – effectively undercutting Walmart.
“I literally said to the executive, ‘You know, that’s illegal. I can’t do that,’” he stated, recalling the immediate, chilling silence on the other end of the line followed by the insistence that the deal was still desired. The result? Nintendo severed ties with Amazon.
This wasn't a polite negotiation; it was a calculated rejection of a fundamentally incompatible strategy.
Beyond the ds: a history of discord
Fils-Aimé’s account isn’t an isolated incident. Just last year, reports surfaced of friction between Nintendo and Amazon regarding third-party resellers, ultimately leading to the withdrawal of certain Switch products ahead of the Switch 2 launch. Nintendo vehemently denied the claims, with Amazon offering a somewhat lukewarm assurance of continued product availability. The subsequent return of Nintendo titles to Amazon in June 2025, after a year of absence, remains shrouded in mystery – a consequence, arguably, of these underlying tensions.
The details surrounding that period remain deliberately opaque, but the core issue – a fundamental disagreement on business principles – is undeniably clear.
He emphasized that Amazon was “right there at the table” when the original Switch debuted in 2017, highlighting the success as stemming from a “mutually beneficial approach.” Yet, he also stressed that maintaining relationships with other retailers was paramount, and that refusing to accommodate Amazon’s demands was a non-negotiable stance – a deliberate hardening of the company’s position.
“I wasn’t going to do something that would put at risk the relationships we have with our other retailers,” Fils-Aimé explained, “but it also set the stage to say, ‘Look, you’re not going to push me around. This is the way we do business. And so, that’s how, overtime, you build respect.’”
The relationship wasn't without its successes. The initial Switch launch, despite the underlying disagreements, proved remarkably lucrative, a testament to Nintendo’s enduring brand strength and innovative game design.
Ultimately, Nintendo’s response wasn’t about winning a single battle; it was about safeguarding its core values and fostering a sustainable ecosystem.