When Amazon Demanded "Obscene" Kickbacks: Reggie Fils-Aimé Reveals Why He Cut Off Nintendo's Wii and DS Supply

In a candid lecture at the NYU Game Center, former Nintendo of America President Reggie Fils-Aimé dropped a bombshell: an Amazon executive once demanded an "obscene amount of financial support" to undercut Walmart on Wii and DS prices—a request he deemed illegal. Fils-Aimé's response was immediate and decisive: he cut off Amazon's supply of both consoles entirely. The revelation offers a rare behind-the-scenes look at the retail battles that defined Nintendo's dominance during the late 2000s and early 2010s, and a defining moment of Fils-Aimé's leadership.

The "Obscene" Demand That Crossed a Line

Fils-Aimé described the Amazon executive's request as "obscene"—demanding substantial financial support to artificially lower Wii and DS prices below those of Walmart. He considered this illegal, likely violating antitrust or price-fixing laws that prohibit manufacturers from dictating retail pricing. The demand came during the "tail end of the Wii and DS generation," around the late 2000s or early 2010s, when Nintendo was at the peak of its hardware success. The company was selling 10 million consoles annually in the Americas alone.

Fils-Aimé's response was blunt: "I wasn't going to do something illegal." He cut off Amazon's supply of both consoles entirely, refusing to negotiate further. The decision was not made lightly, but it was clear to him that crossing this line would have serious legal and ethical consequences.

Protecting Retailer Relationships and Legal Integrity

Fils-Aimé's rationale went beyond simple legality. He prioritized maintaining trust with other retail partners—Walmart, GameStop, Target, and others—over accommodating Amazon's aggressive tactics. "I wasn't going to do something that would put at risk the relationship we have with our other retailers," he stated during the NYU lecture, streamed on Twitch alongside Joost van Dreunen. For Fils-Aimé, long-term partnerships were more valuable than short-term gains.

The decision was a calculated risk. By cutting off Amazon, Nintendo was willing to lose one of the world's largest distribution channels. But the company's leadership understood that compliance with the demand could damage its reputation and expose it to legal liability. This approach reflected a broader philosophy: that ethical business practices and strong retailer relationships are essential for sustained success, even in a competitive market.

The Aftermath: Sales Resilience and Eventual Reconciliation

Despite being pulled from Amazon for a period, Nintendo's hardware performance remained extraordinary. The Wii ultimately sold over 101 million units, while the DS lineup—including the DS Lite and DSi—sold a combined 154 million units. These numbers proved that Nintendo's retail strategy did not suffer from the absence of Amazon's platform. The company's other retail partners continued to support its products, and consumers found the consoles through other channels.

Nintendo and Amazon eventually mended fences. Fils-Aimé noted that Amazon supported the Switch launch in 2017 "exceptionally well," based on a "mutually beneficial approach." This reconciliation highlights the pragmatic nature of business relationships: even after a significant falling-out, both companies found common ground for future success. The Switch went on to sell over 155 million units as of December 2025, becoming Nintendo's best-selling console ever, while the Switch 2, launched in June 2025, became the fastest-selling console of all time, moving more than 10 million units in four months.

Broader Context: Amazon-Nintendo Tensions and Fils-Aimé's Legacy

The anecdote from Fils-Aimé's NYU lecture adds historical context to more recent tensions between Nintendo and Amazon. In 2024, rumors surfaced that the two companies were at odds over third-party resellers ahead of the Switch 2 launch, but both denied the claims. Nintendo games returned to Amazon in June 2025 after about a year without first-party titles being available directly from the retailer, suggesting that the relationship remains complex but functional.

Fils-Aimé served as Nintendo of America President from 2006 to 2019, retiring during the Switch's peak. His successor, Doug Bowser, served until 2025, followed by current president Devon Pritchard. This anecdote reinforces Fils-Aimé's reputation as a principled leader willing to make tough calls for ethical business.

The story is more than a behind-the-scenes curiosity. It illustrates that even during peak hardware dominance, Nintendo under Fils-Aimé refused to compromise on legal and ethical standards. The decision ultimately strengthened Nintendo's retail relationships and did not hinder its record-breaking sales. As the industry continues to evolve, this lesson remains relevant: sometimes, the most profitable move is to walk away.