Amazon Missed Out On Nintendo Switch 2's Debut Due To Disagreement Over Unauthorized Sales - Report

Amazon (AMZN) missed out on selling Nintendo's Switch 2, the biggest handheld console release of all time, in the U.S. after a disagreement over unauthorized sales, according to a Bloomberg report, citing a person familiar with the matter.

The Japanese gaming company stopped selling on Amazon after noticing that third-party merchants were offering games for sale in the U.S. at prices that undercut Nintendo's advertised rates, according to the report.

Enterprising sellers were buying Nintendo products in bulk in Southeast Asia and exporting them to the U.S., the report added.

The Switch 2 went on sale on June 5 through Walmart (WMT), Target (TGT), Best Buy (BBY), GameStop (GME), and Nintendo's own local online store.

Nintendo sold more than 3.5 million Switch 2 units in just four days, a record start for the company's first new console in eight years.

Bloomberg reported that Amazon attempted to assuage Nintendo by offering to attach labels to products that guarantee authenticity, but the offer wasn't sufficient.

On Stocktwits, the retail sentiment for Amazon was 'bullish.' Its shares are flat year-to-date.

Bloomberg reported that Nintendo product listings started disappearing from Amazon's U.S. site last year. The listings had previously appeared as "Sold by Amazon," but some Nintendo products, from independent retailers, remained on the site.

Amazon attempted to assuage Nintendo by offering to attach labels to products that guarantee authenticity, but the offer was not sufficient, and Nintendo ultimately opted to pull its products from its U.S. site.

To be sure, Amazon sells Nintendo products, including the Switch 2, in foreign markets such as Canada, Japan, and the UK.

Amazon and Nintendo denied the reported content and nature of their negotiations in statements to Bloomberg.

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