New report reveals why Amazon missed out on Switch 2 launch

Nintendo opted not to launch its mega-popular Switch 2 on Amazon in the US due to issues with price undercutting, sources tell Bloomberg.

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Before launch. the Nintendo Switch 2 could be pre-ordered at practically every retailer except the US branch of the world's largest digital storefront. The Switch 2's absence on Amazon US was noticed by millions, and consumers didn't understand why Amazon had been excluded. Now we have an answer.

According to a new report from Bloomberg's Mochizuki Takashi, Nintendo withheld the Switch 2's launch from Amazon due to price undercutting.

Despite the negative impact of trade tariffs, which Nintendo believes will actually lower its full-year profit margins, Nintendo kept the Switch 2's price tag the same in the United States. Keeping this price was important, and Nintendo certainly didn't want to sell the device for cheaper--if anything, the company wanted to increase the price to offset the volatility it was currently facing in the tech sector.

Nintendo has already confirmed the Switch 2 is less profitable than the Switch 1 on a per-sale basis.

The report states that Nintendo essentially saw third-party sellers continually undercut their MSRP price tags. This was happening in the United States, which is a vital region for Nintendo; the Americas make up 44% of Nintendo's net sales last year.

Third-party sellers were essentially buying Nintendo games in bulk, selecting certain regions due to more favorable exchange rates. Then the sellers would list these Nintendo games on Amazon and sell them to US customers at a cheaper rate.

At the time of writing, the Switch 2 still is unavailable for purchase on Amazon US, but a number of Switch 2 games have popped up.