Former Nintendo of America president Reggie Fils-Aimé has revealed the strategic reasoning behind the launch of the NES and SNES Classic Editions. Speaking at the NYU Game Centre Lecture Series, he explained that these miniature retro consoles were introduced as a business tactic to maintain sales volume during the struggling Wii U era.
Business Strategy During Wii U Decline
Reggie stated that the company needed products that could sell in high quantities during the holiday season, as the Wii U was underperforming commercially. He said, "The other thing we did is, in two successive years, we launched those micro legacy devices. If you remember those, right? The small NES and then the following year the small SNES. We did that to sustain our business because we needed something to sell at volume come the holiday season. So it was a series of commercial ideas, knowing full well that… you know, the Wii U was on life support."
Retro Consoles as Revenue Source
Nintendo launched the NES Classic Edition in 2016 with 30 built-in games, followed by the SNES Classic Edition in 2017. Both arrived during the final phase of the Wii U lifecycle, a period marked by weaker hardware sales. These retro consoles provided an alternative revenue stream as Nintendo prepared for the transition beyond the Wii U. While some fans anticipated similar releases for platforms like the N64 or Game Boy, Nintendo has not expanded this strategy further, instead making classic titles available through the Nintendo Switch ecosystem.
Past Tensions with Amazon
Reggie also discussed past conflicts between Nintendo and Amazon during the Wii and DS era. He revealed that Amazon sought an "illegal" arrangement for pricing support, requesting excessive financial backing to undercut competitors like Walmart. Reggie refused, stating, "I literally said to the executive, 'You know that's illegal, right? I can't do that.'" This led to a pause in their business relationship, which has since been renewed multiple times, including around the launch of the Nintendo Switch 2.
These insights shed light on Nintendo's strategic decisions during challenging times, highlighting the company's focus on ethical business practices and innovative product launches.
