Nintendo and Retailers Collaborate on Measures to Combat Switch 2 Scalping

Nintendo is undertaking significant and proactive measures to combat scalpers and fraudulent listings of its highly anticipated Switch 2 console, particularly in the Japanese market. The company is driven by the immense demand and a desire to protect consumers, ensuring a successful launch for its next-generation hardware. These efforts involve direct action, as well as unprecedented collaborations with major e-commerce platforms.
The scale of consumer interest in Japan is highlighted by the 2.2 million MyNintendo users who attempted to register for a pre-order directly with Nintendo, a number that Nintendo acknowledged exceeds its current allocated stock for direct sales. This high demand, coupled with potentially limited initial supply, creates a fertile ground for scalpers, who aim to profit by reselling sought-after products at inflated prices. Nintendo's own direct pre-order system, while a step towards consumer protection, was recognized as insufficient to fully address the scalping threat, prompting these more extensive measures.
A cornerstone of Nintendo's anti-scalping strategy in Japan is a collaborative effort with prominent secondhand marketplaces. Nintendo has established a system for sharing information and working together with Mercari, Yahoo! Auctions, Yahoo! Flea Market, and Rakuten Rakuma. These platforms have agreed to proactively monitor and remove fraudulent listings of Nintendo products, including the Switch 2, and to penalize vendors who violate their terms of use. This joint approach aims to create a more secure purchasing environment for genuine customers.
Yahoo! Japan has taken particularly strong action. Its auction site, Yahoo! Auctions, has announced a ban on all listings for the Switch 2, a prohibition that will extend even after the console's official release. The company cited the console being "highly topical" and the potential for fraudulent listings and "confusion" among consumers as reasons for this decisive step. While listings will be blocked on the auction site, Yahoo! Japan has indicated that the Switch 2 will still be sold on its Yahoo Shopping platform, albeit with warnings to customers about potential market volatility at launch.
Beyond these collaborations, other measures have reportedly been implemented in Japan to deter scalpers, such as requiring consumers to possess store-specific credit cards or to have achieved a certain spending threshold to qualify for retailer rewards programs, thereby becoming eligible for pre-orders. These tactics aim to prioritize genuine local customers over bulk buyers intending to resell.
Nintendo's intensive focus on the Japanese market is reportedly part of a broader strategy. Analysts suggest Japan is a primary concern for Nintendo, especially when contrasted with the current state of the US video game industry, which has seen layoffs and studio closures. In contrast, Japan's gaming sector has shown signs of growth, including salary increases and active hiring. By securing a successful and scalper-free launch in Japan, Nintendo could quickly demonstrate the Switch 2's success and profitability, paving the way for a more measured global rollout as supply gradually meets worldwide demand. Nintendo's past actions, such as pulling its game listings from Amazon in the US to counter scalpers and pirates, indicate a willingness to take unconventional steps to protect its products and consumers.
While these comprehensive measures are currently concentrated in Japan, Nintendo may consider similar strategies in other regions, including the US, although such plans might not be publicly disclosed. Despite the stringent anti-scalping efforts, Nintendo maintains an optimistic outlook, reportedly anticipating sales of 15 million Switch 2 units by the end of the current financial year. The company's determined approach underscores its commitment to defeating scalpers and ensuring legitimate fans have access to its new console.