Nintendo was accused of pressuring dealers who tried to undercut suggested prices by threatening to reduce or slow shipments. Although Nintendo’s dominance has been credited with keeping the video-game market strong, many dealers chafed. Even before the settlement, the company had begun to ease its iron grip. Last fall it promised to allow outsiders to manufacture some games for its machine–an abrupt turnaround from the old policy of running every game through Nintendo’s plants.
The settlement might embarrass Nintendo, but it won’t hurt the bottom line: the rebates will be “instant redemption certificates” that can be used only to buy official Nintendo games. When it comes to business, the game giant doesn’t play around.
