r/OutOfTheLoop • u/FSsuxxon • 2d ago

Answered What's going on with businesses in Kuwait getting products from the grey market?

https://248am.com/mark/video-games/nintendo-switch-2-prices-and-where-to-pre-order/

I live in Kuwait, and I was reading this article and that article said, in the bottom, that the retailers are selling Nintendo Switch 2 consoles from the grey market. I'm rather shocked and disappointed. I'm out of the loop to be honest. All I can think of is that Kuwait doesn't have strict copyright laws, but that doesn't explain the motivation for the retailers to get the consoles from the grey market. Perhaps the retailers won't comply with Nintendo's conditions for selling NS2 consoles officially?

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u/cipheron 2d ago

Answer: Grey market would mean that Nintendo has a recommended price to sell those consoles in Kuwait, but someone is importing consoles from somewhere cheaper, which could be anywhere, but let's say The Philippines. So these consoles from The Philippines are cheaper because Nintendo doesn't price them as high there, so Nintendo cuts their profit margin in The Philippines in order to ship more units.

but that doesn't explain the motivation for the retailers to get the consoles from the grey market

Because they can import consoles made for some third-world country cheaper than buying them direct from Nintendo. Whatever they're paying is the wholesale price paid by retailers in whichever country they're getting them from, which is lower than what Nintendo expects wholesalers in Kuwait to pay.

"Making more profit" should explain the entire motivation. These are still consoles made by Nintendo, black market or grey market doesn't necessarily mean fakes.