Compliance Updates
Euroconsumers calls Nintendo to solve its “Joy-Con Drift” probl
The new version of the Nintendo “Switch” console, the Switch OLED, expected on October 8th 2021, shows an unsolved technical problem with its controllers – an issue commonly called “Joy-Con Drift” – that prevents players from playing the game properly. Nintendo is quite aware of this flaw. Yet it still plans to roll out the new Switch with the old problem. Euroconsumers calls Nintendo to account.
“Joy-Con Drift”
The flaw in the controllers manifests itself after a couple of months, falsely reading input from the controller stick, as if the user has their thumb pressed down on the controller, causing the game character to move without the player even touching the device. This prevents the player from playing the game as intended. This issue is not new: it was already denounced extensively by users of the current Nintendo Switch, IFixit and multiple consumer organisations.
Nintendo’s inaction
This flaw has previously been raised with Nintendo. Firstly in January 2020, Test Achats/Test Aankoop, Euroconsumers’ Belgian national organization, sent a letter of formal notice to Nintendo Europe GmbH calling on the company to repair all the defective products free of charge and to publicly communicate about the defect.
In January 2021, BEUC, the European umbrella group for 46 independent consumer organisations, launched an external alert to the CPC network about a widespread infringement with Union dimension of EU consumer law, related to the premature obsolescence of the Nintendo Switch.
On top of this EU action, two class actions have been launched in the US, and a Canadian firm has filed an application to begin a class action.
Nevertheless, Nintendo has taken no actions to remedy the flaw or alert consumers. It even issues a new Switch OLED with the exact same Joy-Con design, with the exact same inescapable defect. Meanwhile Nintendo keeps on putting a great deal of emphasis on the quality and versatility of the Joy-Con in its advertisements t.
This early obsolescence is not only unfair and harmful to consumers, but also affects the environment, creating a pile of unnecessary and extremely polluting electronic waste.
Euroconsumers’ call on Nintendo
In a letter Euroconsumers has confronted Nintendo with the above, asking them to:
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Adequately inform consumers of the existence of the “Joy-Con Drift” and its impact on the expected lifespan of the Nintendo controllers on the packaging of the product.
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Fully respect provisions on the legal product guarantee, without imposing any burden of proof on consumers or charging them with any costs to repair or replace their Switch controllers.
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Provide clear contact details at Nintendo for consumers to report and resolve Joy-Con problems, and for Euroconsumers and its national organisations to address problems to that regard.
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Resolve the technical “Joy-Con Drift” flaw and ensure a more sustainable version of the controllers. Euroconsumers, and its national organizations stand ready to deploy decades of technical and testing experience to support finding solutions.
Euroconsumers is available and willing to launch a dialogue with Nintendo in order to establish the best way to satisfy the above requests.
“Nintendo has a duty to its customers to provide functioning devices,” said Marco Scialdone, Head of Litigation and Academic Outreach at Euroconsumers. “To knowingly continue selling these game consoles when they are defective is a breach of EU consumer law. We expect Nintendo to do the right thing and work with us to find a solution for consumers.”
“While on one hand Nintendo pretends to commit to the green transition and serve consumers, its continued distribution of faulty electronic devices shows it’s true lack of genuine commitment,” said Els Bruggeman, Head of Policy and Enforcement at Euroconsumers. “Early obsolescence results in more electronic waste, which is particularly difficult to dispose of. This shows a regrettable lack of respect for both the environment and consumers.”
Amidst an evolving economic landscape, gaming executives report a positive outlook on future industry business conditions while remaining satisfied with the current business environment, according to the American Gaming Association’s (AGA) Gaming Industry Outlook.
Nearly all gaming executives surveyed characterized the current business environment as good (44%) or satisfactory (50%), mirroring similar sentiment from Q3 2023. Meanwhile, executives are more optimistic about future conditions, with 32 percent of CEOs expecting business conditions to improve over the next six months, up from 20 percent in Q3 2023.
“Gaming’s record-setting growth over the last three years has set a new standard for industry success,” said AGA President and CEO Bill Miller. “However, as we enter a period of market normalization, continued investment and innovation in offering world-class, responsible entertainment experiences will be required to maintain industry momentum.”
Gaming Executive Panel
Gaming executives have become more positive in their views that overall balance sheet health will improve over the next 6 months (42% net positive), but they expect the pace of revenue growth (13% net negative) and new hiring (22% net negative) to slow. These expectations for decelerating growth have influenced expectations for increases in capital investment and gaming units in operation, with smaller net positive sentiments than before.
- In contrast to past Outlooks, gaming equipment suppliers are slightly pessimistic about the sale of gaming units for replacement use and new or expansion use (both 13% net negative). However, they remain optimistic about the pace of capital investment (38% net positive).
- Half of operator CEOs expect capital investments in hotels over the next year to be higher than normal, and compared to last fall, more also expect higher than normal levels of capital investment in meetings and conventions and table games (28%). Meanwhile, 44 percent of CEOs expect increases in food and beverage investment, down from 67 percent in Q3 2023.
These expectations are also informed by evolving macroeconomic challenges. Executives report that inflationary or interest rate concerns continue to be a major factor limiting operations (28%), but these have been overtaken by geo-political risk (34%) and uncertainty of the economic environment (34%) as the biggest limiting factors in the most recent Gaming Executive Panel.
Current Conditions Index
The Current Conditions Index of 102.8 for Q1 indicates solid annualized real economic growth in the industry of 2.8%. This includes gaming revenue, employment and employee wages and salaries. Notably, the Current Conditions Index shows gaming expanding faster than the overall U.S. economy which last week reported 1.6 percent GDP growth in Q1 2024.
Future Conditions Index
The Future Conditions Index stands at 102.2, indicating annualized industry economic activity, after controlling for underlying inflation, is expected to moderately increase over the next six months. This outlook reflects Oxford Economics’ forecast that the U.S. economy will slow during 2024 but avoid recession. Despite a projected economic slowdown, consumer survey results continue to indicate that more than one-third of adults expect to visit a casino during the next 12 months, consistent with prior quarter results.
About the Outlook
The AGA Gaming Industry Outlook is prepared biannually by Oxford Economics. It provides a timely measure of recent industry growth and future expectations. The Q1 2024 survey was conducted between March 28 – April 10, 2024. A total of 32 executives responded, including executives at the major international and domestic gaming companies, tribal gaming operators, single-unit casino operators, major gaming equipment suppliers, and major iGaming and/or sports betting operators.
PHOENIX – Bettors in Arizona wagered approximately $637.5 million on sports in February of 2024, according to a new report by the Arizona Department of Gaming. This represents an approximate 4.6% increase when compared to February of 2023.
The state collected approximately $2.8 million in privilege fees in the month. You can view the full February report on the ADG website: LINK.
North Carolina legislator intends to introduce legislation to ban college player prop bets, according to a staff member.
North Carolina State Representative Marcia Morey, D-Durham, a former Olympic swimmer, will submit a bill by the bill filing deadline on Thursday to ban these bets, Hannah Smith, Administrative Assistant, told Gambling.com on Monday.
The North Carolina Legislature began meeting in Raleigh on April 24 with the session set to end on July 31.
Recently, NCAA President Charlie Baker, a former Massachusetts governor, called upon states to ban college player prop bets, which is short for proposition bets. Baker said these bets, based on an athlete’s individual performance such as the over/under on the number of rebounds the player might record, could undermine the integrity of games and lead to harassment of players.
Former North Carolina Tar Heel star Armando Bacot is among athletes who have expressed concern about harassment. Bacot said he heard from fans angry that he didn’t get enough rebounds in an NCAA tournament game against Michigan State – a game the Tar Heels won.
College Prop Bets Allowed in Some States
Some states already ban these bets, while others including Louisiana, intend to impose a ban this summer before the college and pro football seasons begin.
In other states, the proposed ban has met with resistance.
During a recent interview on The Edge, Arkansas casino executive Carlton Saffa told Gambling.com a ban would drive bettors to unregulated offshore sportsbooks or illegal bookies. He said a better solution is to keep those bets legal in regulated markets where irregularities can be spotted.
“Sunshine is the best disinfectant,” Saffa, the Chief Marketing Officer for the Saracen Casino Resort in Pine Bluff, Arkansas, said.
College player prop bets remain legal in Arkansas.
In North Carolina, where statewide mobile sports betting became legal in March, State Representative Jason Saine, R-Lincoln, said in a story on the WNCN-TV website that a college player prop ban is ‘a solution in search of a problem’. If athletes are being harassed, he said, campus police should crack down on those making the threats and make an example of them. A ban won’t stop the problem, Saine said.
“If we ended (player prop bets) tomorrow, this kind of behavior would still continue with fanatical people,” Saine said. “Follow rules of society, you don’t threaten anybody, or you shouldn’t be. And, that’s kind of my take on it. I don’t think we need a whole new set of rules to pursue something like that.”
Morey, the lawmaker proposing the ban, said people are ‘forgetting about the individuals who are actually playing the game and having the pressure on them’.
“Let’s give them a break,” she said.
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