Originally posted by stevebrot .sales are poor enough that the official repair stations are not seeing enough warranty service volume to justify keeping them open. That being the case, cut out the competition.
There is a different thread about how cameras are disposable (I doubt that Nikon cameras are less disposable than Pentax ones), but I think it is fair to say that the retail repair market is pretty well finished. If the retail repair market wasn't in the toilet, Nikon could reimburse independent shops for warranty repairs at close to the same level as their own shops (because independent shops would look at it as a way to gain a future paying customer), but if independent shops expect to make some profit on warranty repairs, it only makes sense that Nikon would cut them out of the picture.
By keeping warranty repairs in-house, you have greater control over warranty costs, not just on the markup for parts and labour, but also because there is no incentive for in-house repair shops to fix things that aren't broken or replace parts that could be repaired for less money. You also have greater control over customer service levels because there is less pressure to refuse warranty service or do warranty repairs in the quickest amount of time, neglecting to fix the real problem and just get the repaired product out the door. The local proximity advantage for independent shops disappears when the broken item sits on a shelf longer than it does to ship it halfway across the continent. Only if there isn't enough warranty repair business to justify a skeleton staff to repair only one brand is there an advantage for the camera manufacturer to let independent shops handle all warranty repairs and since Nikon already had two in-house repair shops in the U.S., that obviously wasn't the case for Nikon.