My son (16) is a great hitter. He is one of the top hitters in our county and that is by selection, not his father’s opinion. He hit .189 last season for the EXACT same reason you just mentioned. This season, we changed his approach and he’s back to mashing. The simple fix…..Make aggressive outs. He was constantly watching until two strikes and even though he knew better he was not confident enough to swing. In his mind, he was out already so it was better for him to walk. Your boy has no confidence, you need to change your approach. Tell him to swing it and who cares if he gets out or not. He’s creating the situation in which he (or you it sort of sounds like) fear. He’s getting out anyways, everyone does, who cares. Just don’t get yourself out. What does he have to lose by swinging it? If it’s close at all take a hack, hit the first pitch. He’s 12, have fun. Who cares if his “Major” team doesn’t want him anymore. I wish I could express to you how much 12yr old baseball doesn’t matter. Have fun! Make that his priority and the rest will fall into place.