Nintendo began it's days as early as 1889 when it was founded by
Fusajiro Yamauchi
nin-ten-do (Kanji characters) can mean 'Leave luck to Heaven' or 'Deep in the
mind we have to do whatever we have to do'. The most common reading is 'Work
hard, but in the end it is in Heaven's hands'
Yamauchi, an artist and craftsman, started making playing cards (it still
seems to live on today with the Pokemon cards) painted with a scheme of symbols:
for example, a deer, the wind, a chrysanthemum, a boar, the moon etc. One of the
most popular games was matching flowers in order to make packs , but could be as
complex as Bridge, and it was taken as seriously.
Nintendo's first shops were in Kyoto and Osaka and its business remained
small and only modestly profitable, but increased when the flower cards began to
be used for gambling.
In 1907 Yamauchi expanded his business and Nintendo became the first Japanese
company to manufacture Western-style playing cards. He also started distributing
the cards in cigarette shops all over Japan.
Sekiryo Yamauchi (Married Fusajiro's daughter
Tei) became Nintendo's second
president in 1929
In 1933, he established a joint-venture corporation called Yamauchi-Nintendo
and in 1947 created a distribution company called Marufuku to sell new varieties
of modern, Western-style playing cards (pinochle and poker decks) with fancy
backs.
In 1949 Hiroshi Yamauchi (Sekiro's grandson) became Nintendo's third
president and changed the name to Nintendo Karuta (Nintendo Playing Cards) in
1951.
In 1953 Nintendo began manufacturing the first plastic-coated cards in Japan
and in 1959 made its first licensing agreement with Walt Disney. By doing this
and selling the cards in larger department and toy stores the sales shot up to a
record 600,000 packs that year.
Nintendo dropped the word Karuta and became NCL (Nintendo Company, Ltd.) as
he took the company public.
The first product launched by the new company was a line of individually
portioned instant rice. It was a dismal failure. Yamauchi then opened a 'love
hotel' with rooms rented by the hour. He also started a taxi company, but soon
closed that and the hotel. He then decided that Nintendo's roots were in
entertainment, and should stay that way.
An employee, Hiroshi Imanishi, had the task in 1969 to create a department
that would set Nintendo on its new course. It was called simply 'Games' and
Gunpei Yokoi was in charge of the projects. Gunpei came up with Nintendo's first
toy, the Ultra Hand (a clasping extension of the hand). It sold in 1970 and was
a success. From then on, Yokoi was to come up with inventions.
He invented the 'Ultra Machine' , the 'Ultra Scope' and the 'Love Tester'.
With the help from Masayuki Uemura who Yokoi recruited from Sharp they
developed a Beam Gun game. They later used that technology to open up a range
for laser shooting clay pigeons. The first range opened up in Kyoto in 1973. In
1974 came 'Wild Gunman' and these image-projection-system games were exported to
America and Europe.
The sales collapsed when Japan and the rest of the world encountered oil
shortages and economic recession that almost led to Nintendo's downfall.
They had to do something fast and decided to team up with Mitsubishi to build
a Video-gam
e system and, in 1977, Nintendo entered the home market with the
unveiling of Color TV Game 6, which played six versions of light tennis. It was
followed by a more powerful sequel, Color TV Game 15. Nintendo had quietly
entered the world of audio-visual entertainment and consumer electronics.
Gunpei got an idea from the booming electronic Calculator market. He thought
that why not make a game using this technology with components from Uemura's old
company Sharp. Soon after in 1980 the first Game and Watch was born. The problem
was that many of these Game and Watches in circulation were illegal bootlegs.
The first real million sellers were Donkey Kong and Popeye. Otherwise these
games were relatively unsuccessful and Game and Watch was dissolved in the
summer of 1985, although some appeared later on.
Nintendo now also started getting involved in Arcade games and with the help
of Shigeru Miyamoto, an artist, who invented Donkey Kong, Nintendo had their
first super smash hit in 1981. Coleco got the rights to use Donkey Kong in
America and MCA Universal tried unsuccessfully to sue Nintendo for infringement
on copyright for the movie King Kong.
In 1982 Nintendo bought the franchise to open up the entertainment
centre/restaurant Chuck E. Cheese in Japan, where Nintendo could show of its
latest technology. They did very well.
In 1983 Nintendo launched the inexpensive Famicom, a Home Videogame Computer
with cartridges. After a few problems initially it turned out to be hugely
successful. This is when Yamauchi saw how Nintendo's emphasis would conceivably
switch from hardware, with its limited market, to software, whose market was
without limits. Nintendomania was beginning and Yamauchi was raking in more
money than ever. It wiped out all the competitors at that time (Atari 2600,
Commodore Max, Intellivision, MSX, Sega SG-1000 etc.). Yamauchi later initiated
a licensing program for other companies to create games for Nintendo consoles.
This also proved very successful.
Nintendo, trying to get into the American
market launched the AVS (Advanced Video System) in 1984, but unfortunately was a
flop. They then redesigned it, took away the keyboard, revised the controllers
and made the Game cartridges slide in the front instead of the top. They also
changed its name to NES (Nintendo Entertainment System) and it was launched in
New York at Christmas 1985. After a slow start it became a huge success and by
1990 there would be an NES in one of every three American homes (more than 30
million units) and in 1992 Nintendo had sold more than 75 million systems in
Japan and America alone.
Between 1985 and 1991 Miyamoto produced eight 'Mario' games and an astounding
60 to 70 million were sold, thus making him the most successful game designer in
the world. Super Mario 3 went on to outsell any video game in history, and
grossed more than $500 million. One of his secrets was to work with professional musicians, as music
was as important as the game itself.
Nintendo launched its first magazine, 'Nintendo Power' in January 1989 and
also had its own television shows like: The Super Mario Bros. Super Show,
Captain N: The Game Master and Super Mario World. In May 1993 Nintendo released
its first Hollywood feature film played by Bob Hoskins (Apparently Tom Hanks had
accepted the role for $5 million, but that was too expensive for Nintendo).
Unfortunately Super Mario Bros. was a failure.
Gunpei
Yokoi and his 45 man R&D 1 team came up with a device that married
the NES and Game & Watch. It was the Game Boy and was launched in 1989.
40,000 units were sold in the first
day in America alone and part of its success
was due to the game 'Tetris'. Nintendo finally secured the right to sell
'Tetris' after a fierce battle with Atari and Maxwell Communications. The game
was Invented by a Russian Mathematician Alexey Pajitnov, who, although it was
one of the best selling games ever, didn't get a penny from it. It all went to
the Russian Academy of Science. The name 'Tetris' came from the Greek word of
four- TETRA. In the end 100 million Game Boys were sold.
In 1989 23% of all toys was spent on Nintendo products and of the 30
top-selling toys in America 25 were Nintendo or Nintendo-related.
The first real threat to Nintendo's Dominance came from the underestimated
Sega. It was the 16-bit Genisis and was launched in America in 1990. Sonic the
Hedgehog became its big seller. Nintendo responded and launched the Super NES
(or SNES) in 1991. Although good sales it never enjoyed the dominance of the NES.
This battle was also good for the software licences, who could play one company
against the other. This 'War' opened the market for others. Sony announced in
the summer of 1991 that it was going to launch the PlayStation, which instead of
game cartridges that cost $12-$16 each would have CD:s that would only cost
$1-$2 each.
1992 was Nintendo's most successful year yet with sales in America topping
$4.7 billion and the Super NES was selling at a rate of twelve units every
retail minute, or one in every 5 seconds. Nintendo's stock soared and the
company reached nr. 86 on Business Week's Global 1,000 and was worth $14.56
billion. Nintendo had sold 114.2 million hardware systems to 40% of all the
homes in Japan, 33% in America and a growing percentage in Europe. This included
64.2 million NES units, 32.2 million Game Boys and 17.8 million SNES systems. It
made more money net than IBM, Microsoft, Apple & all movie studio's
combined.
In the Autumn of 1993 Nintendo launched the gateway system, a multimedia
system for captive audiences in planes, hotels and ships.
1995 Nintendo with Gunpei Yokoi released an innovative yet odd 3D concept
system called Virtual Boy. Unfortunately this was not a success. Because of this
Gunpei decided to leave Nintendo and start his own toy company called Koto Co.
Unfortunately he was killed in a car accident in October 1997.
The PlayStation was originally designed to have a cartridge port that would
accept SNES cartridges as well as its CD:s. However this never happened and in
the autumn of 1995 it was launched. Nintendo put out its N64 a few months later
with the help of the special effects company, silicon graphics .
Today the three big (Nintendo, Sony and Sega) are still battling it out.
Nintendo with its upcoming GameCube, Sega with its Dreamcast and Sony with the
PlayStation 2. Microsoft has also announced its entry with its X-Box.