How Nintendo Saved the Video Gaming Industry

It’s the early 80’s, home consoles are starting to replace arcade games as the premium way to play video games. Manufacturers are flooding the gaming market with shoddy ports and extremely bad games. Distrust in video game manufacturers was increasing. Now its 1983. The North American video game market has just crashed. Big companies like Atari are now suffering huge losses. Yearly revenues drop from $3 billion to $100 million. Later that year in Japan, Nintendo releases its first home console, the Family Computer, known as the Famicom, to all of Japan. By the end of the year, it becomes the most popular console in Japan. Two years later Nintendo releases the Famicom to the United States, known as the NES in western countries. It was so successful that to most, it was considered the first home console, despite several others coming out well before it. One of the many problems that helped collapse companies like Atari, was that third-party developers had too much freedom. Early consoles were made with common parts, allowing for companies to make converters that allowed for people to play games on consoles that they weren’t designed to be played on. The lack of control about what is played on the console allowed for an influx of bad games to flood the market. Nintendo fixed this by controlling what games were available for the NES. This enforced a certain level of quality to there games, increasing trust in the medium. When you bought a Nintendo game, it had the seal on it, so you knew what you were buying. This tradition still exists today. Whenever you buy a game for Nintendo, Xbox, or Playstation, the game has the company logo on it.

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