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Nintendo History Essay

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Part I - Gaming Console Industry Pre-Xbox
Video gaming: A Brief History
Atari pioneered the video game industry in 1971 with a title called Pong, which was sold as an arcade game for $1,200 each. The console market did not take off until 1977, when Atari 2600 was launched (Lipson, 2009) and this became the first generation of consoles. In the videogame industry, consoles are primarily stationary “boxes”, which require a monitor or television set for use. Known as consoles or platforms, these devices are standardized computers tailored for gaming and produced by a single firm. The term “generations” is meant to define “chapters” in the industry denoted by a series of console launches with significant technology improvement compared to the previous launches (Exhibit 1).
The key metric for technological progress in video …show more content…

Its first U.S. console, released in 1985, was the Nintendo Entertainment System (“NES”) and was the first major video game platform to achieve global success. Nintendo experienced its golden era in early 1990s, becoming the top player in both home and handheld consoles.
However, Nintendo’s lead was severely diminished in the fifth generation era, where it lost to Sony due to its inability in adapting to the shift in gamer demographics. The average age of gamers had gone up; however, Nintendo’s image was still very much a “kid-friendly” game console, allowing Sony to capture most of the older gamers. Sales were down from 50M units in the Super NES console line to 30M in the Nintendo 64 console line, Nintendo’s product in the fifth generation. Nintendo was also disadvantaged by its higher royalty charge to software developers, resulting in lower number of game titles being produced. In the sixth generation, its product Nintendo GameCube continued to challenge PlayStation 2 (“PS2”) and eventually

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