History of Nintendo: 1889 to 1999

All facts, figures, and information contained within this article are accurate as of November 1999. Nothing has been updated since then, however.

l The Introduction

What company has a brand name that almost became generic? What company has a character that is recognized by more children than Mickey Mouse? What company has a name that loosely translates to "heaven blesses hard work"? What company actually was founded in 1889, although its current-day industry only has been around for two decades?

If you answered "Nintendo," you are correct. Founded in 1889 by Fusajiro Yamauchi, the company began by manufacturing "Hanafuda," which is a term for Japanese playing cards. It continued this operation for the first half of the 20th century, slowly expanding and increasing its resources. In 1963, Nintendo Co., Ltd. got into the games business. By the mid-70s, it started researching and developing its entry into the interactive entertainment arena.

In 1979, Nintendo started an operations division for coin-operated video games. In 1980, it started selling the Game & Watch product line and established its American headquarters. In 1981, it developed and distributed the Shigeru Miyamoto-developed Donkey Kong game. In 1983, the Famicom ("Family Computer") was released in Japan, and the American version was released in late 1985. The rest, as they say, is history.

l The Players

l The Characters

l The Systems

Game & Watch

The Game & Watch product line was developed internally by Nintendo's legendary Gumpei Yokoi. The Game & Watch series was launched in April 1980 and was discontinued in September 1991. Game & Watch is a simple device that not only had a game but also had a fully functional clock and alarm running on a LCD screen. Many different models were created throughout the years, including Silver Series, Gold Series, Wide Screen, Multi Screen, New Wide Screen, Tabletop, Panorama, Super Color, Crystal Screen, and Micro Vs. In all, there were 59 Game & Watch games released. Game & Watch has experienced a resurgence recently thanks to Game & Watch Gallery's release on Game Boy.

Nintendo Entertainment System (NES)

Known as "Famicom" (Family Computer) in Japan, Nintendo's first console made its debut in 1983 in Japan and in 1985 in the U.S. It sold 500,000 copies in its first two months in Japan. For its American debut, Nintendo desperately tried to get a partner for the system's release and had trouble convincing retailers to carry the product after the "great video game crash" of 1984. In fact, it even tried to get Atari to help market the system. Instead, Nintendo opted to go it alone.

After a successful late 1985 test-market debut in New York, with about 90,000 units sold, the NES enjoyed a nationwide launch in 1986. The company hired Worlds of Wonder (maker of Teddy Ruxpin and Laser Tag) to help market the product. The system debuted in two varieties: One, a $249 bundle with R.O.B., the light gun, and three games (Super Mario Bros., Duck Hunt, and Gyromite). Two, a $199 bundle with Super Mario Bros. Super Mario Bros. went on to sell over 40 million copies worldwide.

In 1986, two competitors entered the market. Sega released its Master System and Atari released its 7800. By the end of the year, Nintendo emerged as the clear market leader, outselling its competition by a ten-to-one ratio. In 1987, the NES had become the number one toy in America. The company also released The Legend of Zelda, which became the first new generation home video game to sell over one million units.

By the time 1988 arrived, Nintendo had steamrollered the competition. There were more than three million NES systems in American homes. Companies such as Atari took Nintendo to court, claiming that Nintendo had a monopoly on the market. The NES game library grew to over 60 titles, and Nintendo owned 85% of the video game market worldwide.

The exponential growth continued. In 1989 alone, Nintendo sold over 9 million systems and 50 million pieces of software. In 1990, Nintendo sold another 7.5 million systems and another 70 million games. Nintendo had successfully placed the NES in over 25% of American homes. The climax of the system's life cycle also occurred in 1990 when Super Mario Bros. 3 was released, becoming the best-selling, non-pack-in game of all time. It was 1991 when the NES started its decline stage. Only 2.7 million systems were sold this year.

The NES used to be the most popular video game system of all time—that is, until Game Boy eclipsed it. Estimates place the NES at over 70 million units sold worldwide. Surprisingly, Nintendo continued to support the NES sporadically until 1994. Now the NES is considered the spark that revitalized an entire industry.

Game Boy (GB)

Despite competition from color handhelds for years, Gumpei Yokoi's Game Boy has withstood the test of time and has morphed into the most popular video game system ever. Originally released in 1989 at a price of $149.95, Game Boy enjoyed immediate success despite its black and white screen handicap. Much of Game Boy's early success is attributed to one game: Tetris. Super Mario Land, along with a handful of other games, also was released and went on to become the best-selling, non-pack-in Game Boy game of all time, with over 14 million copies sold.

After years of continued growth and success, with multi-million unit sales each year, Nintendo released the Super Game Boy accessory in 1994 that enabled gamers to play Game Boy games on the Super NES. With Game Boy interest waning, Nintendo tried to renew interest in its handheld. First, in 1995, it introduced the "Play It Loud!" series of colored Game Boy systems. Then in 1996, Nintendo introduced Game Boy Pocket, a smaller version of the original unit. Sales improved but eventually tailed off.

In 1998, however, Game Boy experienced a renaissance in the word's very definition. Starting with the summer introduction of Game Boy Camera and Printer, Nintendo brought new life to interactive entertainment's longest-running system. Finally, in November of 1998, Nintendo released what the world had been asking for years: a Game Boy with a color screen. In addition, Pokémon became the killer application for the next generation of Game Boy players.

To date, Nintendo has sold over 80 million of the various Game Boy units worldwide. Game Boy Color sold over two million units in its first six months on the U.S. market. And Game Boy shows no signs of slowing down.

Super Nintendo Entertainment System (SNES)

A year after Nintendo's 8-bit NES peaked, the 16-bit Super NES was released into the American market. Called "Super Famicom" for its Japanese release in 1990, the Super Nintendo hit the U.S. shelves in late August of 1991. It had a retail price of $249.95 and came with two controllers and Super Mario World. Arriving almost two years later than Sega's 16-bit Genesis, analysts are stunned when the Super NES does not dominate the Genesis. Nevertheless, the SNES is a success.

Just as Sega and Sonic the Hedgehog started to pull ahead, Nintendo scored a major coup in 1992 and got a one-year exclusive agreement with Capcom to bring the most popular arcade game in a decade, Street Fighter II, to the Super NES. In addition, high-profiles games such as The Legend of Zelda: A Link to the Past and Super Mario Kart were released. This shifted momentum to Nintendo's side. Nintendo also released the Super Scope and Mouse accessories this year.

Unfortunately, 1993 was a down year for Nintendo. The company did release Star Fox, which was based on the breakthrough Super FX chip. On the other hand, Nintendo did not have many blockbuster hits and was lambasted by the gaming public and press for forcing Mortal Kombat to be censored. Sega strengthened its hold on the 16-bit market.

Nintendo was out to regain its market share in 1994. First, Super Metroid was released to rabid fans everywhere. Then Nintendo shocked the world by allowing Mortal Kombat II to arrive on the Super NES uncensored. Finally, it surprised everyone with Donkey Kong Country, a game that had the looks to compete with Nintendo's new technological threats. With the runaway success of Donkey Kong Country, Nintendo was able to take the 16-bit lead back from Sega.

From 1995 through 1997, the Super Nintendo's popularity slowly declined. The company tried to release some blockbusters each year—most of which were based on the ACM graphics technology first used by Donkey Kong Country. The system reached its peak in 1994, though. The Genesis/Super Nintendo war is considered legendary, but the Super NES emerged as the winner, if only because Nintendo supported the 16-bit generation longer than Sega. In the end, nearly 50 million SNES units were sold worldwide.

Virtual Boy (VB)

As the old adage goes, everyone makes mistakes. The Virtual Boy was Nintendo's mistake. Released in 1995 in both Japan and the U.S., at a price of $179.95, this "virtual immersion" system was met with lukewarm critical and retail receptions from the beginning. Designed by Gumpei Yokoi, creator of Game Boy, the Virtual Boy utilized two screens, one for each eye, in order to provide its user a stereoscopic view. Additionally, the system had an annoying quirk in that all images were red on a black background.

Because it had trouble finding its niche in the market and was too cumbersome to be considered portable, the Virtual Boy failed miserably. Less than two years after its release, every major video game retailer in America discounted the Virtual Boy. That does not even say anything for the massive discounting that took place in Japan. Nintendo took huge loses on the system, as the unit could be found for $25 and games could be found for $10 each.

No one is quite sure how many Virtual Boy units were or were not sold. All that has been said is that the system fell far below Nintendo's sales expectations.

Nintendo 64 (N64)

It was once said that never before has a system been so loved, so hated, so hyped, or so misunderstood. Three years after its debut, Nintendo 64 aptly fits that description. Nintendo's most uncertain system launch in history played out much like a soap opera.

Long before N64 hit the market, the system was clouded with criticism and confusion. Announced only two years after the Super NES was released, "Project Reality," as it was called then, promised Jurassic Park-like graphics. Years later it did not quite live up to that promise. Also, in May 1994, Nintendo announced that its new system would be cartridge-based rather than CD-based like Sega and Sony's forthcoming systems. This brought much criticism from the video game industry.

A little over a month later, Nintendo announced the first official name for its system, Nintendo Ultra 64. Throughout the rest of 1994 and into 1995, Nintendo periodically made announcements concerning its much-hyped, but eventual lackluster, "Dream Team." Then, in May 1995, Nintendo announced the American release of its 64-bit system would be delayed from fall 1995 to April 1996.

After more hype and more announcements throughout '95, Nintendo dropped the ball again on February 1, 1996. Nintendo ran a full-page advertisement in USA Today that stated, "On September 30th, Dinosaurs Will Fly!" The announcement was another major delay for the system, but Nintendo also changed the American name from "Nintendo Ultra 64" to "Nintendo 64" on this day. A final announcement pertaining to the system was made on August 19, 1996. Nintendo announced that the system would be available on Sunday, September 29th, instead of Monday. But, more importantly, Nintendo lowered the system's retail price from $249.95 to $199.95 before it even came out.

After all the trials and tribulations, N64 was finally released in Japan on June 23, 1996 and in the U.S. on September 26, 1996—yes, a few days early. Nintendo sold 300,000 units the first day in Japan and 350,000 units the first weekend in the U.S. To say N64 was a success in America is an understatement. (Its fortune in Japan is another story that will not be discussed here.) N64 was nearly as sought after and popular as Tickle Me Elmo. In fact, a record-breaking 1.6 million systems were sold to consumers by Christmas. Furthermore, six of the ten best-selling video games of 1996 were on N64.

In 1997, Nintendo experienced a downturn. Marred by few and far between releases, not to mention delays to big-name games, N64 started to fall far behind Sony PlayStation in the systems race. Although GoldenEye 007 was released this year, most of its success, oddly enough, came in 1998. That left Mario Kart 64 and Diddy Kong Racing as the big titles for '97.

It was a much better year in 1998 for Nintendo. With the ever-lasting popularity of GoldenEye 007, along with the eventual release of several key titles, Nintendo improved its position in the market. Finally, in November 1998, Nintendo released The Legend of Zelda: Ocarina of Time, which was the most anticipated video game in history. It broke all records—both for presales before and for quantity sold after the game came out. Despite all this, Nintendo hardly closed the gap on Sony. Nevertheless, Nintendo enjoyed much success in a booming industry.

It is now 1999. The year is almost over as you read this. Nintendo has parlayed its success in the prior year with quality releases throughout this year. It also has a big ape waiting in the wings. Time will tell how well N64 does in 1999, which is expected to be its peak year. But as of April 1999, Nintendo has sold almost 25 million N64 units worldwide. Not too shabby, but obviously hurting in the areas of the world other than the U.S. Game-wise, on a worldwide basis, about 9 million copies of Super Mario 64, about 7 million copies of GoldenEye 007, and about 6 million copies of The Legend of Zelda: Ocarina of Time have been sold.

l The Developers

l The End

I hope you found this essay of Nintendo's history fascinating, enjoyable, and insightful. For a much more thorough investigation into the Nintendo empire, read Game Over by David Sheff and Andy Eddy. It's a superb book.