Gaming Industry Part-2

We are back with the second chapter of the Gaming Industry. This is the story of a Japanese company who jumped into the gaming market and is still playing strong.

Kyoto, the Japanese based Nintendo began as a playing-card manufacturing company. It entered the home video game market in Japan in 1983 after it started its entry into electronics in 1970s with its Famicom system.

Nintendo focused on producing fewer, but higher quality games. The Famicom could display 52 colours at a resolution of 256 *240 pixels, superior to the competition of the day. Famicom cost 50% less than the closest competitor. A security chip was installed into every console to ensure that only Nintendo approved games could be played on the system.

Atari filed a number of lawsuits against Nintendo complaining of monopolistic practices.
But by 1990, Nintendo had captured 90% of the US home console market. It had big hit titles like Super Mario Bros. and The Legend of Zelda. In the meanwhile it faced competition from another Japanese console maker – Sega who had also successfully entered US market. The marketing and relatively softer licensee policies of Sega paved the way for an extremely competitive market.

But the big war was just about to begin. By the mid 1990s Sega was the least of Nintendo’s worry as Sony the Big Electronics player entered the video Game market with a bang- Playstation.


~Naineet

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Gaming Industry

The Video Gaming Industry has experienced significant changes in its 30 years old industry. The industry has seen big changes right from the days when Atari was providing household games at US. We have tried to provide you with an overview of the history of Video Games through our present article. The first of the articles in the series talks about first Gaming Company- Atari

Atari: It was the first in the gaming industry. It introduced a home version of the ball and paddle game of Pong in the year 1975. Atari sold 150,000 copies of Pong in the first year itself.

Its competitor Fairchild Channel F produced the first gaming console. Atari followed suit with its 2600 VCS (Video Computer System). Each of its cartridges was retailed for $25-$30. By 1979, many other gaming and toy companies entered the home console market – Mattel, Coleco, RCA and Philips Electronics. Atari represented two - thirds of the home console market in the United States. The home versions of arcade games such as Space invaders and Asteroids were a hit. It had turned into a $3billion business by 1982.

The industry started collapsing by 1983. The market was full of multiple consoles and poor quality software. Atari developed E.T a game based on Steven Spielberg’s hit movie by the same name. It was the last nail in the coffin. Atari posted a $536 million loss and the company was sold at a substantial discount in 1984 to Jack Tramiel (who named his company Atari Corporation).

The market was all silent for several years after the collapse until Nintendo came. Just be patient for the next article which would tell the story of how Nintendo took the US market by storm………….

~Naineet

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