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History of Nintendo
Responding to technological change
Fusajiro Yamauchi (1889 – 1940)
 Founded in 1889 to sell playing cards.
 Most playing cards were illegal in Japan
 They had been used for gambling
 Hanafuda cards were legal, but not very popular
 Mr.Yamauchi decided the problem was quality
 Color printing was pretty primitive
 Solved it by
hand-painting the cards
花
札
山
内
房
治
郎
Business wisdom
Fusajiro Yamauchi (1889 – 1929)
 When more card games became legal, was positioned to
sell them.
 Stayed in
charge until
he was 70,
in 1929.
 Replaced by
his son in
law Sekiryo
Kaneda
Sekiryo Kaneda (1929 – 1949)
 Kept the company running throughWWII and the US
occupation.
 Had a stroke in 1949 and died soon afterwards.
 Left the company to HiroshiYamauchi, his grandson.
Hiroshi Yamauchi (1949 – 2002)
 Born 1927.
 Too young to fight in WWII, so he worked in a factory.
 Inherited Nintendo when his grandfather died in 1949,
aged 21.
 Dropped out of law school to manage
the business.
 Wasn’t taken seriously by the workers
until he fired those who didn’t do their
jobs.
山
内
溥
Perception of cards
 Yamauchi brought the idea to use plastic-covered cards.
 The public saw cards as (illegal) gambling
 Yamauchi made a licensing deal with Disney (1959) for their
characters.
 Provided an instruction booklet for card games with their
cards.
 Changed the perception of cards to family entertainment.
Business wisdom
The limits of the card business
 Yamauchi visited the United States Playing Card Company.
 He saw that the world’s largest playing card company is
still pretty small.
 He decided to diversify.
Business wisdom
Bad ideas
 Nintendo instant rice
 Nintendo taxi company
 Nintendo hotel
Business wisdom
Nintendo toys
 In 1966Yamauchi sawYokoi Gunpei, a maintenance
engineer, playing with a hand he created on his break.
 Yamauchi realized Nintendo had an important asset: the
card distribution chain.
 Instead of building a
completely new business,
diversify into toys.
 MadeYokoi Gunpei a
toy designer.
Business wisdom
Video games (1977-now)
 In 1972 Atari was opened to sell video game systems.
 Yamauchi decided to pursue this new opportunity in
1974.
 In 1977, Nintendo released its first video game: ColorTV-
Game 6.
 Japan-only
 Huge success in Japan. Of course,
the game was primitive by our
standards.
Business wisdom
Expansion to the US market
 US is a bigger, richer market
 First few games they tried to sell in the US failed
 They got their first US hit, Donkey-Kong, in 1981
 One of the first
platform games
Handheld games
 Yokoi Gunpei saw on the train a bored businessman
playing with his calculator (1979).
 Starting in 1980, Nintendo
released small handheld games
in black and white (the Game &
Watch series).
 Each device could only do one
game.
 Replaced by the Gameboy in 1989.
Business wisdom

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History of Nintendo

  • 1. History of Nintendo Responding to technological change
  • 2. Fusajiro Yamauchi (1889 – 1940)  Founded in 1889 to sell playing cards.  Most playing cards were illegal in Japan  They had been used for gambling  Hanafuda cards were legal, but not very popular  Mr.Yamauchi decided the problem was quality  Color printing was pretty primitive  Solved it by hand-painting the cards 花 札 山 内 房 治 郎
  • 4. Fusajiro Yamauchi (1889 – 1929)  When more card games became legal, was positioned to sell them.  Stayed in charge until he was 70, in 1929.  Replaced by his son in law Sekiryo Kaneda
  • 5. Sekiryo Kaneda (1929 – 1949)  Kept the company running throughWWII and the US occupation.  Had a stroke in 1949 and died soon afterwards.  Left the company to HiroshiYamauchi, his grandson.
  • 6. Hiroshi Yamauchi (1949 – 2002)  Born 1927.  Too young to fight in WWII, so he worked in a factory.  Inherited Nintendo when his grandfather died in 1949, aged 21.  Dropped out of law school to manage the business.  Wasn’t taken seriously by the workers until he fired those who didn’t do their jobs. 山 内 溥
  • 7. Perception of cards  Yamauchi brought the idea to use plastic-covered cards.  The public saw cards as (illegal) gambling  Yamauchi made a licensing deal with Disney (1959) for their characters.  Provided an instruction booklet for card games with their cards.  Changed the perception of cards to family entertainment.
  • 9. The limits of the card business  Yamauchi visited the United States Playing Card Company.  He saw that the world’s largest playing card company is still pretty small.  He decided to diversify.
  • 11. Bad ideas  Nintendo instant rice  Nintendo taxi company  Nintendo hotel
  • 13. Nintendo toys  In 1966Yamauchi sawYokoi Gunpei, a maintenance engineer, playing with a hand he created on his break.  Yamauchi realized Nintendo had an important asset: the card distribution chain.  Instead of building a completely new business, diversify into toys.  MadeYokoi Gunpei a toy designer.
  • 15. Video games (1977-now)  In 1972 Atari was opened to sell video game systems.  Yamauchi decided to pursue this new opportunity in 1974.  In 1977, Nintendo released its first video game: ColorTV- Game 6.  Japan-only  Huge success in Japan. Of course, the game was primitive by our standards.
  • 17. Expansion to the US market  US is a bigger, richer market  First few games they tried to sell in the US failed  They got their first US hit, Donkey-Kong, in 1981  One of the first platform games
  • 18. Handheld games  Yokoi Gunpei saw on the train a bored businessman playing with his calculator (1979).  Starting in 1980, Nintendo released small handheld games in black and white (the Game & Watch series).  Each device could only do one game.  Replaced by the Gameboy in 1989.