Nintendo playstation - The breakup That Forever Changed the Video Game World.

Nintendo and Sony once collaborated...

‍It all started in the late 80s, when Ken Kutaragi (Sony) offered a chip to help improve the sound quality of Nintendo...

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He designed the sound chip in secret, while working for Sony...

He almost got fired for that, however, Sony’s president, Norio Ohga, recognized the potential of his idea and decided to support his intrapreneurial spirit.

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The sound chip led to a deeper collaboration between Sony and Nintendo‍

Who had foreseen the transition from cartridges to CD-ROMs. Sony, with its proven experience in managing large file sizes through CD-ROM technology, was the ideal partner.

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The partnership resulted in the first incarnation of the Playstation.

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Nintendo's Change of Heart

They wanted to maintain sole control over game licensing for the add-on, while Sony sought a share in the licensing profits and wanted their name on the console. Nintendo tried to work a way around this problem, but of course Sony refused.

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Yamauchi realized that he could be developing a rival rather than a partner.

Nintendo made a secret deal with Sony's arch-nemesis, Philips, leaving Sony executives surprised and blindsided, which ultimately led to the termination of the partnership at CES 1991.

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Sony Kept that Fighting Spirit Burning

They took a significant step by establishing Sony Computer Entertainment, with Kutaragi at the helm. Over the years, leading to the launch of the PlayStation, which truly marked a turning point.

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Three years later... playstation was born in 1994, and it was a hit.

Sony made a wise decision by making it easy for developers to create games for their console fostering a developer-friendly environment, the programming language C proved useful. It was more powerful and cheaper to produce, because CD-ROMs opened doors that were unfeasible in the cartridge market.

In retrospect

• Nintendo's deal with Philips went badly, and it also lost its market leadership.
• Sony became the new market-crowned head.

Nintendo made a monumental strategic error and even standing as a dominant force, it had unintentionally produced its most formidable rival, bringing in a new era of gaming that was characterized by the popularity of the PlayStation.

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The most expensive item of video game memorabilia ever publicly sold.

Long after the PlayStation's 20th century fate had been sealed, a prototype of the machine was sold at auction for US$360,000 in 2020. Its owner-at-auction said that he had been privately offered $1.2M for the device.

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Video game

• Number of Players: Over 3.3 billion people worldwide play video games.
• Mobile Gaming Dominance: Mobile games accounted for 49% of GLOBAL MARKET REVENUES in 2023.
• Industry Size Comparison: The gaming industry is larger than the combined revenue of movies and sports.
• Women Gamers: Female gamers now represent 46% of all gamers worldwide.

The industry is projected to continue growing, with an estimated market volume of $691.31 billion by 2029.