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How Nintendo Tried To Embarrass Sony And Created Their Biggest Rival

It was supposed to be an ideal matchup of Nintendo and Sony to develop a new console. Instead A new interview talks about how Nintendo looked to embarrass Sony but ended up creating their biggest rival.

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JaguarEvolved181d ago

"Nintendo changed its mind about the deal and effectively pushed Sony into giving up on the project. After that Kutaragi persuaded the head of Sony
to seek revenge by creating the original PlayStation and taking on Nintendo in the console business."

Nintendo's decision caused 3 failed Nintendo systems and 4 successful Sony PlayStation consoles. I know Nintendo regrets backing out of the deal with Sony

showtimefolks181d ago

Think about it playstation exists because Nintendo did something and Xbox exists because Sony said something

It's kind of ironic

naruga181d ago (Edited 181d ago )

Nintendo are the best game makers , i give this to them ....BUT i also give them the title of the most douchbag game company out there ....they are the Apple of japan ...they make far overpriced systems and things just because they r Nintendo and think their prestige as game company is bigger than its competitors....At least history revenged them for their megalomania , as the most legendary Non-First party games were released on PS, their direct competitor ...Sony as far more humble , open minded and consumer friendly company attracted the best talents , released on its consoles some of the best games ever created and finally dominate the video game field as they should be

showtimefolks181d ago

Nar

So true they are selling card board box and calling it genius and innovation

oof46181d ago

@michellelynn0976: Kind of hard for Sony to hold Nintendo hostage when it was Nintendo who agreed to go into a deal with Sony to make a disc based console. Nintendo just didn't want to give Sony a piece of the profits, in regards to games sold.
In order to get out of that deal, Nintendo went behind Sony's back and signed with Philips.
https://www.nytimes.com/199...

Segata181d ago

Xbox exists because of SEGA. WinCE on DC and then almost making Xbox BC with DC titles. They used DC's on focus tests and nearly put VMU's in the controllers.

Magnetar181d ago

Actually MS made the xbox because Sony announced the ps2, saying it would run Linux and be capable of doing what a pc can. MS seen this as a threat to their market so they reacted by making the xbox. IGN unfiltered had Seamus Blackley on this month and he talks about how it happened.

+ Show (4) more repliesLast reply 181d ago
FallenAngel1984181d ago

“Nintendo was surrendering total control over what could be released on the PlayStation”

So Nintendo should’ve just let Sony have full ownership and profits over the Play Station’s games?

saoco181d ago

Sony wanted a piece not the whole pie. Sony also went to Sega of america, but Sega of japan was already deep into the development of Saturn and could not come to common grounds with sony

FallenAngel1984181d ago

Don’t try to spread misinformation. It’s already been documented everywhere that under their agreement, Sony would develop and retain control over the Super Disc format, with Nintendo thus effectively ceding a large amount of control of software licensing to Sony.

I’m not talking about Sega I’m talking about why Nintendo felt prompted to later turn down the deal in the first place. People like to say Nintendo made a bad decision but never consider why they made it in the first place.

Chevalier181d ago

Couldn't Nintendo have just restructured their deal like a normal company? What they did in terms of Japanese business is unheard of. To do what they did with no notice at a huge trade show to try to show up Sony was a huge loss of face. They literally burned the bridge when they didn't need to.

FallenAngel1984181d ago

Hiroshi Yamauchi was clearly not a very reasonable businessman and felt incredibly slighted by the wording of the contract. Nintendo's CEO decided that they had to fight what they percieved as a huge "insult" from Sony with a fiery "insult" of their own, which was clearly a bad idea in hindsight.

saoco181d ago

Nintendo were the biggest thieves. They reaped all the benefits while developers got crums.

Anyways, they definately could of worked a deal but nontendo was very greedy and arrogant.
One of the reasons ps1 was so successful is because Sony undercut Nintendo and sega by charging less for royalties.

FallenAngel1984181d ago

Nintendo and Sony did work out a deal in 1992 in which allowed Sony to produce SNES-compatible hardware, with Nintendo retaining control and profit over the games, but the two organizations never repaired the rift between them and by the next year, Sony had refocused its efforts on developing its own console for the next generation of consoles.

Realms181d ago

LOL. You do realize that Nintendo has made many shady deals in the past a large reason why so many third party developers abandoned them for years was because of how unfairly they treated them during the NES, SNES at the height of Nintendo's power. They where charging developers the cost producing and manufacturing the games they wanted published on their system along with very low royalties on games published on their system. At the time Nintendo had very little competition so they got away with it but karma is a bitch and it bit them in the ass first when Sega came along, then again when Sony got into the console space.

Nintendo has made many bad decisions but publicly embarrassing Sony has got to be one of their biggest which I bet they regret to this day because it motivated Sony to get into the console market effectively making them their biggest competitor and overtaking them as industry leaders.

FallenAngel1984180d ago

No shit Nintendo made a lot of business practices in the past. I’m just asking that people should consider the alternative of them going through this particular deal and the consequences that would’ve come from it.

+ Show (5) more repliesLast reply 180d ago
TallonIV181d ago

"3 failed Nintendo systems" yet Nintendo made a profit on all of its consoles as they don't sell them at a loss like Sony and Microsoft have. Try again.

showtimefolks181d ago

True but than again Sony and ms make a lot more from software side. Nintendo consoles before switch barely got any support and even switch is filled with ports

Prince_TFK181d ago

“Nintendo consoles before switch barely got any support ”

Tell me you aren’t serious.

PhoenixUp181d ago

And the entire reason the NES even exists is because of a fallout with Atari.

in 1983 Atari was supposed to sign a deal with Nintendo to help bring the Famicom to North America, but when they found Donkey Kong running on the Coleco vision and felt Nintendo broke the deal. Nintendo then decided to do their own thing and made the NES, and it was massively successful.

History repeated itself when a few years later Nintendo then chose not to help Sony make a CD-Rom system and Sony decided to start their own PlayStation, and it was massively successful.

blackblades181d ago

Wow didn't know that about atari, I knew about nintendo and sony through a history document on netflix or you tube. Gaming history is so interesting.

Knushwood Butt181d ago

The Famicon is the NES. I don't understand your story.

StonieWylder181d ago (Edited 181d ago )

It wasn't just Atari, it was the entire gaming market that gave the NES the spotlight (the US game market had crashed due to an oversaturated console market flooded with too many trash games)

Also the famicon is the NES.

PhoenixUp180d ago (Edited 180d ago )

@ Black

Yeah it almost happened. You can read up more on the collaboration here

http://www.atarimuseum.com/...
https://arstechnica.com/gam...

@ Knush

The Famicom is the Japanese edition of the system. The NES is the western edition of the system. Although they’re both the same system, both editions have various different hardware configurations to be labeled distinctly.

https://m.youtube.com/watch...

@ Stonie

I know the Famicom is the NES, however there are differences between these systems that it’s simple to label each edition of the same console differently.

http://nerdlypleasures.blog...
http://1morecastle.com/2014...
https://retrocomputing.stac...

Plus just because there was a crash didn’t mean it would’ve been smooth sailing for NES by default. Sega Master System and Atari 7600 also released during the 3rd generation and didn’t find much success. Nintendo had to work for its success rather than just presenting its system at a time consoles were losing relevance.

+ Show (1) more replyLast reply 180d ago
-Foxtrot181d ago

It's a nice thought in another alternative Universe...where would the Nintendo-Playstation be today? Would Uncharted still exist? Would we still have had Super Mario Galaxy? What new franchises would we have? What would Mario Kart or Smash bros look like with PlayStation characters?

Imagine a Zelda game being pushed to it's limit with the technology available? The things you wish you could see.

michellelynn0976181d ago

And the reason Nintendo said no was because Sony wanted Nintendo's franchises.

1Victor181d ago

Is that you moldybrain with a skirt? Or are you his twin sister

michellelynn0976181d ago

Not just that. It was their decision to stay with cartridge (N64), the poor marketing for the GameCube, The Wii beat the PS3, but the Wii U was just doomed. It was marketed horribly.

Mr_Writer85181d ago

@michelle

So Sony didn't beat Nintendo, Nintendo let Sony beat them....... Right...............

UCForce181d ago (Edited 181d ago )

Nintendo cut the deal with Sony and side with Philip. That caused Sony so pissed off and want a revenge by creating PS1 that humiliated Nintendo in first place. I’m sorry, but you defending Nintendo way too much. Nintendo made a huge mistake for backstabbing Sony then Sony rekt Nintendo for it. That’s call Karma. And i’m glad PlayStation is own league now.

Kryptix181d ago

It would have massively benefited Nintendo to have the games and the hardware that they could have acquired an almost monopoly like Nvidia vs AMD.

Perfect timing for the PlayStation as their hardware was vastly different to gain a lot of third party support due to the capacity of the CD. What developers couldn't do with cartridges would make projects go towards PlayStation. If PlayStation was another cartridge based system, I don't think it would be as successful as it is today because that's one thing that allowed devs to dream outside the box and create many different experiences.

For example, games like Metal Gear Solid, Final Fantasy 7-9, Gran Turismo would be heavily downsized due to memory limitations. Then came the PS2 which expanded much more and showed the way for the future of console gaming in terms of versatility and open-ended possibilities.

indyman7777181d ago (Edited 181d ago )

Lets face it Sony was destined to be big in the games business. A more business like explanation would be with out the melodramatic story of 'revenge' as a motive for getting into the business. I doubt they regret backing out, because they would just be a name brand and Sony would be the manufacturer AND the company collecting the loins share of royalties for publishing games on their consoles.

This article is not telling you about how Nintendo grew and dominate the handheld market every generation. Which they would have also shared with Sony. Or about the Wii which was at least second best selling console ever (so far). Nintendo is the company with the cash pile so they don't regret it. They regret not making the N64 and gamecube Disc based. They regret not making the WiiU like SWITCH or PS3.

SuperSonic91181d ago (Edited 181d ago )

The video game industry needed a platform holder that would champion the Third Party developer and stop the monopoly Nintendo established in Japan and America.
It was justice by destiny.
Sega got first dibs to crack Nintendo's industry monopoly with Sonic the Hedghog but Sony PlayStation delivered the totally made sure Nintendo will never again monopolize the industry.

Nintendos greed was their downfall.

Also PlayStation totally erased the stigma that video games are just for little children. Now Nintendo is relegatedto just making kiddie games and is now capped by PlayStation adult market domination.

rainslacker181d ago

Kutaragi didn't convince the head of Sony. Sony actually decided not to go ahead with the PlayStation.

That's when he took PS to Sony Computer Entertainment, and since they were a separate entity from Sony in structure, they decided to go ahead with the platform.

Segata181d ago

Gamecube made a profit every single year while MS and Sony did not in that era. Gamecube failed to sell big but they did make a bunch of money.

IamTylerDurden1181d ago (Edited 181d ago )

I don't blame Nintendo for wanting Sony's hardware manufacturing expertise. With Sony's excellence in consumer electronics they will always have the upper hand in hardware. Just look at the PlayStation, PS2, and PS4 and you can literally see the difference between them and other consoles. The size, form factor, functionality, it's all Japanese expert manufacturing. Nintendo i believe was a toy company and Microsoft is an American software company. Neither have the background in electronics that Sony does.

Anyway. Thank you Nintendo, you created a monster.

demonicale181d ago

You don't think that Sony would've made their own console in the end?. It might've happened so who's to know if they stayed with them it would've changed much in the long run.

Big_Game_Hunters180d ago

I'm sure they regretted partnering with them in the first place considering how greedy Sony was getting with that deal.

+ Show (12) more repliesLast reply 180d ago
SuperSaiyanGod41181d ago

I grew up on Nintendo consoles and Mario and Zelda but after playing ff7 and ff8 and twisted metal 2 and god of war and devil may cry and onimusha, syphon filter, Gran Turismo, legends of dragoons, metal gear solid, GTA, legend of legaia, and the list goes on, I became a huge Playstation fan because most of these games were exclusive to the Playstation platform and Sony was the only corporation taking risk on new ip's. That's why I still appreciate the Playstation brand because to this day they are the only corporation that continues to take risks on big triple a exclusives. Nintendo got great franchise's but most of them are sold because of the iconic names of their franchise's like Mario, Zelda, Metroid prime, super smash brothers, donkey Kong. I thank Nintendo for pushing Sony but I also thank Sony for not disappointing me every gen since the original PlayStation with the most diverse exclusive lineup of games.

IamTylerDurden1181d ago (Edited 181d ago )

Why Nintendo would want to go toe to toe with an untapped monster like Sony i have no idea? A world leader in consumer electronics with its hand in a multitude of ventures that could potentially benefit their gaming division. Movies, music, audio, optics, electronics, ect. Quite honestly, Sony has not incorporated their other talents into their gaming division nearly as well as one could've expected. I love Sony, i love PlayStation, but i can't imagine how well a company like Microsoft or Nintendo would've utilized such resources. Sony is performing great this gen, but if they were able to consolidate all that talent and utilize it for their gaming division they could absolutely dominate and potentially revolutionize the industry. I respect Microsoft and Nintendo's ability to get the most out of what they have. To achieve results by any means necessary.

SuperSonic91180d ago (Edited 180d ago )

Thanks indeed.
Without Nintendo there will be no PlayStation Domination.
I am eternally grateful to Nintendo.Was the catalyst of greatness.
Out of the bad came something good.
No pain No gain.

D3TH_D33LR181d ago

Wow this article was hard to read on my phone. Crap format.

Razzer181d ago

It is hard to read on my laptop too so just formatting all around.

Garethvk181d ago

FIxed it. Was in an area with bad connections and posted via phone.

Garethvk181d ago

Welcome. It posted and I could not get it to reload to get in and fix it when I noticed it was off. I was able to get in and get it started and finally reached staff who adjusted it. Went out to speak at a school today out in the boonies

iN_4G_form176d ago (Edited 176d ago )

You and Tristan Donovan offer a partial inaccurate telling. Nintendo’s public embarrassment of Sony at CES in 1991 served as a catalyst in the creation of PlayStation, it did not create PlayStation. Sega’s subsequent rebuff of Sony a year later (ex-Sega exec Tom Kalinski spoke at some length about it https://www.mcvuk.com/busin... , https://forum.rpg.net/archi... ) served as another catalyst.

What created PlayStation was Ken Kutaragi’s threat to then-CEO of Sony, Norio Ohga, that if Sony did not go it alone, he would leave Sony:

‘The Hollywood Factor’ -- “There was also Kutaragi, who actively pushed to set up the Sony Computer Entertainment company, even threatening to leave Sony if the games unit was not created.” https://books.google.com/bo...

“The opposition discouraged Mr. Kutaragi. ''I was very sad,'' he said. ''But I had a strong passion, so I decided to create my own space to make my vision a reality, even if that meant leaving Sony.'' But Sony agreed to set him up in his own company.”…''I told Ohga-san when we set up Sony Computer Entertainment in 1993 that someday our business would become a big business and influence our corporate betters in the same way that children influence their parents,'' he said.” https://archive.nytimes.com...

Ken Kutaragi was going to birth PlayStation (perhaps not in name, but certainly in vision) one way or another. It was in the works since 1986 http://www.karx.ru/tmegames... , and in his mind (28:06 - 28:29 https://www.youtube.com/wat... ) since 1984 http://www.giantbomb.com/pr...

“That belief has guided him throughout his career. In the mid-1980's, he encountered the first ''chip'' that delivered graphics in real time. Built by Sony for use in broadcasting, it was 6 feet tall, 19 inches wide and 25 inches deep and housed around 20,000 chips. ''I figured that in a decade, that box would be a single chip,'' Mr. Kutaragi said.” http://www.nytimes.com/1999...

Stop skewing the truth.

Garethvk176d ago

I just asked questions. Those are 100% his answers so I did not skew anything. I simply recorded his answers.

iN_4G_form175d ago

He has no answers, if you have no questions. Your questions (and his answers) orbit Nintendo as if it was responsible for the creation of PlayStation, when in fact it wasn't.

+ Show (2) more repliesLast reply 175d ago
FallenAngel1984181d ago

Oh god the way this article is structured is so atrocious. I can’t imagine any self respecting journalist publishing such a poorly edited piece with indentations everywhere

Razzer181d ago

I'm betting they copied it from Word or something and the encoding is all jacked up. Just horrible.

Hint: Copy the text into Notepad to remove formatting!

FallenAngel1984181d ago (Edited 181d ago )

Even after it got edited it still has some further editing to do such as noting the difference between the interviewee’s and the interviewer’s words like most interview articles denote.

Plus there’s this jarring error

“In terms of sales Sony launched the PlayStation 2 years before the N64 came out”

Legatus181d ago

Thank you from the bottom of my heart Nintendo.