Wondering. Its march, nineteen, forty, nine twenty two year old, Hiroshi Almaty, pauses outside Nintendo headquarters in Kyoto, the city was Japan's imperial capital for more a thousand years. Nintendo stone and brick building stands out in a city filled with wooden structures. Uashi Is it the unusual building for a while and then strides purposefully through the entrance he's the boss of Nintendo, though he doesn't want the job. It's his family's company in nineteen. Forty nine he had makes him made playing cards you much grandfather, the previous direct, of the playing card manufacturer, his bed, written with a stroke. Your marches father, abandon

his family when you're marshy was just five years old, that leaves your marshy next in line to run before Molly Business, by duty you takes the helm, but after taking charge, he quickly parts with tradition. Knows. No one wants him. There is relatives are envious and many intend to employees, hate the idea of being bossed around by this arrogant, unproven Rich kid, with his tailored suits and manicured fingernails as you might. She walks through the entrance and into ten doze, marble, Ford, reception area, employee, Please give him sideways, looks and gossip disdain fully behind his back one worker whispered you're much, he knows nothing about business and another adds he's bound to fail in studying hard. You much

spent his time at law. School flashing is families cash dining on stake, fashionable western restaurants and indulge during his taste for expensive wines and brandy, he's too a fish and lazy to succeed? The workers agree, but every one of us estimates image their new boss, because underneath the pampered boy exterior, is a man will of steel you marshy already knows what his first decision will be ended, shocks, everyone, he sits down in his office in someone's his cousin he's the only possible challenger as air to the Nintendo business. You might she promptly fires him He then walks down the hall and tears down the company, sisters exhorting employees to work hard and be meticulous in your mouth,

cheese, New Nintendo employees be creative rather than thinking, drones, Yemen you stance is clear, Nintendo his company. Now and in his company answer to no one. If you ve ever wondered how to invest or struggled to understand how to make your money work for you, the motley fool is just what you need. The motley fool provides advice and guidance that cuts through the boys of standard business sections and website, providing you with simple easy to use analysis to help. You understand the market. Two brothers, Tom and David Gardener founded the fool in their garage in Alexandria, Virginia, and they are both still with the company today, Thomas CEO and David, is their lead stock analysed and aboard member there flagship service stock adviser provides to stock recommendations,

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I'm David Brown, your listing the episode, who, in our six part series on the wall, between Nintendo and Sony man of steel, our last episode set in the nineteen nineties, Yo Marching ten dough and Sony man of steel humiliating fashion, but that still years in the future. For this episode, we're going all the way back before nineteen hundred to the birth of the company. It will shape shift many times before it becomes

recognisable as today's video game Powerhouse Nintendo, was ready, successful and pushing sixty when you're marshy inherited the company back in eighteen. Eighty nine, when you she's great grandfathers started. The business nintendo was no more than a cramp street. Starlit sold handmade japanese playing cards, the stall been small, but its choice of location showed that they had a nose for business Nintendo. Home was a sketchy. Kyoto neighbourhood filled with illegal gambling, dens run by your coups against it, those smoky back street dive people played cards, Then players from cheating, fresh decks of cards used for every game began throw away approach created an insatiable demand for Nintendo cards. And tender was selling thousands of packs a day.

The stall was replaced with larger premises. Soon Cards were made on a mechanical production line and distributed across Japan. By the time Marty inherited the company and nineteen forty nine tender was Japan's biggest playing car manufacturer. One sees in charge and his fired his cousin. She takes on the company stagnant culture to create efficiency consolidates Nintendo production facilities and its hundred or so employees into one location. The you in response by calling a walk out day, after day angry employees gather outside Nintendo headquarters. They build a camp and decorated. Banners demanding that marshy go somewhere receiving go on hunger strike sitting cross.

Leg for hours, on wooden boxes in the street to signal their determination to get their way, but you might refuses to even negotiate with the union. The newspaper, article striking workers, accuser, marshy of being in company autocratic, a man, too young and rude to run. Nintendo effectively weeks go by but eventually your she decides enough, is enough. One morning as the workers gather yet again outside Nintendo offices, One of you, maltese assistance emerges from the building in his hands are large bunch of letters, He hands the letters out to each one of the striking workers, the worker shocked by what they find inside. The letters are signed by a informing them that they have been fired, effective immediately. The strike is over

and with it all opposition to your marches iron fisted rule within Nintendo. Your marshy may have changed Nintendo's culture, it takes him and there are ten years to change the business Nintendo still makes playing cards does it had for seventy years, but that was all about to change thanks to some hard to its knees. In fifty nine and millions of japanese families are buying their first television set The sudden desire to own a tv is simple in future, time the crown prince of Japan is getting married and his wedding will be broadcast live to the nation for your marshy. This is in credibly exciting, but that's not what, ass. He cares about the wedding. Instead he's

he's the sudden growth in television ownership is a way to boost sales of Nintendo playing cards tv advertising, but there's a problem playing cards, Don't make for good tv. March. He knows he needs a way to make his companies card decks more exciting, and then the answer hits after the Second World war. Japanese children fell in love with Disney characters, mostly chuckle when they see Mickey Mouse or Donald Duck, but your Margie she's dollar signs. For then take your pick and what better way to earn those. Yet by sticking do these famous characters on Nintendo playing cards. So you might She get in touch with the MAGIC kingdom hoping to get the right. What Mickey and his friends on Nintendo cards Disney's wary about licensing its characters, one american executor

explains it. This way to your marshy. Our characters are our most valuable assets. We ve, never even heard of your company wash we trust you with our characters. Nintendo is an established company. We have been in business for seventy years and we pride ourselves on our quality. These talks drag on for months as your Matthew eyes to convince Disney that and tender really can be trusted eventually you're much gets the deal and the big sales he expected. But here encounter with Disney leaves him with more than just that experiencing the inner workings of the magic kingdom. Up close fires up your marches ambition, he begins to quit. De Nintendo, singular focus on playing cards. Why Nintendo be a world class company. A company like Disney cannot expand into new lines of business. Uashi doesn't care

new businesses? Nintendo gets involved in all he cares about is, Can nintendo bigger Whatever business he thinks we approve profitable will do. And so driven by your maltese new hunger for success in ten. Tries one business venture after another: if found a taxi service, it manufactures strollers it assembles cotton, candy machine cells pop I branded CUP Rahman produces instant right. It even opens love hotels where beds arrested by the hour nothing seems to stick sixties Nintendo is piling on dad and is closer to making your maltese dreams of global success come true. In fact, for nearly eighty years and business Endo is looking over the abyss, but then

salvation comes from a young board worker within help Presley hitherto, in nineteen. Sixty five she hired gun pay your coy electrical engineering graduate with a black slicked up pompadour your question: is to keep Nintendo playing cards production line running it's easy work in ten. Those machines are simple beasts and, after checking them each morning, Yo Coy treat to his office to The time he amuses himself by building gadgets out of spare parts he finds surround the factory today Yo Coy is in his cramped office working on his latest project, its assent change device. It looks like a long scissor jack. As the noise of printing presses seep through the offices wooden walls, he puts his feet,

on his desk leans back in starts, tightening the screws that hold it together, you're goin jobs when he hears the knock at the door as the door opens dropped his device onto the office is concrete floor. Spins around and seizure marshy standing there you're maltese gaze law onto the gadget on the floor. What Are you doing Mr Marty? I come with me now to my office and bring that thing with you. Well aware of your marches ruthless streak, you quit except the gadget embraces himself for his inevitable firing. Entering the office. Your moxie closes the door and turns to your what is that it toy, Mr Uashi? What does it do? may I show you your courage, A pencil under the floor of the maltese office in stands. Up

positions one end of his gadget over the pencil and then wheezes the handle at the top end. The device dredges out and the far end clamps onto the pencil allowing new coin lifted from the floor. Without bending down very interesting to the pencil allowing you're. Quite a lift. Toy. We can sell Nintendo releases. Your coils invention is the her hand and it becomes Japan's must have toy of nineteen sixty seven. Been tender more than a million from success. The company launches a toy business with your coy as Nintendo Chief toy designer. Your marching thinks at last he's found. Profitable direction for the company, but toy business is tough. Children are fickle and hit. Like the ultra hand, to come by and

every time. Nintendo strikes gold competitors flood the stores with copycat toys, Your continues his quest to diversify Nintendo. It tries electronic toys there is the love tester a couple asks a metal sensor while holding each other's hands and a meter displays their love. Level on a scale from one to a hundred that out to be a flash in the pan intend o cells dollhouse. It makes photocopiers for schools and opens electronic shooting galleries. Trying just about anything to diversify, to grow, but success, remains elusive by them nineteen seventies, Nintendo, barely hanging on weighed down by the debts from all these failed experiment

every morning, you're much he wakes up and wonders. If today will be the day, Nintendo closes its doors for good, but your marshy key, since fears to himself to his employees. He remained the cold in control than intimidating boss. He has always been to his family. He remains distant and usually absent. Father too preoccupied I'd with work, to spend an equality time with them Nineteen. Seventy six, your March is busy in his office reading through the latest budget report and the new this grim, but then, the intercom on his desk buzzes. It's your marshy secretary, Mr Monti. I have a collar Mitsubishi Electric for you. What do they want? They would not Tell me, MR your Marquis, should I take a message: no put them through the circle It connects the call in your mouth. She picked up the phone

This is MR, your Marty, hello, Mr Marty, I'm calling you, because I have a product that we believe will be of great interest to Nintendo. Could we come and show it to you curious? much. He agrees to the meeting, but he's not only curious he's desperate, he's. Tried everything to save his company as it turns out this encounter we'll transformed in tenders, fortunes business it is supported by next week when the most important questions any business owner can ask themselves is this: are you confident that you ve got the right numbers at your finger? If you can answer that with a resounding yes, then you Like a lot of companies. Most dont have a clear picture of their finance. And that's why most businesses fail dont, be like most businesses serious answer Noise and financed teams run on net sweet by Oracle the world

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You marshy eyes it wearily as a Mitsubishi representative explains what his company wants: we're Looking for a buyer for this device, we designed home game machine for other companies that company has since gone bankrupt. Now, she is intrigue. Please continue. Our machine is very advanced. It plays six deaf. Back in ball, video games that are built into the device it people owner color television, they will, able to see the games in color too, since the development of the device is already done, this would be a low cost wave and intended to enter the video game market. Would you be interested you much? He doesn't think highly of video games. In fact, here likes their primitive ping, pong action and ugly black and white visuals but he knows it

Maybe she's offers just too good to turn down the back. He voted no hate the next year in tenders, color, tv game, six console arrive in japanese stores. Supported by a national television advertising campaign enough at that meeting, could it had happened, price of rival consuls end with color visuals to boot, tv game, six cells, vast hundred five thousand cell in months, wiping in dead and suddenly Nintendo is at the forefront. Of Japan's embryonic videogame industry. Encourage you ma cheap back. The house on Video games and tender releases more game Sold excessive and starch produce in coin, operated video games for amusement arcades to stay out of its rivals, your marshy pressures

employees to come up with novel game ideas, give products that no one has seen before he tells his harassed staff over and over. Eventually, your coy comes up with exam. Lay the kind of winning idea. You're marching wants pocket sized video games that double as digital watches, Nintendo calls it the game and watch Soon my japanese school yards and commuter trains are filled with people absorbed in their game and watch buoy by Nintendo success in Japan. You She decides. It is now time for action. And oh to seek similar success in America in late nineteen. Eighty Nintendo opens a: U S. Office in Redman, Washington outside of Seattle, lint.

And oh enters America, as the country is gripped by video game mania. Billy Oh games are everywhere arcade spring up in towns and cities across the land, gobbling quarters by the millions video games or on magazine, covers in the pop charts and lurking in dentist waiting rooms. The high best around the games console made by a Tory its built by the caliph New company that introduced the world to video games in the early seventys with Paul. Like Nintendo consult the Tory rely on built in games instead, a tory owners by new game sold on cartridges that plug into the machine millions of people by Tories council turning company into a corporate giant with a promotional budget, two rival Coca COLA. And Mcdonalds to cash in on the Atari, led gainsborough, all

in ten dough needs is a good game to sell to the nations Arcade, unfortunately, intent doesn't have a very good game it has radar scope of space invaders knock off, but that fails to fight our viens. Don't worry, Marcie tells his new. U S team! The next game will be the hit you need a few weeks later. The game you're watching promised arrives at Nintendo of America's headquarters in Redmond member in ten those you asked eagerly use a box night. It cut open the large cardboard box and then pull out the bubble rap. Their excitement evaporate it's as soon as they see the tall arcade cabinet inside after a few because they of silence tall boy, you says what everyone in the warehouse is thinking. It's called donkey com, what the hell does that mean? What's a donkey com,

it concerns only deepen when they switch the game. On the hero is a dumping and in dunk areas, the game, challenges, players to guide this butter ball and overalls up a ramshackle construction site and rescue his girlfriend from a giant cartoon ape. There aren't any sir ships, no enemies to shoot and no explosions. Instead, players, huh over barrels rolled down the screened by the giant aid The thing seems hopeless. The employer who question the games. Name speaks up again, screw. No one cartoon games. In one kid wants a fat man with a mustache this'll, never sell well. He could

have been more wrong from the moment it reaches the arcades in nineteen. Eighty one donkey con becomes a phenomenon. Donkey com replaces man, is the game of the moment and Mario its overweight hero, a superstar don t Kong inspires pop singles spot Saturday morning, cartoon series and even to turn into a breakfast cereal armed with the millions made from donkey Kong success, your mom She decides that Nintendo should now take on a tory with a cartridge console of its own The orders is engineers to create a council that can put a Tories seen to shame and the result is the Nintendo. Entertainment system, the any ass in Japan

The any s becomes yet another home run for Nintendo within months, this nineteen. Eighty three release Nintendo can barely but with demand from the fast growing legions of any S owners with the children of Japan hooked on any S. Games watch. His next move is obvious. It's time for the ETA. Yes to cross the Pacific and Conquer America, question is: will any s arrive too late? It's nineteen! Eighty four. At the consumer. Electronic show in LAS Vegas, where the biggest new electronics or unveil each year in it. Do of America. Team is now having a good time when show the Nintendo entertainment system to? U S. Retailers for the first time with a feedback is terrible The message is the same. Every time video games are over turns out.

It while Nintendo was busy making a success of the enemy S in Japan. Is changed in the. U S, the video. Game boom has gone bust. The bubble popped by an over supply of games our trade halls or closing as fast as they once opened. A tar, he's gone from corporate icon to the greatest failures in business history, retailers, discount games heavily just to clear their shows game lay off staff and shut down shops, so one in ten, proudly roles in Vegas touting the any ass Rita buyers, just laugh. They snigger to each other. Look at clueless much air, they don't even know. Video games are finished. And oh of America President Manoeuvre, our car, doesn't give up here team redesign the any s and a year later, then tender return.

To the consumer electronics show. But the reaction is the same Video games are yesterday's news. The retailers tell Nintendo and second year in a row, our power break the bad news to your marching, Mr Amato, I'm sorry, but America is still not interested in the enemy s. No, they are wrong. Children aren't bored with video games. They are just bored with bad video games. This is what I want you to do. Take the any s to one american city, one city and launch it they're prove he's doubters wrong. There was only one place it made sense to launch New York City if the, yes could make it there, it could make it anywhere. With a fifty million dollar budget, the sales team works around the clock. They bombard the I boroughs with advertising. They smashed

Through the scepticism of retailers, by offering money back guarantee, they spent, hours on their feet in Malta, demonstrating the any yes to passing families where, when Christmas sales figures arrive there to passing families. When the Christmas sales figures they discover new Yorkers bought fifty thousand convince retailers across Amerika to start stocking the any ass. Soon and those console is selling out across Amerika by the EU nineteen. Eighty six intended would sold a million any S councils in the. U S, your mom. She was right american children were not done with video games. They just wanted better games and intended has no shortage of those, but there is there has been no shortage of those, but there's one Nintendo game in particular that the kids

Super Mario Brothers, the latest adventure of the mustachioed hero from donkey com, intended been six months, perfecting this game and it shows, Ray idea every moment, every image and every blast of sound, whose is quality, supermarket Brother sets a new standard for video games and propels the nintendo into me of american homes. Fine Nineteen. Eighty nine one years on from its formation Nintendo trolls and ninety percent of the video game console market needs. And though now dictates the game business the ninety ninety release of Super Mario brothers. Three only highlights how big Nintendo becomes during this period, the game earning more than half a million dollars. Even grossing Steven Spielberg movie e yeah Mario, is bigger than e t

Control, Dron might even know him better than Mickey Mouse in your memorial three your mom. She's done more than reshape Nintendo in Disney's image, he's built a new Disney, a Disney for the video age as Nintendo enters its second century. It looks unstoppable and Even a company, the size of Sony knows it will take us coolly and effort to topple this business giant on the next epoch. The Sony Play station team battle to keep the project alive in the face of enemies within Sony. And a games industry loyal to Nintendo.

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