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Describes Nintendo's rise to dominance in the home video game industry in the late 1980s. Then presents the challenges Nintendo faced in 1990 as 16-bit processors entered the market against the 8-bit Nintendo Entertainment System.

Some information in this case came from interviews with individuals working in the video game industry (video game companies, software licensees, software developers, and members of the trade press) in the United States and Japan. No information from those interviews has been attributed to its source in order to protect confidentiality. The case author thanks everyone who agreed to be interviewed. Special thanks to Hiroaki Tanaka who translated material unavailable in English. Cases are developed solely as the basis for class discussion. Cases are not intended to serve as endorsements, sources of primary data, or illustrations of effective or ineffective management. To order copies or request permission to reproduce materials, call 847-491-5400 or e-mail cases@kellogg.northwestern.edu. No part of this publication may be reproduced, stored in a retrieval system, used in a spreadsheet, or transmitted in any form or by any means—electronic, mechanical, photocopying, recording, or otherwise—without the permission of the Kellogg School of Management.
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