How Nintendo made the NES a phenomenon

Philipp Rüegg

4/2/2026

Translation: Natalie McKay

Atari partnership, wireless controllers and a focus on education: a new documentary provides an insight into the impressive development of Nintendo’s first console.

In an alternate universe, Atari and Nintendo would be close partners today. There’d be no Super Mario – and Atari wouldn’t have disappeared into obscurity. However, fate had other ideas. Nintendo did what the Japanese company still does today: it went its own way. This turned out to be the right decision.

A new documentary by the Video Game History Foundation sheds light on the turbulent launch of the NES in the USA. It marked the turning point at which Nintendo transformed into one of the most influential console and games manufacturers in the world. The Video Game History Foundation, which is committed to preserving the history of games, worked on the documentary for 15 years under the direction of Frank Cifaldi.

His documentary focuses on the market launch of the NES in the USA in 1985. The console had already been available in Japan for two years under the name Famicom (short for Family Computer).

This impacted the console market in particular. Undeterred by this, the Famicom was released in Japan in 1983, and became a huge success. Nintendo was aware of the difficult situation, but didn’t let itself be talked out of bringing the NES – as the device was to be called outside Japan – to the USA. From there, the aim was to conquer the world. For this, they needed a suitable partner in the West. Who was better suited for this mission than the world’s largest console manufacturer – Atari?

Nintendo of America – primarily concerned with the arcade game business at the time under the leadership of Minoru Arakawa and Howard Lincoln – scheduled a meeting with Atari. The American company was supposed to be given the rights to distribute and market the Famicom. With its experience and sales capabilities, it was the perfect partner. However, Atari hesitated. At the same time, General Computer Company, the developers of Ms Pac-Man, put forward an alternative offer to buy the system.

Atari would’ve put the Famicom in the case that would later house the Atari 2600 Junior. The idea was that Atari could also release its own games for the system with Nintendo’s assistance. To ensure everything was ready for the planned Christmas launch, Nintendo began porting four games to the planned Atari/Nintendo console. However, the two companies hadn’t yet signed a contract. Atari opted for the arcade titles Millipede, Joust, Galaga and Stargate.

But the Nintendo deal never materialised. Instead, Atari bought the General Computer Company system that would become the Atari 7800. Atari did, however, accept the four ports offered by Nintendo in order to finally release those games on the NES. The Video Game History Foundation even found the original games during its research. Three of them came out in 1987 on the NES. The fourth, Galaga, was never released – until now. But Cifaldi and his team were able to restore the game, and you can even try out the prototype yourself.

Nintendo wasn’t put off by this. Thanks to the success of the Famicom in Japan, the company was convinced it could also take off outside its home country.

But Nintendo of America didn’t like the design of the Famicom. It looked too much like a games console – something no retailer in the USA wanted. NOA wanted an industrial aesthetic and tasked Lance Barr with delivering this. Inspired by Danish audio company Bang & Olufsen, he came up with the Educational Learning System – ELS for short. The console had a simple, industrial look. Games were plugged in at the top – similar to Atari consoles. A latch door prevented dust getting into the device.

The controllers were particularly impressive. They were wireless and could be stowed away in the console, which would’ve put Nintendo far ahead of its time. It wasn’t until the PS3, Wii and Xbox 360 generation that wireless became mainstream. The replacement of the directional pad, on the other hand, would’ve marked a step backwards. Barr opted for a square surface, because diagonal inputs were said to work better.

The light gun, which was to be part of the launch bundle, could be folded up and used as a pointer. It was to be used in educational games.

Nintendo also took the optional keyboard and the cassette recorder for saving data from the Famicom, and converted them to the new design language. They were designed to complement the basic console and to resemble a stereo system as a complete set – along the lines of B&O.

Nintendo also continued to tinker with the name. Suggestions included Computer Video System, Alpha System, Imagineer and even Genesis. Years later, Sega used this name to compete with the Super Nintendo. Outside the USA, the console is known as the Mega Drive. Nintendo finally settled on Advanced Video System (AVS). The device was still intended to have a learning aspect, but with the cassette recorder Nintendo focused more on creativity. For example, a modding system allowed players to design their own tracks in the racing game Excitebike.

Despite a successful show, Nintendo was still without a working console, price or retailer. Five months later, Nintendo removed most of the functions and showcased the slimmed-down system at the summer CES. Unlike today, the tech fair used to be held twice a year. The keyboard and recorder had disappeared, and the light gun could no longer be folded up. It now needed a cable, as did the two controllers.

There was also an extremely unusual addition: a robot. Undoubtedly a gimmick, but an effective one. It could move its arms and head, and served as additional input in some games. The press pounced on the toy, filling up column inches about the Nintendo Video Entertainment System. The company had already dropped the name AVS, and had almost decided on the final name.

That didn’t change the fact that people weren’t prepared to buy a new console, especially not one that no existing games could be played on. That’s what people were used to from Atari. There was also a robot that nobody liked, according to the focus group. The conclusion was: «No one with these results has been stupid enough to introduce their product.» Kids, retailers and manufacturers all agreed: nobody wanted a new console – except Nintendo of America. They were still convinced the games would make the crucial difference – and they were proven right.

The design was given a final overhaul. Nintendo put a lid over the system to protect it from dust, which is why it was unflatteringly called the lunch box within the company. Nintendo turned the square control pad back into the tried-and-tested directional pad. Compared to the Famicom, there were some additional advantages. The new console used composite video output, which provided a better picture on compatible TVs. Its controllers could be inserted into and removed from the console. This made them more expensive, but easier to repair. The cables were much longer because American living rooms are bigger than Japanese ones.

There was also a connection on the bottom of the NES for future add-ons such as a network card, retaining the concept of modularity.

Nintendo also took a different approach to packaging design than Atari. Although many Atari cover designs enjoy cult status today, they don’t show what the game really looks like. Instead, Nintendo depicted the pixel figures from the games on the packaging. Arakawa thought the crisp pixel graphics gave the console a futuristic look.

Nintendo selected 15 games for the launch, covering a broad spectrum with unique, readily understood names like Pinball, Tennis and Kung Fu. There was also a brand new release that would go down in the history books as one of the most influential games ever: Super Mario Bros.

Even Nintendo didn’t know what treasure it had in its hands at the time. The game didn’t feature in the marketing campaign. TV commercials focused on Duck Hunt with the Zapper and R.O.B., the robot. Nintendo took great care to present the console as an entertainment system for families. The company wanted to avoid associations with amusement arcades at all costs because they were associated with juvenile delinquency.

Despite all marketing efforts, many retailers remained hesitant. Only when Nintendo promised to buy back all unsold consoles did they put the new console on shelves. The company was certain it would pay off. In the first quarter, Nintendo sold over 50,000 units, corresponding to around half of the stock. The major breakthrough came later, when Nintendo also supplied the rest of the country.

The former market leader had since split into two companies: Atari Games, responsible for the arcade game business, and Atari Corporation, which developed console games. Both sued Nintendo shortly afterwards. Firstly, against a possible monopoly position, because Atari wasn’t allowed to publish its games on other consoles. Secondly, because Nintendo only allowed five games per year per third-party manufacturer. Atari circumvented this regulation by cracking the copy protection with a new chip.

Both Atari companies lost their lawsuits and had to abide by Nintendo’s rules from then on.

Over 40 years later, Nintendo is one of the most important games companies in the world. Super Mario Bros. has been joined by numerous franchises, with each one leaving a lasting mark on the industry. It’s largely thanks to the strong-willed team at Nintendo of America that Nintendo has risen to become a global phenomenon. The Video Game History Foundation also deserves credit for reappraising this formative piece of history.

Philipp Rüegg

Senior Editor

Philipp.Rueegg@digitecgalaxus.ch

As a child, I wasn't allowed to have any consoles. It was only with the arrival of the family's 486 PC that the magical world of gaming opened up to me. Today, I'm overcompensating accordingly. Only a lack of time and money prevents me from trying out every game there is and decorating my shelf with rare retro consoles. more

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