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Business Wars

Nintendo vs Sony - Game Time | 4

Business Wars

Wondery

History, Business, David Brown, Management

4.613.2K Ratings

🗓️ 17 February 2020

⏱️ 26 minutes

🧾️ Download transcript

Summary

This is a story about Sony and Nintendo, but it also involves a little company called Sega. Ever play Sonic the Hedgehog? That’s Sega. And during Nintendo’s domination of the US market, they were the only company able to fight back. That is, until they tried to outplay Sony.


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Transcript

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0:00.0

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0:07.4

December 1993. Sega headquarters, Tokyo

0:12.2

Sega President Hayo Nakayama is in his office reading a memo

0:16.3

Outlining what Sega knows about what is becoming its main rival, but PlayStation console

0:23.0

As he reads the specs, anger boils up in him

0:27.0

The console's got advanced 3D graphics and visual power unimaginable in a home console just a year earlier

0:35.1

Nakayama is a college dropout who became a millionaire in the gaming business

0:39.0

And he doesn't even play video games

0:41.6

But he's hyper competitive. He's been obsessed for years with beating Nintendo

0:47.0

But as he reads on, he feels the hot breath of a greater business threat on his neck

0:53.1

Seathing Nakayama hits the intercom connecting him to his secretary

0:58.0

He barks his order to her tell the entire console engineering team to go to the R&D meeting room immediately

1:04.1

If they're in meetings get them out of those meetings

1:07.3

For years, Sega's lived in Nintendo's shadow

1:11.2

But in the early 1990s, Sega fought back with its Genesis console and I catching games

1:17.2

Such as Sonic the Hedgehog where players help a spiky blue creature stop a mad scientist's evil plan

1:24.2

The Sega Genesis game system now comes with Sonic the Hedgehog

1:27.6

All for an everyday low price of 149.99

1:30.6

To the industry's shock, Sega did what everyone thought impossible

1:34.8

It broke Nintendo's stranglehold on the US video game industry

1:39.3

After Sega's assault, Nintendo's share of the market tumbled from 90 to 55 percent

1:45.4

In just two years

...

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