Nintendo, a Japanese video game company based in Kyoto, was founded in 1889 by Fusajiro Yamauchi as "Yamauchi Nintendo," a company that made hanafuda playing cards. Sekiryo Kaneda led the company from 1929 to 1949. His successor, Hiroshi Yamauchi, helped Nintendo create toys like the Ultra Hand and video games, including arcade games, the Color TV-Game series of home consoles (1977–83), and the Game & Watch series of handheld games (1980–86).
Shigeru Miyamoto designed Donkey Kong (1981) for arcades. This game became Nintendo’s first international success and introduced the company’s mascot, Mario. After the American video game crash of 1983, Nintendo released its Japanese Famicom home console (1983) as the Nintendo Entertainment System (NES) in 1985 in the United States. Miyamoto and Takashi Tezuka created popular games for the Famicom/NES, including Super Mario Bros. and The Legend of Zelda, which greatly influenced the gaming industry. The Game Boy handheld console (1989) and the Super Nintendo Entertainment System home console (1990) were successful, but Nintendo faced strong competition from Sega’s consoles. The Virtual Boy (1995), a portable console with 3D graphics, was not successful. With the Nintendo 64 (1996), Nintendo began making games with fully 3D computer graphics. The Pokémon media franchise, partly owned by Nintendo, became a global success starting in 1996.
The Game Boy Advance (2001) was another success. The GameCube home console (2001) was popular among Nintendo fans but sold fewer units compared to competing consoles from Sony and Microsoft. In 2002, Satoru Iwata became president and led the development of the Nintendo DS handheld console (2004), which had a touchscreen, and the Wii home console (2006), which used motion controls. Both were very successful. Wii Sports remains Nintendo’s best-selling game. The Nintendo 3DS handheld (2011) used 3D images again. The Wii U home console (2012) sold poorly, raising concerns about Nintendo’s future as a hardware manufacturer and encouraging its move into mobile gaming. Before retiring in 2015, Iwata oversaw the development of the Nintendo Switch (2017), a hybrid console that works as both a home and handheld system. Tatsumi Kimishima took over after Iwata, followed by Shuntaro Furukawa in 2018. The Nintendo Switch 2 was released in 2025.
1889–1949:Hanafudacards
Nintendo was founded as Yamauchi Nintendo (山内任天堂) by Fusajiro Yamauchi on September 23, 1889. It was first called Nintendo Koppai. Based in Kyoto, Japan, the company produced and sold hanafuda, a type of Japanese playing card. The name "Nintendo" is often thought to mean "leave luck to heaven," but there is no historical proof to support this. Hanafuda cards were a popular alternative to Western-style playing cards, which were banned in Japan at the time. Nintendo's cards became widely popular, so Yamauchi hired assistants to make them in larger quantities.
Fusajiro Yamauchi did not have a son to lead the family business. Following a Japanese tradition called mukoyōshi, he adopted his son-in-law, Sekiryo Kaneda, who then legally took his wife's last name, Yamauchi. In 1929, Fusajiro Yamauchi retired and let Kaneda become president. In 1933, Sekiryo Kaneda started a partnership with another company and renamed it Yamauchi Nintendo & Co.
Nintendo's headquarters were nearly destroyed in 1945 during World War II when the United States military planned to use a new nuclear bomb on a Japanese city. Kyoto was the top city considered for the attack, but U.S. Secretary of War Henry L. Stimson removed it from the list because he admired the city.
In 1947, Sekiryo Kaneda created a distribution company called Marufuku Co., Ltd., to sell hanafuda and other types of cards made by Nintendo. Sekiryo Kaneda had only daughters, so his son-in-law, Shikanojo Inaba (who later took the name Shikanojo Yamauchi), was adopted into the family. Shikanojo Yamauchi left the family and did not become company president. Instead, his son, Hiroshi Yamauchi, was raised by his grandparents and later took over the company after his father.
1949–1966: Disney partnership and public listing
In 1949, Hiroshi Yamauchi studied at Waseda University in Tokyo. After his grandfather had a serious stroke, Yamauchi left university to become the president of Nintendo. In 1950, he changed the company's name from Marufuku Co. Ltd. to "Nintendo Kuruta." In 1953, Nintendo became the first company in Japan to make playing cards from plastic.
In 1956, Yamauchi traveled to the United States to meet with the United States Playing Card Company (USPCC), the largest playing card maker in the country, based in Cincinnati. He was surprised to see that this major company used only a small office. This experience made Yamauchi realize the limits of the playing card business.
In 1958, Nintendo reached an agreement with Disney to use Disney characters on its playing cards. At the time, Western playing cards were often seen as tools for gambling, similar to hanafuda and mahjong. By connecting playing cards to Disney and selling books that explained games, Nintendo made the cards more appealing to Japanese families. This strategy was successful, with the company selling at least 600,000 card packs in one year. Because of this success, in 1962, Yamauchi listed Nintendo on the Osaka Stock Exchange Second division.
In 1963, the company's name was shortened from "Nintendo Playing Card Co., Ltd." to "Nintendo." After this change, Nintendo began exploring other business areas using new funds. This included starting a food company with two other businesses, offering products like instant rice (similar to instant noodles) and a vacuum cleaner called Chiritory.
Some sources claimed Nintendo owned a chain of love hotels during this time. However, a Japanese blogger and Nintendo historian, Isao Yamazaki, found no evidence of this in financial reports from 1962 or in contemporary newspapers. The claim first appeared in David Sheff's book Game Over (published in 1993), which relied on interviews rather than clear sources. Japanese books about Nintendo's history at the time did not mention this claim.
Most of Nintendo's other business attempts failed. However, toymaking succeeded because of the company's earlier experience with playing cards. In 1964, Japan had economic growth due to the Tokyo Olympics, but the playing card market became oversaturated. Japanese households stopped buying cards, and Nintendo's stock price dropped from 900 yen to 60 yen.
In 1965, Nintendo hired Gunpei Yokoi as a Maintenance Engineer for the assembly line. Soon after, Yokoi became well-known for work beyond fixing conveyor belts.
1966–1972: Toy company and new ventures
During the 1960s, Nintendo had a hard time staying in business because the toy industry in Japan was small and already controlled by big companies like Bandai and Tomy. Since toys were popular for a short time, companies needed to keep introducing new ones quickly. This led Nintendo to start a new chapter in its history by creating more products faster.
In 1966, Yamauchi visited one of Nintendo’s hanafuda factories and saw a toy shaped like an extending arm, made by a maintenance engineer named Gunpei Yokoi for his own use. Yamauchi asked Yokoi to develop it as a product for the Christmas season. The toy, called the Ultra Hand, sold hundreds of thousands of units and became one of Nintendo’s first major successes. Because of this, Yamauchi moved Yokoi from his maintenance job to a role in product development.
Yokoi had a background in electrical engineering, which helped him create electronic toys. These toys were more unique than traditional ones, allowing Nintendo to sell them for higher prices. He later designed other toys, such as the Ten Billion Barrel puzzle, the Ultra Machine baseball throwing machine, and the Love Tester.
In 1970, Nintendo released the Nintendo Beam Gun, the first light gun that could be used at home. It was made in partnership with Sharp. In 1972, Nintendo introduced the Ele-Conga, one of the first drum machines that could be programmed. It played rhythms stored on disc-shaped punch cards, which users could change to create different patterns.
1972–1983: Arcade, Color TV-Game, and Game & Watch
In 1972, the first video game console sold to the public, the Magnavox Odyssey, was released. It included a light gun accessory called the Shooting Gallery. This marked Nintendo's first involvement in video games. According to Martin Picard in the International Journal of Computer Game Research, "in 1971, Nintendo had an agreement with Magnavox, even before the Magnavox Odyssey was sold in the United States, to create and produce light guns for the console. This was similar to the light gun toys Nintendo had already made for the Japanese market in the 1970s."
In 1973, Nintendo shifted its focus to family-friendly arcades. It introduced the Laser Clay Shooting System, which used the same light gun technology found in Nintendo's Kousenjuu toy series. These machines were set up in old bowling alleys. After gaining some success, Nintendo created more light gun machines for arcades. However, the Laser Clay Shooting System was later closed due to high costs. This effort helped Nintendo create a new market for arcade games.
In 1977, Nintendo released two consoles called the Color TV-Game 6 and Color TV-Game 15. These were developed together with Mitsubishi Electric. The numbers in the names show how many games each console included. These consoles started a new series called the Color TV-Game line.
In the early 1980s, Nintendo created some of its most famous arcade games. Donkey Kong, designed by Shigeru Miyamoto, was released in arcades in 1981. Later, versions of the game were made for home systems, including the Atari 2600, Intellivision, and ColecoVision. Other games, such as Donkey Kong Jr. and Mario Bros., were also made available for home consoles by other companies. Nintendo began focusing more on home game consoles and stopped making arcade games in Japan by late 1985.
The release of Donkey Kong led Universal Studios, Inc. to sue Nintendo for using the character King Kong without permission. However, the court ruled in favor of Nintendo in the case Universal City Studios, Inc. v. Nintendo Co., Ltd. Nintendo honored its lawyer, John Kirby, by giving him a $30,000 boat named "Donkey Kong" and granting him the only right to use the name for sailboats worldwide. The character Kirby was also named after him.
In addition to arcade games, Nintendo tested the market for portable handheld games with the Game & Watch series. This line of handheld electronic games was made by Nintendo from 1980 to 1991. Each Game & Watch device had one game on an LCD screen and also included a clock or alarm. It was Nintendo's first product to achieve major success, with 43.4 million units sold worldwide.
1983–1989: Famicom and Nintendo Entertainment System
In 1983, Nintendo released its first cartridge-based game console, the Family Computer or "Famicom," in Japan. More than 500,000 units were sold within two months. After a few months of strong sales, Nintendo received complaints that some Famicom consoles would freeze during certain games. The problem was caused by a chip that did not work properly, so Nintendo decided to recall all Famicom units still in stores.
In 1983, Nintendo was working with Atari, a major gaming company, to sell the Famicom in the United States. However, just before the deal was completed, Atari canceled the plan. This happened after Atari's leaders saw a demonstration of Donkey Kong on the Coleco Adam computer at the 1983 Consumer Electronics Show (CES). They had not known about this version before. Later that year, Atari tried to restart the deal, but Nintendo believed it would not work because the U.S. gaming market was struggling. From 1983 to 1985, the gaming industry in North America faced a major downturn, which hurt four major console makers: Atari, Coleco, Magnavox, and Mattel.
Nintendo decided to sell the Famicom in North America without Atari's help. It was renamed the "Nintendo Advanced Video System" (AVS) and briefly marketed as a high-end home computer for gaming. Like other computers of the time, it could connect to keyboards and store data on a tape drive. The company first showed it at the 1985 CES, but people were not very enthusiastic because they had negative feelings about gaming after the 1983 crash. Nintendo redesigned the AVS to be a game console only, but it was marketed as different from other American consoles.
It was renamed the "Nintendo Entertainment System" (NES). The word "entertainment system" was chosen to avoid sounding like a console. Games for the NES were called "game paks" instead of cartridges and were inserted into a "control deck" instead of a console. The NES had a gray, boxy design with a futuristic look to resemble devices like VCRs and stereos. Nintendo also created a robot-shaped accessory called R.O.B. to show that the system had features beyond just games.
Nintendo knew that the 1983 crash was partly caused by too many low-quality games from third-party developers. To prevent this, the NES used a patented "10NES" lockout chip. This chip on the game cartridge connected to a matching chip in the console. The console would only play a game if the 10NES chip was present. Only Nintendo and officially licensed third-party developers could use the chip, which also stopped pirated games from working. Later, an Atari subsidiary named Tengen found a way to copy the chip, but Nintendo won a lawsuit against them for breaking the patent.
Nintendo allowed third-party companies to make NES games if they released only five titles each year. These games could not include excessive violence or controversial topics like religion. Games approved by Nintendo had a "Nintendo Seal of Quality" on their packaging. The company advertised the seal to show that the games were well-made and reliable. Nintendo still uses the seal today.
Nintendo tested the NES in New York City in late 1985. The first unit sold at the launch event went to an employee of a competing company, who also bought all 15 launch games. The console was sold nationwide the next year.
As the NES became popular in America, many people began calling it "a Nintendo" and other consoles "Nintendos." Nintendo was worried that this could cause legal problems. The company feared that other companies might start using the name "Nintendo" as a noun, like how other soda brands are sometimes called "Cokes." In 1990, Nintendo posted signs in stores saying, "There is no such thing as a Nintendo. There's the Nintendo Entertainment System. There's Nintendo game software. […] But there's no such thing as a Nintendo. 'Nintendo' is an adjective, not a noun."
One of the first games for the NES was Super Mario Bros., directed by Shigeru Miyamoto and assistant directed by Takashi Tezuka. It started the Super Mario series and was one of the first side-scrolling platformers. The game took Mario out of his small-screen setting and placed him in a large, colorful world. It introduced power-ups, coins, floating blocks, enemies that could be stomped, and characters like Bowser and Princess Peach. Composer Koji Kondo created the game's iconic music using a program that converted BASIC code into Famicom game music. His work influenced many other games.
Super Mario Bros. became one of the most successful games ever, selling 40 million copies. Nintendo has released it on other consoles whenever possible. In 1986, the NES version was sold with the system. Many writers say that Super Mario Bros. helped save the North American gaming industry after the 1983 crash.
A sequel, Super Mario Bros. 2 (1986), was released for the Famicom but not the NES. Nintendo thought Western players might find it too hard or too different from the first game. The version released in the West in
1989–1996: Game Boy, Super Nintendo Entertainment System, and Virtual Boy
In 1989, Nintendo released the Game Boy, along with the game Tetris. Because of its price, the game, and its durability (unlike the broken screens of the earlier Microvision from Milton Bradley Company), the Game Boy line eventually sold 118 million units. Super Mario Land was released with the system, and 14 million copies were sold worldwide. Also in 1989, Nintendo announced a successor to the Famicom, the Super Famicom.
The Super Famicom was released in Japan in 1990. It sold out across Japan within three days, with 1.6 million units sold by mid-1991. Later in 1991, the Super Famicom was launched in the U.S. as the "Super Nintendo Entertainment System" (SNES), followed by Europe in 1992. Like the NES, the SNES had strong technical features for its time. The SNES controller was more comfortable than the NES controller, as it had rounded edges and four new buttons, a design still seen on many modern controllers.
In 1991, Nintendo agreed to a settlement regarding price-fixing claims from the Federal Trade Commission and officials in New York and Maryland. Nintendo had been accused of threatening to stop sending NES systems to stores that sold them at lower prices. The settlement cost Nintendo about $30 million.
In the 1980s and 1990s, Nintendo allowed its characters to appear in five American TV shows made by DiC: Captain N: The Game Master, The Super Mario Bros. Super Show!, King Koopa's Kool Kartoons, The Adventures of Super Mario Bros. 3, and Super Mario World. In 1993, the first movie based on a video game, Super Mario Bros., was released in theaters. It was a live-action film that did not do well financially or critically, making Nintendo cautious about using its characters in movies for many years.
Around 1990, Nintendo controlled 80% of the global gaming market, with the remaining 20% shared by three other companies. Historian Frank Cifaldi noted that Sega, a small but determined company in Japan, was the most promising competitor. Sega released its Sega Mega Drive console in Japan in 1988. It was sold in the U.S. as the "Sega Genesis." In Japan, the Mega Drive gained some popularity, but in the U.S., the Genesis struggled to compete with Nintendo's NES despite media attention. In 1990, Sega hired Tom Kalinske, a former Mattel marketer, to lead Sega of America.
Kalinske and his team launched a bold campaign to make Sega appealing to teenagers instead of focusing on younger children. They promoted the Genesis as a "brash bad boy" of the industry, using ads that criticized Nintendo's family-friendly image. Their ads used fast-paced, rock music and targeted Nintendo directly, such as with the slogan "Genesis does what Nintendon't." Sega set up game demonstrations in malls across the U.S., claiming the Genesis was more powerful than the SNES due to a feature called "blast processing." Nintendo responded with a two-page ad in gaming magazines, explaining that while "blast processing" was real, it did not make the Genesis significantly better than the SNES. Sega also worked with American game companies like Accolade, Electronic Arts, and Spectrum Holobyte to create exclusive games for the Genesis. These efforts forced Nintendo to loosen some of its strict rules for game developers.
Eventually, the Genesis became the most popular console in the U.S., and Nintendo's market share dropped to about 45%. However, the SNES sold 49.10 million units worldwide, compared to the Genesis' estimated 40 million. By 1993, Nintendo had become one of the top ten largest companies in the world.
In the 1990s, as video games began showing more graphic violence or adult themes, U.S. lawmakers worried about their impact on children, who were the largest group of gamers. Nintendo's president, Hiroshi Yamauchi, donated $3 million to the Massachusetts Institute of Technology in 1990 to help create games with thoughtful content, as reported by the Associated Press. After the release of Mortal Kombat, some lawmakers called for banning or censoring violent games. This led to U.S. Senate hearings on video games in 1993–1994. Nintendo and Sega helped create the Entertainment Software Rating Board (ESRB), a private group that assigns age and content ratings to games. Games like Mortal Kombat received an "M" rating, meaning they should only be sold to people 18 or older. Nintendo later eased some of its rules about game content.
Around 1987, as Nintendo developed the SNES, it partnered with Sony, a Japanese technology company, to create the system's sound card. In 1988, the two companies worked together to design a CD-ROM drive for the SNES, allowing the console to play larger games with better graphics and sound. In 1990, Nintendo and Sony announced their collaboration, and in 1991, the device was named the "Nintendo PlayStation."
Before the SNES was completed, Nintendo reviewed its agreement with Sony and found that Sony would earn too much money from CD-based games. Nintendo tried to renegotiate the deal but failed. One day after Sony publicly announced its partnership with Nintendo at the Consumer Electronics Show, Nintendo canceled the deal, revealing it was working with Philips, a Dutch company, instead. Philips created four games for its CD-i system using Nintendo characters, but they were poorly received. Sony continued working on the Nintendo PlayStation, eventually launching it as the "PlayStation" in 1994. The PlayStation attracted developers frustrated by Nintendo's strict rules and allowed games with full 3D graphics.
In 1995, Nintendo faced new competition when Sega released the 32-bit Saturn and Sony launched the 32-bit PlayStation. Sony's strong marketing efforts began to reduce Nintendo and Sega's market share.
In 1992, at the request of Hiroshi Yamauchi, Nintendo purchased most of the shares in the Seattle Mariners, a Major League Baseball team in Washington. The team had been for sale in 1991 due to financial problems.
1996–2001: Nintendo 64 and Game Boy Color
Game Freak began in Japan in 1982 as a gaming magazine. In 1989, its co-founder, Satoshi Tajiri, changed the magazine into a game development studio. The studio created games for Nintendo and Sega consoles, including Yoshi, Mario & Wario, and Pulseman. Around 1990, Tajiri had an idea for a game called Pocket Monsters, which involved collecting and battling animals. This idea was inspired by his childhood experiences exploring forests and catching insects and tadpoles. Tajiri shared the idea with Nintendo, and the company agreed to support the project. With Tajiri leading the effort and help from Miyamoto, Game Freak spent six years developing Pocket Monsters for the Game Boy. In 1996, the game was released in Japan as two versions: Pocket Monsters Red and Pocket Monsters Green. These versions had small differences but the same gameplay. In the West, the game was renamed Pokémon, with the versions becoming Pokémon Red Version and Pokémon Blue Version.
Pokémon Red and Blue sold millions of copies worldwide. They started a long series of Pokémon games, which became part of a large media franchise. The games were adapted into an anime TV series that began in Japan in 1997 and later aired in other countries. In 1998, the Pokémon Center, a chain of retail stores, opened in Tokyo, and a movie based on the anime, Pokémon: The First Movie, was released in Japan. In 1999, the Pokémon Trading Card Game was launched. In 2000, the Japanese company managing the Pokémon retail stores changed its name to The Pokémon Company, which began overseeing the franchise’s branding and products in Japan. In 2001, an American branch of The Pokémon Company was created, later renamed The Pokémon Company International, to manage the franchise’s branding and products outside Japan.
Pokémon remains a global cultural phenomenon. Its popularity in the 1990s was so strong that some writers called it "Pokémania." Time magazine described the trend as a "multimedia and interactive barrage" that connected games, cards, television shows, toys, and even candy. The franchise’s popularity among children caused some adults, especially parents, to express strong disapproval, which some experts called a "moral panic." This reaction was less common in Japan. The Pokémon Trading Card Game caused many schools in the United States and other countries to ban the cards, as children often fought over them. Some Christians claimed Pokémon had Satanic influences, but the Catholic Church stated the franchise had no harmful effects.
Neither Game Freak nor The Pokémon Company is owned by Nintendo, but Nintendo still earns money from the Pokémon franchise. The franchise is jointly owned by Nintendo, Game Freak, and Creatures Inc., the company that produces the games. Game Freak could technically make Pokémon games for Nintendo’s competitors, but it chooses not to, as a sign of respect to Nintendo.
In 1996, Nintendo released the Nintendo 64 in Japan and North America. The console had a successful launch, but many third-party companies quickly developed games for Nintendo’s competitors, partly because making games for the CD format was cheaper than for the cartridge format. One of the Nintendo 64’s launch games was Super Mario 64, a 3D platformer developed by Nintendo EAD. It was one of the first 3D platformers ever made. The game took a long time to develop because Miyamoto wanted to perfect Mario’s controls in 3D space before designing the game’s levels. Before Super Mario 64, 3D platformers did not include realistic physics like mass, momentum, and inertia, making them harder to play. This game established the rules for 3D platforming that many later games followed. It became the best-selling game for the Nintendo 64.
Nintendo later released the Game Boy Pocket, a smaller version of the original Game Boy designed by Gunpei Yokoi. A week after its release, Yokoi left Nintendo and helped create the WonderSwan, a competing handheld console. In 1997, Yokoi died in a car accident at age 56. He was seriously injured in the crash and died two hours later.
In 1997, the European Economic Community forced Nintendo to change its rules for third-party game developers. Nintendo could no longer limit the number of games a developer could release, require approval for games before they were made, or require games to be made only by Nintendo.
In 1998, Nintendo sued the owner of the website "zelda.com" because it showed inappropriate images. In 1999, illusionist Uri Geller sued Nintendo for £60 million, claiming his likeness was used in the Pokémon character Alakazam. The lawsuit was dropped in 2003, and Geller later apologized.
In 2000, Nintendo paid $80 million to the New York Attorney General to settle a case about injuries children suffered while playing Mario Party. The company also gave out special gloves to prevent future injuries. That same year, Nintendo worked with Hong Kong authorities to shut down Apollo Ltd., a company that made pirated copies of Nintendo games.
In 1998, Nintendo partnered with Jeff Spangenburg, a former Acclaim Entertainment employee, to create Retro Studios, a game development company in Texas. Nintendo funded the studio’s 40,000-square-foot building, which eventually employed about 150 people.
In 1998, the Game Boy Color was released in Japan, with versions for North America and Europe following a month later. The Game Boy Color could display colored images, unlike the original Game Boy’s black-and-white screen. It could run new games designed for the system and also play older games made for the original Game Boy.
2001–2004: Game Boy Advance and GameCube
In 2001, Nintendo introduced the Game Boy Advance (GBA) worldwide. It had a bigger screen than earlier Game Boy models and could show more colors than the Game Boy Color. The GBA could play games from the Game Boy and Game Boy Color, and it could connect to the GameCube using a "Link Cable" to act as a second screen for some GameCube games. In North America, the GBA sold quickly, with 500,000 units sold in about a month.
During the early 2000s, Sega stopped making game consoles after their Dreamcast failed financially. Instead, Sega focused on creating and publishing games for other companies, including Nintendo. Sony became Nintendo’s main competitor in the console market, but both faced competition from Microsoft, which released the Xbox in 2001.
Nintendo announced the Dolphin as their next home console at E3 1999. At the SpaceWorld 2000 trade show, the console was named the "GameCube." It had a more comfortable controller with a handle for easy carrying. Its games used a disk format, which was meant to attract game developers back to Nintendo after the weaker Nintendo 64. However, the disks used a smaller size to avoid paying fees to the DVD Forum, limiting each disk to 1.6 gigabytes of data, which was less powerful than competitors’ systems.
While developing the GameCube, Nintendo created a peripheral with an LCD screen that could act as a second display for games and show 3D graphics. Developers tested it with the game Luigi’s Mansion, but producing it in large numbers was too costly.
The GameCube launched in Japan and North America in 2001 and in Europe in 2002. It had a strong start, with Nintendo claiming it was better than the PS2 and Xbox at launch. However, sales later dropped because the system had few games early on and lacked a built-in DVD player, unlike the PS2. A special version of the GameCube with a DVD player was only sold in Japan.
In 2000, Satoru Iwata left his job at HAL Laboratory to help plan Nintendo’s business. In 2002, Yamauchi offered Iwata the role of Nintendo’s president, which Iwata accepted. He was the first president not from the Yamauchi family. Yamauchi stayed on Nintendo’s board until 2005 and owned 10% of the company until his death in 2013. Forbes estimated his net worth at $2.1 billion in 2013, making him the 13th richest person in Japan.
In 2002, Minoru Arakawa stepped down as president of Nintendo of America, and Tatsumi Kimishima took over. In 2003, Reggie Fils-Aimé joined Nintendo as executive vice president of sales and marketing for the America division. Before this, he worked in marketing for companies like Panda Express, Pizza Hut, and Procter & Gamble.
Although the GameCube had better technology than the Nintendo 64, few outside companies made games for it. Nintendo delayed sending development tools to other companies before the system launched. Some critics said Nintendo focused too much on younger players, which made the GameCube seem like it was for children. The cartoon style of The Legend of Zelda: Wind Waker and the console’s handle supported this perception.
The GameCube’s main unique games were Super Smash Bros. Melee and Super Mario Sunshine. Metroid Prime, developed by Retro Studios, helped save the studio after previous projects failed. Nintendo gave Retro the Metroid series to work on, and Prime became a critically acclaimed game. Capcom also released Resident Evil 4 exclusively for the GameCube in 2005, though it later appeared on the PS2.
Despite the GameCube’s lower sales, Nintendo stayed financially strong due to its success in handheld gaming. In 2003, Nintendo released an updated version of the GBA called the Game Boy Advance SP.
In 2003, Nintendo paused GameCube production to clear warehouse stock. It sold the system for $99.99 in the U.S., much cheaper than the Xbox and PS2. By the end of its life, the GameCube sold 21 million units, far fewer than the PS2’s 118 million. Nintendo stopped making first-party GameCube games in 2007.
In 2002, Nintendo sold its 49% share in Rare to Microsoft, who had Rare develop games for the Xbox. Some analysts believed this was part of Nintendo’s strategy to focus on its own teams and fund outside developers. Rare’s games on the Xbox and Xbox 360 were later criticized for being of lower quality.
In 2002, Nintendo faced a fine of €149 million from the European Commission for unfair pricing practices dating back to the 1990s.
In 2002, Nintendo and Chinese-American scientist Wei Yen co-founded the company iQue, a joint venture to manufacture and sell products.
2004–2011: Nintendo DS and Wii
At E3 2004, Satoru Iwata introduced the GameCube's successor, which was called "Revolution" during development and later released as the "Wii." The Revolution began development shortly after the GameCube launched. It was designed to be small, quiet, and affordable, with a focus on gameplay rather than powerful graphics. Iwata stated that gameplay would drive a "gaming revolution," suggesting that graphics were not the most important feature of the console.
At E3 2004, Nintendo also announced the Nintendo DS, a handheld system that displayed games on two screens stacked vertically. The screens could be folded closed when not in use. The DS used Wi-Fi to connect with up to 15 nearby devices, supported a new 3D graphics engine, and allowed users to play multiplayer games with others who owned the same game. The DS launched in the U.S. and Japan in 2004, and in Europe and Australia in 2005. Every DS came with PictoChat, a preinstalled app for sending text and drawing messages between nearby DS systems. Nintendo aimed to attract teenagers and young adults, avoiding the perception that the device was only for younger audiences. In the U.S., the DS was advertised with TV commercials that included adult themes. Pre-orders for the DS far exceeded Nintendo's production plans, with two million units ordered before launch, while the company had only prepared one million. To meet demand, Nintendo added a third factory in China to manufacture the system. Soon after, Sony released the PlayStation Portable (PSP), entering the handheld gaming market.
In 2005, Nintendo opened its first public retail store, the Nintendo World Store, in New York City’s Rockefeller Center. The store had two floors and included kiosks for GameCube, Game Boy Advance, and Nintendo DS games. Display cases featured items from Nintendo’s history, such as hanafuda cards.
At E3 2005, Nintendo showed the Revolution’s design but not its motion-sensing controller. The console was planned for a 2006 release, which was later than the Xbox 360 and PlayStation 3 (PS3), both released in 2005. The Revolution would support online gaming through Wi-Fi and play GameCube games. Iwata said the system would prioritize "big ideas over big budgets," a statement later interpreted as referring to the console’s motion-controlled games. Nintendo aimed to appeal to both its traditional audience and casual gamers with the DS and Revolution. They also introduced the Game Boy Micro, a smaller version of the Game Boy Advance with a brighter screen and a detachable faceplate.
In 2005, Nintendo revealed the Revolution’s controller, later named the Wii Remote. It resembled a TV remote and could be used with an attachable joystick, later called the Wii Nunchuck. The controller could be held vertically or horizontally, making it accessible to both traditional and casual gamers. Its internal gyroscope allowed for motion control in games. Analysts noted that the controller marked a shift in Nintendo’s strategy, moving away from competing directly with Sony and Microsoft, whose consoles targeted hardcore gamers.
In 2006, Nintendo announced the Nintendo DS Lite, a smaller and lighter version of the DS with a brighter screen. The screen brightness could be adjusted to four levels. The DS Lite launched worldwide later that year.
Nintendo also confirmed the Revolution would be released as the "Wii," a name chosen to appeal to casual gamers. The name initially caused controversy among fans. Nintendo showcased games for the Wii, including Excite Truck, Wii Sports, and Super Mario Galaxy, which used motion controls. These games helped ease concerns about the console’s innovative features.
In 2006, Reggie Fils-Aimé became president and CEO of Nintendo of America, while Tatsumi Kimishima was promoted to chairman of the board and CEO. Nintendo also established a South Korean subsidiary, Nintendo Korea, in Seoul, replacing Daewon Media as the official distributor in the country.
In 2006, Nintendo and Microsoft were sued by Anascape Ltd. for patent infringement, claiming their use of analog technology in controllers violated Anascape’s patents. Microsoft settled the case, but Nintendo went to trial, initially losing and being ordered to pay $21 million in damages. Nintendo appealed, and in 2010, a court overturned the ruling. Anascape’s appeal to the U.S. Supreme Court was denied.
In 2006, Nintendo announced the Wii’s launch details and demonstrated the "Wii Menu" graphical user interface (GUI). The console launched globally later that year and sold quickly, helping Nintendo recover from the GameCube’s slower sales. Its success was attributed to its appeal to a broader audience. In response, Sony and Microsoft later released add-ons for the PS3 and Xbox 360 targeting similar demographics.
In 2007, Nintendo appointed Rose Lappin as managing director of Nintendo Australia, making her the first female leader of a Nintendo subsidiary.
In 2008, Nintendo released the Nintendo DSi in Japan, an updated version of the DS Lite. The DSi included cameras inside and outside the system and supported downloadable content. It launched worldwide in 2009.
2011–2017: Nintendo 3DS and Wii U
At E3 2010, Iwata introduced the Nintendo 3DS handheld console. It kept the two-screen design of the DS but added a feature that allowed games to show 3D visuals without special glasses. A slider on the device lets players adjust how deep the 3D effect appears. If the slider is turned all the way off, the system shows regular 2D images. The 3DS can also play 3D videos, such as some movies that were available on Netflix before the service ended. The console includes gyro and motion sensors, as well as three cameras. Two of the cameras can take photos that look 3D.
The 3DS introduced a feature called StreetPass, which lets two nearby 3DS systems exchange data when both are connected to Wi-Fi and in sleep mode (when the screens are closed). Some games used this feature to allow online multiplayer play without requiring players to actively participate. From 2011 to 2013, Nintendo offered a service called Swapnote, which let users send drawings and pictures to other 3DS users. The service ended after an incident in Japan where two men used it to share child pornography.
The 3DS launched worldwide in 2011. Critics praised its 3D effect, calling it immersive and comfortable, but criticized its screen quality, battery life, and high price in the U.S. ($249.99). Sales started slowly. In the U.S., it had a "reasonably strong" launch, but sold poorly in its second quarter due to its price. Nintendo lowered the price to $169.99, which helped increase sales. The Japanese price was also reduced.
In 2011, Nintendo announced a successor to the Wii, called "Project Cafe." At E3 2011, it was revealed as the "Wii U." The console had a traditional box that connected to a TV, but its main feature was the Wii U GamePad, a touchscreen controller that connected wirelessly. The GamePad had a microphone, gyroscope, and camera. Nintendo showed how the GamePad could be used in games, such as displaying a rifle scope view or magnifying parts of a TV screen. The Wii U supported high-definition video, was backward compatible with Wii games and accessories, and could support video conferencing.
In the early 2010s, Nintendo’s profits dropped to their lowest levels in the company’s history. For the fiscal year ending March 31, 2012, Nintendo reported $530 million in losses on $8 billion in revenue, its first annual loss since 1981. The gaming industry had weak sales that year, but Nintendo was also hurt by slow 3DS sales and declining Wii sales. Some experts said the success of the upcoming Wii U was critical for Nintendo. Others suggested Nintendo could benefit from making games for mobile devices like the iPhone, but Nintendo focused only on its own hardware. Industry leaders said this decision might have missed opportunities, allowing new game brands like Angry Birds to grow on mobile devices.
The Wii U had strong demand when it launched in the U.S. in 2012, nearly selling out at GameStop stores on Black Friday. Sales slowed by 2013. In Japan, 600,000 units sold, and in the U.S., 400,000 units sold—200,000 fewer than the Wii sold in the same period. Iwata said stores still had some Wii U units in stock by the end of the Christmas season, unlike when the Wii launched. He noted sales were steady but not meeting expectations. Nintendo lowered its sales goals for the Wii U and 3DS. Sales continued to drop, and Nintendo reported another annual loss in 2013.
Later, analysts said the Wii U’s poor sales were partly due to confusing marketing. A writer called the Wii U’s E3 2011 presentation "perhaps the worst hardware reveal in modern history," as Nintendo focused on the GamePad as a "new controller" instead of a key part of the new console. This led many to think the Wii U was a tablet for the Wii, not its successor. Iwata later admitted Nintendo had not done enough to explain the product. By the end of manufacturing in 2017, only 13 million Wii U units sold. However, the 3DS sold 75 million units by the end of its production in 2020.
In 2011, Nintendo started "Nintendo Direct" presentations: online videos that shared news about upcoming games or hardware. These videos are still released as of 2026. Microsoft and Sony later created similar video series for Xbox and PlayStation news.
In 2013, Nintendo began claiming copyright on "Let’s Play" videos of their games on YouTube. This allowed Nintendo to collect advertising revenue from gameplay videos, which had previously gone to the uploaders. While others had used this method before, Nintendo’s decision was controversial. Many in the gaming community argued that gameplay videos were created by the people who recorded them, not Nintendo. Nintendo later removed its claims.
In 2014, Satoru Iwata was diagnosed with bile duct cancer. It was found early, and he had successful surgery to remove it. He later said the cancer was difficult to treat but was detected early and he recovered well. A year later, the cancer returned. Iwata did not attend E3 2015, and Nintendo said he would focus on other areas
2017–2025: Nintendo Switch
In 2012, Nintendo began planning a new video game system. In 2015, the company announced during a press event that it was creating a dedicated system called "NX." In 2021, Fils-Aimé stated that the NX was a very important console for Nintendo, as the Wii U was expected to have a shorter lifespan than usual. In 2016, Nintendo revealed the NX would launch in 2017. The system was officially named the "Nintendo Switch" in 2016. It is a hybrid console that can be used both at home and on the go.
The Nintendo Switch was released in 2017. It launched with 15 games, five of which were only available on the Japanese eShop. Three of these games were developed by Nintendo and released worldwide: 1-2-Switch, Snipperclips, and The Legend of Zelda: Breath of the Wild. The last game was also released on the Wii U and received widespread praise. It was later named the best video game of all time by several outlets.
In 2018, Shuntaro Furukawa became Nintendo’s president, replacing Kimishima. In 2019, Doug Bowser took over as President and COO of Nintendo of America, replacing Fils-Aimé.
In 2020, ValueAct Capital, an investment firm based in San Francisco, bought $1.1 billion worth of Nintendo stock, which is 2% of the company. In 2022, Nintendo acquired SRD Co., Ltd., a company that had worked with Nintendo for over 40 years as a support studio.
In 2022, the Public Investment Fund of Saudi Arabia purchased a 5% stake in Nintendo. In 2025, Niantic, Inc., the company that created Pokémon Go, sold the game’s rights to Scopely, a game developer owned by the Public Investment Fund.
In 2020, Plan See Do, a hotel and restaurant company, announced plans to turn the former headquarters of Marufuku Nintendo into a hotel. In 2021, Nintendo said the Uji Ogura plant, where the company’s playing cards were made, would become a museum called the "Nintendo Gallery." In 2023, Universal Studios Hollywood opened Super Nintendo World, a theme park based on the Mario franchise. In 2025, another Super Nintendo World park opened in Universal Orlando, Florida.
After the 1993 Super Mario Bros. movie failed, Nintendo avoided making films based on its games. This changed in 2014, when leaked emails showed Sony Pictures and Nintendo were discussing an animated Mario film. In 2018, Nintendo announced an animated Mario movie from Illumination, titled The Super Mario Bros. Movie, which was released in 2023. The movie received mixed reviews but was a commercial success, earning over $1.36 billion. A sequel, The Super Mario Galaxy Movie, was released in 2026. In 2021, Furukawa said Nintendo would consider animated adaptations of other properties. In 2022, the company bought Japanese animation studio Dynamo Pictures and renamed it Nintendo Pictures. Upcoming projects include a live-action Legend of Zelda movie.
2025–present: Nintendo Switch 2
In 2021, Shuntaro Furukawa said the Nintendo Switch was "in the middle of its life cycle." Nintendo introduced the Nintendo Switch 2 in 2025 and released it later that year. The Switch 2 kept the same hybrid design as the original Switch. It cost $449 USD, which was the highest price ever for a Nintendo console in the United States. The launch game Mario Kart World cost $79.99 USD, which was more expensive than usual for Nintendo’s high-budget games, which typically cost $59.99 USD. At the same time, Nintendo increased the prices of the original Switch and other hardware. They also said future high-budget games would cost $69.99 USD. Experts thought this price change was because of economic challenges in the United States caused by tariffs on goods imposed by President Donald Trump. Despite these changes, the Switch 2 and Mario Kart World sold very well. The Switch 2 became Nintendo’s best-selling console within four months of its release. Some outlets noted that Nintendo’s very loyal fans might be willing to pay more for its products than the average person in the gaming industry.