After finally making it to the top it was to be expected
that Nintendo would face the envious eyes of those that want that same
spotlight. After Nintendo fought so hard to finally break into the American
video game market and establish itself as a viable video game developer it
still had it’s hardships to go through. Once they made it to the top, their new
problem became the many lawsuits they would then face. The main reason they had
to face these had to be because of the fact that they were the biggest name in
the video game industry and other companies felt like they had no way into the
market with Nintendo the way they were.
One such company is Atari.
In 1988 they filed suit against Nintendo saying they were, “improperly
using their patent and greater market share to monopolize the home video game
market.” This was all a ploy to try to help bring them to the top and get
Nintendo out of the way. Luckily Nintendo didn’t crack under pressure as they
took their time to respond to the suit and in turn filed one of their own.
Their, Nintendo, suit was accusing Atari of patent infringement, breach of
contract, unfair competition, and tortious interference with contract. The case
eventually settled in Nintendo’s favor but this was only the beginning as more
suits began to flood in, coming at Nintendo with anything they could throw at
them from accusing them to announcing a ROM shortage to control the market to a
suit including the attorney general of all fifty states and the District of
Colombia. No matter the suit or what they accused them of all of them came from
the same place in each instance and that was other companies way of trying to
force themselves into a market that Nintendo dominated.
In terms of the decisions from this suits and their affect
on the parties involved, it can be said that it did affect Nintendo in a
negative way to some degree. After the case against the states of NY and MD it
could be said that Nintendo perhaps seen the error in their ways or possibly
did not want to continues getting complaint and lawsuit after another. It made
them seem, in some light as if they were a dictator of the market and gave them
a sort of bad image. Seeing this it could be said that they changed their
agreement with their licensees allowing them to make other games for other
consoles and allowing companies to make games for their console as well.