Background The
video game industry experienced rapid growth and popularity from the late 1970s to the early 1980s, marked by the
golden age of arcade games and the
second generation of consoles. Games like
Space Invaders (1978) became a phenomenon across arcades worldwide, while home consoles such as the
Atari 2600 and home computers such as the
Commodore 64 and the
Intellivision gained a foothold in the American market. Many companies emerged to capitalize on the growing industry, including the card and toy company
Nintendo. Nintendo president
Hiroshi Yamauchi realized that breakthroughs in the electronics industry meant that entertainment products could be produced at lower prices. Companies such as
Atari and
Magnavox were already selling gaming devices for use with television sets to moderate success. Yamauchi negotiated a license with Magnavox for the patents on the technology used in the
Magnavox Odyssey. Since Nintendo's operation was not yet sophisticated enough to design its own hardware, Yamauchi forged an alliance with
Mitsubishi Electric and hired several
Sharp Electronics employees to assist in developing the
Color TV-Game 6 and the
Color TV-Game 15 in Japan. This was followed by the handheld
Game & Watch series. The successes of these consoles gave Yamauchi the confidence to expand Nintendo's influence in the fledgling video game industry. In 1978, Yamauchi split Nintendo into separate research and development divisions. He appointed
Masayuki Uemura as head of
Nintendo Research & Development 2. Yamauchi, through extensive discussions with Uemura and other engineers, recognized the potential of the developing console beyond gaming. He envisioned a home computer system disguised as a toy, which could significantly expand Nintendo's reach if it became popular with children. This popularity would drive demand for games, with Nintendo as the sole provider. Indeed, by 1980 several systems had already been released in Japan by both American and Japanese companies. Yamauchi tasked Uemura with developing a system that would be superior to its competitors and difficult to replicate for at least a year. Uemura's main challenge was economic rather than technological; Yamauchi wanted the system to be affordable enough for widespread household adoption, aiming for a price of ¥9,800 (less than $75) compared to existing machines priced at ¥30,000 to ¥50,000 ($200 to $350). The new system had to outperform other systems, both Japanese and American, while being significantly more affordable. The codename for the project was GameCom, but Masayuki Uemura's wife proposed the name
Famicom, arguing that "In Japan, 'pasokon' is used to mean a personal computer, but it is neither a home nor personal computer. Perhaps we could say it is a family computer." Meanwhile, Yamauchi decided that the console should use a red and white color scheme after seeing a hoarding for
DX Antenna (a Japanese antenna manufacturer) that used those colors. the ColecoVision's top-seller was a port of Nintendo's
Donkey Kong. The project's chief manager Takao Sawano brought a ColecoVision home to his family, who was impressed by its smooth graphics, which contrasted with the flicker and slowdown commonly seen on Atari 2600 games. Uemura said the ColecoVision set the bar for the Famicom. The team, wanting to surpass the ColecoVision and match the more powerful
Donkey Kong arcade hardware, took a
Donkey Kong arcade cabinet to chip manufacturer
Ricoh for analysis, which led to Ricoh producing the
Picture Processing Unit (PPU) chip for the Famicom. During development, Yamauchi directed engineers to reduce costs by removing non-essential components. However, he insisted on including a low-cost circuit and connector that allowed the CPU to send or receive unmodified signals, enabling future hardware expansions such as modems or keyboards. This built-in capability led some within Nintendo to refer to the console as "Yamauchi's
Trojan Horse": it entered homes as a simple gaming device with two controllers, and yet contained features far beyond its apparent function. A 1989 corporate report later acknowledged, "In the initial stages of [the system's] development, we foresaw these possibilities... we built a data communications function into the system." Lead engineer
Masayuki Uemura credited luck for this foresight, while colleague
Genyo Takeda remarked that Uemura's lack of experience allowed him to attempt what others might have deemed unfeasible. Design decisions were also carefully considered. Yamauchi took a hands-on role in determining the controller layout, casing shape, and overall aesthetic. The final design featured a directional pad and two buttons on the right controller, a microphone on the left controller, rounded edges, and a red and white color scheme deliberately made to appear more like a toy than a computer. Original plans called for the Famicom's cartridges to be the size of a
cassette tape, but they ultimately ended up being twice as large. Careful design attention was paid to the cartridge connectors, as loose and faulty connections often plagued arcade machines. Because it necessitated 60 connection lines for the memory and expansion, Nintendo decided to produce its own connectors. Following the sale of the first million units, demand showed no signs of slowing. Japanese retailers inundated Nintendo with urgent requests for stock. Anticipation for new game releases reached record levels, which resulted in long queues and games selling out instantly. This phenomenon, soon dubbed "Nintendomania", overwhelmed the supply chain and further increased demand. The Famicom's success quickly cleared the field of competition in Japan. Fourteen rival console manufacturers exited the market, and
Sega's
SG-1000, launched in Japan on the same day as the Famicom, failed to gain traction. At launch, Nintendo released only first-party games for the Famicom. However, in 1984, after being approached by
Namco and
Hudson Soft, the company agreed to allow third-party titles. Developers paid a 30% fee to cover console licensing and production costs, a revenue model that would later influence the video game industry for decades.
Venture into North America Nintendo initially planned for the console to enter the North American market through a distribution agreement with
Atari. The agreement was expected to be finalized at the Summer
Consumer Electronics Show (CES) in June 1983. However, during the show, Atari discovered that
Coleco was demonstrating an unlicensed port of Nintendo's
Donkey Kong on its
Adam computer system. Atari, believing this violated its exclusive license for the game, delayed the deal. Shortly afterward, Atari CEO
Ray Kassar was fired, the deal fell apart, and Nintendo decided to market its system on its own. With American retailers still wary of stocking game consoles after the 1983 crash, Yamauchi saw an opportunity to introduce the Famicom's hardware to North America through arcades. In 1984, Nintendo launched the
VS. System, an
arcade conversion system that featured ports of select Famicom games, with a focus on two-player competitive play. The VS. System became a major success, selling nearly 100,000 cabinets and becoming the highest-grossing arcade machine of 1985 in the United States. This success gave Nintendo the confidence to pursue a home console launch in North America, and provided a platform to test new titles to help shape the launch line-up. which would later aid its acceptance in toy stores. To further distance the NES from previous consoles, Nintendo heavily promoted optional accessories, such as the
Zapper light gun and the Robotic Operating Buddy (
R.O.B.), to position the system as cutting-edge and sophisticated. While initial consumer interest in the console was limited, its peripherals drew significant attention. The NES launched in a limited test market in New York City on October 18, 1985, followed by Los Angeles in February 1986, and finally a full North American release on September 27, 1986. The launch line-up included 17 games:
10-Yard Fight,
Baseball,
Clu Clu Land,
Duck Hunt,
Excitebike,
Golf,
Gyromite, ''
Hogan's Alley, Ice Climber, Kung Fu, Pinball, Soccer, Stack-Up, Super Mario Bros., Tennis, Wild Gunman, and Wrecking Crew''. Nintendo contracted with toy company
Worlds of Wonder (WoW) to get the NES distributed in stores. WoW's aggressive sales tactics, which included requiring retailers to carry the NES in order to sell WoW's other popular toys, helped secure shelf space for the console. WoW salesman Jim Whims distinctly recalled delivering an ultimatum: "if you want to sell
Teddy Ruxpin and you want to sell
Lazer Tag, you're gonna sell Nintendo as well." WoW's efforts led to a successful first year for the NES; afterwards, Nintendo of America ended the distribution deal and hired WoW's sales team, taking over distribution directly. To enforce its standards, the company used the
10NES lock-out chip to deter production of unlicensed games.
Other markets In Europe and Oceania, the NES was released in two separate marketing regions. The first consisted of mainland Europe (excluding Italy), where distribution was handled by several different companies, with Nintendo responsible for manufacturing. The NES saw an early launch in Europe in 1986, although most European countries received the console in 1987. In Scandinavia, it was released on September 1, 1986, and was distributed by
Bergsala. In the Netherlands, it was released in the last quarter of 1987, and was distributed by
Bandai BV. In France, it was released in October 1987, and in Spain most likely in 1988 through distributor Spaco. In 1987,
Mattel handled distribution for the second region, consisting of the United Kingdom, Ireland, Italy, Australia and New Zealand. In other European countries, distribution was handled by smaller companies like Bienengräber in Germany, ASD in France, Concentra in Portugal,
Itochu in Greece and Cyprus, and Stadlbauer in Austria, Switzerland, and the former
Eastern Bloc. In Poland, the NES had its release on October 6, 1994, along with the
SNES and the
Game Boy. In November 1994, Nintendo signed an agreement with Steepler to permit the continued sale of the
Dendy, an unauthorized hardware clone of the Famicom, in Russia in exchange for also distributing the SNES. Nintendo anticipated that the NES would have a 25 percent market share in Europe, and saw particular potential in the United Kingdom. The console struggled to gain a foothold in the region, however, in part due to the widespread popularity of the
ZX Spectrum, which had already established a strong home computing and gaming culture. The affordability, local software support, and versatility of the Spectrum also made it a dominant choice among British consumers, which severely limited the NES's market penetration. The console would see an increase in share in 1990 with the release of the
Teenage Mutant Hero Turtles bundle, which was released against Nintendo of America's wishes but ultimately allowed the console's European sales to overtake those of the
Master System. In Brazil, the console was officially released in late 1993 by
Playtronic. However, the Brazilian market had been dominated by unlicensed NES clones that were either locally made or smuggled from Taiwan. One of the most successful Brazilian NES clones was the Phantom System by
Gradiente, which licensed Nintendo products in the country for the following decade. The sales of officially licensed products in the region were low due to the abundance of clones, the console's official launch coming after the SNES, and the high prices of Nintendo's licensed products. Outside of Japan, regions of Bangladesh, Indonesia, Malaysia, Nepal, Pakistan, Singapore, Sri Lanka and Thailand received an "Asian version" of the front-loader NES, although imported Famicom systems were still prevalent. Due to
import restrictions, NES consoles in India and South Korea were rebranded and distributed by local licenses. The Korean version is known as the Hyundai Comboy, and the Indian version is known as the Samurai Electronic TV Game System. India was the third region outside of North America and Japan to officially receive the NES. It was produced locally by Samurai Electronics in North India, and was released to strong initial sales in the region, selling 3,000 units per month. However, in the early 1990s, when retailers began promoting bootleg consoles, the console saw a significant drop in sales, selling 300 units per month. In 1988, the Deluxe Set was replaced by the Action Set, which retailed for and bundled the Control Deck with two controllers, the NES Zapper, and a dual Game Pak containing
Super Mario Bros. and
Duck Hunt. 1988 also saw the introduction of the Power Set, which added the
Power Pad floor mat game controller and replaced the dual cartridge with a triple Game Pak featuring
Super Mario Bros.,
Duck Hunt, and
World Class Track Meet. In 1990, Nintendo released the Sports Set, which included the Control Deck, four controllers, an
NES Satellite infrared wireless
multitap adapter, and a dual Game Pak containing ''
Super Spike V'Ball and Nintendo World Cup''. In September 2003, Nintendo discontinued the Famicom in Japan, alongside the
Super Famicom and disk rewriting services for the
Famicom Disk System. The last Famicom model, serial number HN11033309, was manufactured on September 25, 2003; it was kept by Nintendo and subsequently loaned to the organizers of Level X, a video game exhibition held from December 4, 2003, to February 8, 2004, at the
Tokyo Metropolitan Museum of Photography, for a Famicom retrospective in commemoration of the console's 20th anniversary. Nintendo offered repair services for the Famicom in Japan until 2007, when it was discontinued due to a shortage of available parts. == Hardware ==