Founded in 1950 by Naoharu Yamashina,
Bandai was originally a manufacturer of toy cars and plastic models, but became a major player in the toy industry through the licensing of popular
anime characters beginning with
Tetsuwan Atomu in 1963. In the 1970s, Bandai manufactured both
LCD games based on television programs and dedicated consoles. In 1982, the company released the
Intellivision in Japan, and in 1985 it became one of the first third-party licensees on the
Family Computer. Notably, the company's greatest success in electronic games, was the
Tamagotchi virtual pet first released in 1996. Despite plans for Bandai to merge with
Sega to form Sega Bandai Ltd. in 1997, the merger was called off suddenly. Bandai's board of directors decided to oppose the merger less than a week after approving it, and Sega in turn decided to accept Bandai's actions at an emergency board meeting later that day. Bandai president Makoto Yamashina took responsibility for failing to gain the support of his company for the merger. As a result, Bandai entered the market without outside support. Engineer
Gunpei Yokoi is known for creating the
Game Boy handheld system at
Nintendo. After the failure of the
Virtual Boy, he left the company in 1996 in order to create his own engineering firm, Koto Laboratory. It was then that Bandai approached Yokoi to create the WonderSwan to compete with the Game Boy. The WonderSwan was officially unveiled in Tokyo on October 8, 1998. Bandai chose the name of the system to highlight its aesthetics and technical capabilities because the swan is recognized as an elegant bird with powerful legs that aid its graceful swimming. The company promised a 30-hour battery life, a low retail price, and a launch lineup of roughly fifty games. In 2000, Bandai signed an agreement with Mattel to bring the handheld to North America, but ultimately decided against a Western release. The launch was a moderate success, with the system selling 270,632 units in under a month after its release. Before the WonderSwan Color could be released, Nintendo announced the
Game Boy Advance, which featured superior hardware. The WonderSwan Color still retailed at a lower price point at compared to the Advance at , but despite peaking at 8% of the handheld market share in Japan, the WonderSwan's sales never recovered after the Game Boy Advance reached store shelves in March 2001. less than the Game Boy Advance. Once again, Bandai held a poll on its website to determine casing colors and released the system in blue violet, wine red, crystal blue, and crystal black. Despite its low price and an improved
TFT LCD screen, the SwanCrystal was unable to compete, so Bandai discontinued the WonderSwan line in 2003 due to low demand and backed out of producing video game hardware altogether. In all, the handheld sold 3.5 million units, of which 1.55 million were of the original WonderSwan and at least 1.1 million were of the WonderSwan Color. ==Technical specifications==