From what i understand Nintendo partnered with the distributurs of teddy ruxbin due to the fact that very few retailers would take them serioulsy. The people behind the teddy R had a strong hold on the retailers and nintendo had sufficant cash to infulance them to use it. " you want 1000 units of the hottest toy this xmas season? sure we can do that for you, if you take 500 units this nes thing we have. your not intrested in the nes? awwww shit looks like i'm all sold out of Teaddy Ruxpins now that i check the system."
on topic
The industry without nintendo would prob have grown on the PC market untill sega got their shit sufficantly together to pull it away from them. Atari was pretty well done doing anything useful in late '82 so they wouldn't have been a factor in any turn of events
