Playstation 1 profited from Nintendo's mistakes and from there on they just could go on "cruse mode", meaning doing what the average gamer expects from you and don't risk anything. I don't mean it as a critic - it's a brilliant strategy once you are the king.
Re Nintendo's mistakes: I think it has one name: Hiroshi Yamauchi the old Predident and CEO of Nintendo. He actually never understood the videogames market, all the weird and plainly wrong decisions are coming from him. He was actually a real mortgage for Nintendo. He's doing actually had a negative effect on Nintendo long after he stepped down as President and CEO. However, there's one real big talent he had: He really had a good nose for hiring the right people. Who would hire a young uknown designer and give him great freedom (Shigeru Miyamoto)? Who would hire a weird electronic engineer with weird ideas and give him great freedom (Gumpei Yokoi, inventor of Game Boy)? Who would hire a banker and bring him into your videogames company (Tatsumi Kimishima, unknown quite but very imporant man behind the scense, later on became interim President and CEO)?
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