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bdbdbd said:
numberwang said:

Yamauchi did turn Nintendo from a game card producing company into a commercial giant. However his antagonism with Sony and the Playstation project opened the door for his greatest competitor and permanently diminished Nintendo's dominant position in the gaming market. His old philosophy of third parties as obedient servants worked in Japan in the 80s but not anymore on a global market with western studios.

Actually, the third party policies were introduced to west with NES. Nintendo faced the same problems with Famicom in Japan as Atari faced in US with having no control over who could release games on the system. It was the NES10 lockout chip that mostly prevented the unlicensed games being released on NES. Nintendo also followed itself the same rules it forced on the 3rd parties.

These policies might have worked in the 80s but the moment a bigger fish appeared (Sony) with better services, everyone was eager to jump ship. Konami, Square, Namco etc. moved to the PlayStation asap. Nintendo wanted to push expensive N64 cartridges to 3rd parties when cheap CDs became Nr. 1 medium of storage. Yamauchi overplayed his hands here. Nintendo could win the retail shelf space war against smaller companies like SEGA or ATARI but not against Sony or Microsoft.  Everybody has anti-piracy measures and some form of lock down, that was not the issue here. Even today, Nintendo is developing their hardware foremost with their own games in mind and 3rp parties have to eat what they get.