MikeRox said:
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Yes, Yamauchi insisted that the NES/Famicom be designed with a lockout chip. In order to get a license to develop on the NES, third parties basically had to agree not to develop games for anyone else. Hence the NES basically had 100% exclusivity over most major third party IP releases.
Nintendo was fairly ruthless in the 80s/90s, lol, not only that, Nintendo actively bullied retailers into not even carrying Sega products. By the early 90s, they started to get heat/blow back for their monopolistic practises and were forced to back off.