Super Mario, one of the most iconic characters in video game history, made his inauspicious debut in 1981. He wasn’t much—just a handful of colored pixels on a grainy screen, a figure trying to save his girlfriend from a giant ape named Donkey Kong. But by the time the 1990s came around, Mario had not only rescued his lady love from her simian kidnapper; he’d become the face of Nintendo itself.
It all started a century earlier in 1889, when Fusajiro Yamauchi founded a small company named Nintendo Koppai to manufacture hanafuda, a popular type of Japanese playing cards used widely for gambling. (The word Nintendo translates roughly to “leave luck to heaven,” or a place where your fortune is placed in the hands of the gods.) Business boomed for many decades—Nintendo is still one of the top hanafuda manufacturers in the world—but when Yamauchi’s grandson, Hiroshi, took over in 1949, he began looking for ways to diversify the company’s revenue streams.
The younger Yamauchi tried his hands at some pretty outside-the-box business ideas. There were instant rice packets, “love hotels” catering to amorous couples, a taxi cab company and other missteps. He finally found Nintendo’s new niche in the late 1960s, gaining a foothold in Japan’s electronic toys market. When Hiroshi saw the incredible success of home computer and arcade company Atari in the 1970s, he next set his sights on the video game market, and in 1977 Nintendo introduced the Color TV-Game home video game console to the Japanese market.
The machine came pre-loaded with several versions of the same game—initially, Nintendo’s version of "Pong," one of the era's most ubiquitous games—and would sell roughly 3 million units over the next three years, a modest success for the company.
Hungry for more, Yamauchi turned his attention to another prospering industry—quarter-munching video arcade games. Encouraged by the success of its "EVR Race" and "Radar Scope" in Japan, Nintendo produced 3,000 Radar Scope cabinets for distribution in the United States. Unfortunately, American arcade vendors found the game too similar to Space Invaders, and were turned off by the aggravating beeps and noises that constantly emanated from the cabinet speakers during gameplay. Yamauchi was left with nearly 2,000 unsold Radar Scope machines, and it seemed like “game over” for the company’s North American hopes.