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Business Wars · July 18, 2019 · 31m

Nintendo vs. Sony - Game On

How a failed partnership between Nintendo and Sony created the PlayStation — and one of the fiercest rivalries in entertainment history. Nintendo's betrayal of Sony at CES 1991 is one of the most consequential business decisions ever made.

Canon

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Sony received terrible luck (Nintendo's betrayal) and extracted maximum value from it by channeling corporate anger into the PlayStation project. The same event that could have been a dead-end became a launching pad.

Highlights

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Nintendo's betrayal of Sony created its most dangerous competitor
Nintendo secretly partnered with Philips instead of Sony for CD-ROM technology. The public humiliation at CES 1991 motivated Sony to build the PlayStation as an act of revenge. Nintendo created its own nemesis.