History of Nintendo
Their first video arcade game was 1975's "EVR Race"; a handful of others followed in the next several years, "Radar Scope" and "Donkey Kong" being among the most famous of these. The early 1980s saw Nintendo's video game division (led by Yokoi) creating some of its most famous arcade titles. The massively popular "Donkey Kong" was created in 1981, with Shigeru Miyamoto as its mastermind, and released in the arcades and on the Atari 2600, Intellivision, and ColecoVision video game systems (although Nintendo themselves generally had no involvement with these early console ports). This release method would be used on several later Nintendo arcade games of this same period, including the original "Mario Bros." (not to be confused with the later "Super Mario Bros.") In addition to this arcade and dedicated console game activity, Nintendo was testing the consumer handheld video game waters with the Game & Watch.
Handheld game console
In 1979, Gunpei Yokoi, traveling on a bullet train, saw a bored businessman playing with an LCD calculator by pressing the buttons. Yokoi then thought of an idea for a watch that doubled as a miniature game machine for killing time. Starting in 1980, Nintendo began to release a series of electronic games designed by Yokoi called the Game & Watch games. Taking advantage of the technology used in the credit-card-sized calculators that had appeared on the market, Yokoi designed the series of LCD-based games to include a digital time display in the corner of the screen. For later, more complicated Game & Watch games, Yokoi invented a cross shaped directional pad or "D-pad" for control of on-screen characters. Yokoi also included his directional pad on the NES controllers, and the cross-shaped thumb controller soon became standard on game console controllers and ubiquitous across the video game industry since. When Yokoi began designing Nintendo's first handheld game console, he came up with a device that married the elements of his Game & Watch devices and the Famicom console, including both items' D-pad controller. The result was the Nintendo Game Boy.