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.
Video game console
In 1983, Nintendo released the Family Computer (or Famicom) in Japan. The Famicom supported high-resolution sprites, larger color palettes, and tiled backgrounds. This allowed Famicom games to be longer and have more detailed graphics. Nintendo began attempts to bring their Famicom to the U.S. after the video game market had crashed. In the U.S., video games were seen as a fad that had already passed. To distinguish its product from older game consoles, Nintendo released their Famicom as the Nintendo Entertainment System (NES) which used a front-loading cartridge port similar to a VCR, included a plastic "robot" (R.O.B.), and was initially advertised as a toy. The NES was the highest selling console in the history of North America and revitalized the video game market. Mario of Super Mario Bros. became a global icon starting with his NES games. Nintendo took a somewhat unusual stance with third-party developers for its console. Nintendo contractually restricted third-party developers to three NES titles per year and forbade them from developing for other video game consoles. The practice ensured Nintendo's market dominance and prevented the flood of trash titles that had helped kill the Atari, but was ruled illegal late in the console's lifecycle.