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 gaming in Japan
In 1991, "Final Fantasy IV" was one of the first role-playing games to feature a complex, involving plot, placing a much greater emphasis on character development, personal relationships, and dramatic storytelling. It also introduced a new battle system: the "Active Time Battle" system, developed by Hiroyuki Ito, where the time-keeping system does not stop. The fact that enemies can attack or be attacked at any time is credited with injecting urgency and excitement into the combat system. The ATB combat system was considered revolutionary for being a hybrid between turn-based and real-time combat, with its requirement of faster reactions from players appealing to those who were more used to action games.
Nintendo executives were initially reluctant to design a new system, but as the market transitioned to the newer hardware, Nintendo saw the erosion of the commanding market share it had built up with the Nintendo Entertainment System. Nintendo's fourth-generation console, the Super Famicom, was released in Japan on November 21, 1990; Nintendo's initial shipment of 300,000 units sold out within hours. Despite stiff competition from the Mega Drive/Genesis console, the Super NES eventually took the top selling position, selling 49.10 million units worldwide, and would remain popular well into the fifth generation of consoles. Nintendo's market position was defined by their machine's increased video and sound capabilities, as well as exclusive first-party franchise titles such as "Super Mario World", "" and "Super Metroid".