Nintendo strictly controls the production of games for its machines. In Japan, no other company can create games for the machine. The Federal Trade Commission disal-lowed that strict position in the United States. But even so, vendors must first get approval from Nintendo and pay a royalty fee for every cartridge sold—reportedly as much as $10 per cartridge for the early systems. After eight years of selling the original machine, Nin-tendo took a risk with the Super NES in 1990 by producing a machine that was incompati-ble with the earlier cartridges. Yet, in the 1990s, Sega was the dominant company in the video games market. [Nintendo.com, Halper 1993, and Calrton 1995].
Before Christmas sales in 1993, Sega of America controlled almost
Nintendo strictly controls the production of games for its machines. In Japan, no other company can create games for the machine. The Federal Trade Commission disal-lowed that strict position in the United States. But even so, vendors must first get approval from Nintendo and pay a royalty fee for every cartridge sold—reportedly as much as $10 per cartridge for the early systems. After eight years of selling the original machine, Nin-tendo took a risk with the Super NES in 1990 by producing a machine that was incompati-ble with the earlier cartridges. Yet, in the 1990s, Sega was the dominant company in the video games market. [Nintendo.com, Halper 1993, and Calrton 1995].Before Christmas sales in 1993, Sega of America controlled almost
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