![]() ![]() With that information in hand, the chip was quickly reverse-engineered. After releasing three authorized games, and failing to find a workaround for the 10NES lockout chip, Tengen simply requested information about the chip from the United States Copyright Office under the pretense of pursuing litigation. Various legal issues forced Atari to create a new subsidiary called Tengen to release games for the NES. They even installed a lockout chip on the console that prevented other companies from getting around this by manufacturing their own cartridges. To avoid Atari’s mistakes of oversaturating the market, Nintendo only allowed publishers to release five games per year for the NES. ![]() That’s not quite the end of the Atari-Nintendo story. Tengen Tetris and the Unlicensed Game Cartridges ![]() Famicom sales also started to pick up in Japan, so Nintendo decided to go it alone for the U.S. But just as the misunderstanding was cleared up, Atari’s CEO was forced out and the deal collapsed. Atari figured Nintendo had backed out of the contract, though Nintendo didn’t even know about Coleco’s demonstration. But as the deal neared completion, Atari execs saw at CES 1983 that its competitor, Coleco, was demonstrating Nintendo’s Donkey Kong game on its new Adam home computer. Under this agreement, Atari would have released a home computer called the Nintendo Advanced Video Gaming System that would have included a keyboard and cassette data recorder. Nintendo had just launched the Famicom in Japan in 1983, but early sales were slow, so the company looked to partner with Atari to launch its new console stateside. Atari dominated the home console market but had turned off consumers by flooding stores with too many bad games. In the early ‘80s, the video game market was in complete shambles. The Console Was Initially Going to be Distributed by Atari in the U.S. ![]()
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