The Washington headquarters where Mario was born and Zelda got her American name

Nintendo of America (Washington)

Minoru Arakawa started Nintendo of America in 1980 at the request of his father-in-law, Nintendo president Hiroshi Yamauchi.

The company began in New York City with Arakawa and his wife Yoko running a small operation. Money from arcade hits like Donkey Kong funded a big move in 1982.

Arakawa bought 27 acres in Redmond, Washington, creating a permanent home for Nintendo’s American business.

The Redmond location worked well for shipping games from Japan. From this headquarters, Arakawa led the company for 22 years, growing it from a tiny office into an entertainment giant.

The Video Game Crash of 1983

The American video game market collapsed in 1983. Industry sales dropped from $3.2 billion to just $100 million by 1985, a devastating 97% decline.

Too many game systems and hundreds of poor-quality games flooded stores.

Market leader Atari hurt itself by rushing bad games, including the famously terrible E.T. game. Stores got stuck with games nobody wanted.

They removed game sections and refused to stock new products. Many experts said home video games were just a passing fad. For Nintendo, this disaster created a chance to rebuild the market their way, without much competition.

Rebranding the Famicom for America

Nintendo needed to change their Japanese Famicom for American customers.

Designers Lance Barr and Don James transformed the bright red and white Famicom into something new.

They created a gray and black system with a front-loading slot like a VCR, a familiar household item. They changed the words too.

“Video game system” became “Nintendo Entertainment System.” Game cartridges became “Game Paks,” and the console became a “Control Deck.”

This careful rebranding helped Nintendo distance itself from failed game systems. The NES looked more like serious home electronics than a toy.

The R.O.B. Strategy to Enter Toy Stores

Stores refused to stock video games after the crash.

Nintendo solved this problem with R.O.B., the Robotic Operating Buddy, a small gray robot that moved objects in response to on-screen actions.

R.O.B. helped Nintendo market the NES as a toy rather than a video game.

Though R.O.B. only worked with two games – Gyromite and Stack-Up – it convinced toy stores to stock the $179.99 Deluxe Set.

Most players quickly focused on controller-based games, but R.O.B. had done its real job: getting Nintendo past store buyers who wanted nothing to do with video games.

The New York Test Market Launch

Nintendo picked New York City for its first American test on October 18, 1985. They shipped 100,000 systems and sold nearly 90,000 in nine weeks, far better than expected.

The launch included 17 games in black boxes, including Duck Hunt and Super Mario Bros. After New York succeeded, Nintendo expanded to Los Angeles in February 1986.

These careful regional tests let Nintendo improve their approach before a nationwide launch. The strategy built excitement while limiting risk.

Nintendo’s No-Risk Retail Proposition

Even after good test results, stores hesitated to stock video games. Arakawa created an offer that stores couldn’t refuse.

Nintendo even handled store setup and marketing themselves. Nintendo gave retailers 90-day credit on all NES products. Stores paid nothing upfront.

Most importantly, Nintendo promised to buy back all unsold systems after 90 days, eliminating any risk of lost money.

Arakawa made this bold offer without telling Nintendo headquarters in Japan, knowing such generous terms might not get approval.

The risk-free approach worked. Stores gradually signed on, unable to resist an offer that couldn’t lose money.

The Nintendo Seal of Quality

Nintendo created the Seal of Quality to rebuild trust.

This black and gold seal appeared on every game box and cartridge, showing the game met Nintendo’s standards.

The seal meant games would run well on the NES and had family-friendly content without excessive violence. Game companies needed to follow Nintendo’s rules to earn the seal, and were limited to releasing just five games each year.

Super Mario Bros. Becomes a Phenomenon

Super Mario Bros. drove the NES to success more than any other game.

Created by Shigeru Miyamoto and Takashi Tezuka, it launched in Japan in September 1985 before reaching America with the NES.

Nintendo bundled the game with the system during nationwide release, ensuring millions played it.

The colorful adventure featured Mario rescuing Princess Toadstool from Bowser, with precise controls and increasing challenges.

The game sold over 40 million copies worldwide. It established Mario as Nintendo’s mascot, a position he still holds today. Its influence shaped video games for generations.

Nationwide Expansion Through Worlds of Wonder

To reach stores across America, Nintendo partnered with toy company Worlds of Wonder, makers of Teddy Ruxpin and Lazer Tag.

This gave Nintendo access to an established sales network. Worlds of Wonder used aggressive tactics to get the NES on store shelves.

Their salespeople often told retailers they needed to carry Nintendo to keep getting popular Worlds of Wonder toys.

This pressure helped break through remaining store resistance.

The partnership enabled Nintendo’s full nationwide release on September 27, 1986, reaching major chains like Sears and Kmart.

This alliance helped Nintendo overcome distribution challenges they couldn’t have solved alone.

First Year Market Performance

Nintendo’s first full year brought amazing results.

They sold 1.1 million NES systems in 1986, far exceeding expectations for a supposedly dead market.

These sales brought in $310 million, the bulk of the industry’s $430 million total that year. This marked a huge jump from 1985’s $100 million industry total.

By 1988, Nintendo held 70% of the home video game market.

Major retailers Sears and Kmart became key sellers, with Sears featuring the NES in its Christmas catalog. Nintendo believed they could have sold 1.4 million units if they had enough supply.

In just over a year, they went from uncertain newcomer to industry leader.

Visiting Nintendo of America

Nintendo of America headquarters is located at 4820 150th Ave NE, Redmond, WA 98052.

Unfortunately, the headquarters does not offer public tours or visitor access to its main campus. You cannot enter the building or grounds without a business appointment or employee escort.

If you’re interested in Nintendo history and products, visit Nintendo NY at 10 Rockefeller Plaza in New York City instead.

This official store is open Monday through Saturday from 10am to 7pm and Sunday from 11am to 6pm.

Entry is free, and you can play game demos, view historical displays, and purchase exclusive merchandise.

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