2min chapter

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Nintendo's Origins

Acquired

CHAPTER

Scale Economy - The Number One Source of Power

It's a good question. The reason scale economies jump to mind is we just keep talking about it on this episode without naming it. And when we talk about things like Nintendo produced the most desirable console, which all the consumers bought, then meant that Nintendo had power over its developers. A game was worth way more on Nintendo for the NES's distribution than it was worth anywhere else. It almost doesn't matter how bad the terms are with Nintendo, you have to build for Nintendo because there's more money there.

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