How Nintendo Legally Crushed Atari

2025-04-16
How Nintendo Legally Crushed Atari

This article recounts the epic legal battle between Atari and Nintendo, and how it shaped the gaming industry. Atari initially challenged the bundled console-cartridge model with Activision, but ultimately failed in the 1983 crash. Nintendo, with its NES, introduced a lockout chip to prevent unauthorized games. Atari (Tengen) attempted to reverse-engineer this, but lost due to their lawyers' fraudulent actions. The case established fair use principles for reverse engineering but highlighted the crucial role of legal strategy in tech. While Atari technically won the right to reverse engineer on principle, their lawyers' dishonesty cost them the case.

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