Atari Corp. fails to prove losses in antitrust suit; two counts are undecided, but Nintendo is cleared of seeking a monopoly

Article Abstract:

Nintendo of America Inc has been cleared of charges made by Atari Corp that the Japanese video game giant had knowingly and illegally worked to monopolize the US home video game market in the late 1980s. The decision in the antitrust suit was handed down in a San Francisco, CA court in May 1992, and dealt a severe blow to Atari, an American video game giant. While the jury acknowledged that Nintendo had attained monopoly status, it determined that the Japanese firm had not actually attempted to do so. The jury was unable to reach a decision on whether Nintendo had abused its monopoly position once it was achieved. However, it did find that Atari's financial difficulties were not caused by Nintendo. Atari may ask for a retrial on the unresolved counts, despite the general feeling in the industry that Atari's case against Nintendo is over. The judgment may be a landmark for Nintendo, which faces antitrust claims in numerous other lawsuits.

Games, toys, and children's vehicles, Antitrust law, Monopolies, Nintendo of America Inc., Competition, Legal Issues, Stock, Antitrust Issue

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Nintendo suit filed by Atari is going to trial

Article Abstract:

Atari Corp brings Japanese Nintendo Co Ltd to US federal court in San Francisco for allegedly unfair competitive practices. The suit accuses Nintendo of monopolizing 80 percent of the video game market by illegally prohibiting its licensees from making Nintendo games compatible with competitors' systems. The suit claims that the prohibition, which was lifted in Dec 1990, inflated retail prices for such games and equipment to exorbitant degrees. Atari claims that it lost $160 million between 1986 and 1990 as a result of Nintendo's actions. Atari will gain treble damages if the firm wins the case. Meanwhile, Nintendo blames Atari's losses on the US firm's own poor business strategies.

Prepackaged software, Laws, regulations and rules, International competition (Economics), Nintendo Company Ltd., Licensing, Antitrust Laws, Japanese Competition

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