What Happened On September 23rd?
On September 23, 1889, Fusajiro Yamauchi opened a small shop in Kyoto, Japan, with the goal of producing handmade hanafuda playing cards. These traditional cards, adorned with intricate floral designs, were deeply rooted in Japanese culture. Yamauchi’s objective was to craft high-quality cards that would appeal to the public’s growing interest in unique, well-made games. From that simple beginning, Nintendo started its journey into what would later become the entertainment world.
Yamauchi quickly began using mulberry bark, a strong material known for its durability, to make the cards long-lasting. Each card was hand-painted, setting his hanafuda decks apart from other, mass-produced products. The superior craftsmanship of Nintendo’s cards soon became known throughout Kyoto, leading to a surge in demand. As orders increased, Yamauchi hired more workers to meet the demand, rapidly expanding his once small shop into a much larger operation.
At that time, hanafuda cards had a unique place in Japanese society. While card games were commonly linked to gambling, which was heavily regulated, hanafuda cards avoided these restrictions due to their cultural significance. The floral imagery and seasonal motifs tied the cards more to Japanese tradition than to gambling. As a result, Yamauchi could operate legally without facing the legal hurdles that often plagued competitors. This gave Nintendo an advantage, helping it grow during a period when many card companies struggled under legal pressure.
As Nintendo’s cards grew in popularity, the company expanded beyond Kyoto. By the early 1900s, Nintendo’s hanafudacards had become popular across Japan. An often-overlooked contributor to this early success was the yakuza, Japan’s organized crime syndicates. The yakuza frequently used hanafuda cards in their gambling dens, where the custom of playing long, drawn-out card games was widespread. Many yakuza families commissioned custom-made decks from Nintendo, sometimes ordering exclusive designs with symbols that represented their syndicates. These orders provided Nintendo with a steady flow of income, which helped stabilize the business in tough financial times, particularly during economic downturns that hit other businesses hard.
In 1902, Yamauchi made a significant business move by introducing Western-style playing cards to the Japanese market. Japan’s growing fascination with Western culture, especially in port cities, had made these games increasingly popular. Recognizing this trend, Yamauchi became one of the first in Japan to produce Western-style cards domestically. Unlike many competitors who relied on imports, Nintendo manufactured the cards in Japan, which gave it an edge. The Western cards allowed Nintendo to appeal to a wider audience while maintaining its existing customer base with traditional hanafuda. This early diversification helped solidify Nintendo’s presence in Japan’s entertainment industry.
Despite the company’s expanding success, Japan’s economy experienced a severe downturn in the late 1920s and early 1930s. Demand for luxury goods, including playing cards, dropped sharply. During this time, Fusajiro Yamauchi retired and handed control of the company to his son-in-law, Sekiryo Kaneda, who later took the Yamauchi family name. Sekiryo responded swiftly to the economic crisis by restructuring Nintendo’s operations, reducing costs, and centralizing production to ensure the company’s survival. One often-forgotten fact is that during this period, Sekiryo negotiated exclusive deals with high-end retailers in Japan to sell Nintendo’s hanafuda and Western-style cards, ensuring they reached more affluent customers even in difficult economic times.
In the 1950s, Fusajiro’s grandson, Hiroshi Yamauchi, took control of the company. Hiroshi’s vision was broader than his predecessors’. His ambition was to transform Nintendo into a company that explored more than just playing cards. One of his first major business moves came in 1959 when he secured a licensing agreement with Disney, which allowed Nintendo to produce playing cards featuring Disney characters. The partnership was a huge success, particularly in post-war Japan, where Disney’s characters appealed to younger audiences. The Disney-themed cards brought Nintendo into the homes of families, significantly boosting the company’s reach and helping it transition from a small, traditional card company into an entertainment business.
Hiroshi continued pushing Nintendo into new territories during the 1960s. Under his leadership, Nintendo expanded into toys, board games, and even ventured into food products. Nintendo’s brief venture into the food industry, particularly with instant rice, reflected Hiroshi’s willingness to explore unconventional markets. Although the instant rice business was short-lived, it demonstrated the company’s readiness to take risks in industries far removed from its origins. Interestingly, Hiroshi also introduced automated card-shuffling machines during this time, a product aimed at making card games more accessible and convenient. The card-shuffling machines were popular in arcades and with serious card players, adding an additional revenue stream for the company.
During the 1960s, Nintendo also experimented with a variety of other ventures, including a taxi service in Kyoto. Although this endeavor eventually failed, it showed Hiroshi’s forward-thinking approach to diversifying Nintendo’s operations. His willingness to try out new ideas—regardless of the risk—positioned Nintendo as a company not afraid to innovate in unexpected ways.
While the company branched out into various industries, Nintendo retained its connection to its roots. It continued producing hanafuda cards well into the 20th century, long after its focus had shifted toward toys and electronics. The company’s ability to preserve this link to its cultural past while embracing modern entertainment trends helped set Nintendo apart from its competitors. This mix of tradition and innovation played a crucial role in establishing Nintendo’s unique identity in the entertainment world.
As Nintendo explored new markets, its early attention to detail in crafting hanafuda cards influenced the way the company approached future products. When Nintendo entered the video game industry in the 1970s, it carried with it the same values that had made it successful in the card business: creativity, quality, and a willingness to take calculated risks. These principles set Nintendo apart from its competitors and laid the foundation for the company’s transformation into one of the world’s most innovative entertainment companies.
