Nintendo has subsidiary Nintendo of America
Branches
Nintendo Co., Ltd.
Headquartered in Kyoto, Japan since the beginning, Nintendo Co., Ltd. oversees the organization's global operations and manages Japanese operations specifically. The company's two major subsidiaries, Nintendo of America and Nintendo of Europe, manage operations in North America and Europe respectively. Nintendo Co., Ltd. moved from its original Kyoto location to a new office in Higashiyama-ku, Kyoto, in 2000; this became the research and development building when the head office relocated to its present location in Minami-ku, Kyoto.Nintendo of America
Nintendo founded its North American subsidiary in 1980 as Nintendo of America (NoA). Hiroshi Yamauchi appointed his son-in-law Minoru Arakawa as president, who in turn hired his own wife and Yamauchi's daughter Yoko Yamauchi as the first employee. The Arakawa family moved from Vancouver, British Columbia to select an office in Manhattan, New York, due to its central status in American commerce. Both from extremely affluent families, their goals were set more by achievement than money—and all their seed capital and products would now also be automatically inherited from Nintendo in Japan, and their inaugural target is the existing $8 billion-per-year coin-op arcade video game market and largest entertainment industry in the US, which already outclassed movies and television combined. During the couple's arcade research excursions, NoA hired gamer youths to work in the filthy, hot, ratty warehouse in New Jersey for the receiving and service of game hardware from Japan.In late 1980, NoA contracted the Seattle-based arcade sales and distribution company Far East Video, consisting solely of experienced arcade salespeople Ron Judy and Al Stone. The two had already built a decent reputation and a distribution network, founded specifically for the independent import and sales of games from Nintendo because the Japanese company had for years been the under-represented maverick in America. Now as direct associates to the new NoA, they told Arakawa they could always clear all Nintendo inventory if Nintendo produced better games. Far East Video took NoA's contract for a fixed per-unit commission on the exclusive American distributorship of Nintendo games, to be settled by their Seattle-based lawyer, Howard Lincoln.Based on favorable test arcade sites in Seattle, Arakawa wagered most of NoA's modest finances on a huge order of 3,000 Radar Scope cabinets. He panicked when the game failed in the fickle market upon its arrival from its four-month boat ride from Japan. Far East Video was already in financial trouble due to declining sales and Ron Judy borrowed his aunt's life savings of $50,000, while still hoping Nintendo would develop its first Pac-Man-sized hit. Arakawa regretted founding the Nintendo subsidiary, with the distressed Yoko trapped between her arguing husband and father.Amid financial threat, Nintendo of America relocated from Manhattan to the Seattle metro to remove major stressors: the frenetic New York and New Jersey lifestyle and commute, and the extra weeks or months on the shipping route from Japan as was suffered by the Radar Scope disaster. With the Seattle harbor being the US's closest to Japan at only nine days by boat, and having a lumber production market for arcade cabinets, Arakawa's real estate scouts found a 60,000-square-foot (5,600 m2) warehouse for rent containing three offices—one for Arakawa and one for Judy and Stone. This warehouse in the Tukwila suburb was owned by Mario Segale after whom the Mario character would be named, and was initially managed by former Far East Video employee Don James. After one month, James recruited his college friend Howard Phillips as assistant, who soon took over as warehouse manager. The company remained at fewer than 10 employees for some time, handling sales, marketing, advertising, distribution, and limited manufacturing: 160  of arcade cabinets and Game & Watch handheld units, all sourced and shipped from Nintendo.
Arakawa was still panicked over NoA's ongoing financial crisis. With the parent company having no new game ideas, he had been repeatedly pleading for Yamauchi to reassign some top talent away from existing Japanese products to develop something for America—especially to redeem the massive dead stock of Radar Scope cabinets. Since all of Nintendo's key engineers and programmers were busy, and with NoA representing only a tiny fraction of the parent's overall business, Yamauchi allowed only the assignment of Gunpei Yokoi's young assistant who had no background in engineering, Shigeru Miyamoto.
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