Introduction:-The key characteristics of the video game industry till 1995 has gone through 4 phases The rise and fall of Atari: - Atari was one of the early players in the video game industry, who developed a home version of the popular arcade game Pong .First generation machines --individuals to play interactive games on the family TV or stand alone machines. Second generation machine --a programmable video game console with removable cartridges to play different games on a single platform. Soon, the industry was booming with large no. of players entering the market with an intention of getting early profit. This led to introduction of newer platforms and consumers are apparently confused by the number of incompatible platforms and sales dropped drastically. Many consumers started buying software compatible on Atari's hardware and this led to Atari's bankruptcy. Nintendo Emerges:- The aftermath of the "crash of 1984" created a favorable environment, which helped the entrance of players like Nintendo .NES also followed "razors and blades" strategy of accepting smaller hardware margins in exchange for larger margins on software. Nintendo was in both hardware and software and maintained its control over number of games produced, underlying hardware, distribution channels and third party software development for its systems .It followed closed architecture platform. ...