00:00:00
So this is the juicy story around the Sony PlayStation. The Sony PlayStation ended up being like
00:00:06
one of the prime competitors of Nintendo. And so you might think like, oh, the two were always competitors, but
00:00:12
not at all. Sony was actually a supplier to Nintendo. The two had actually partnered in developing a console
00:00:19
together. And so Sony had no intention whatsoever to enter the console market on its own. So they developed this thing
00:00:27
for Nintendo and they have this expectation. They go to this big game fair and say we are going to announce
00:00:34
this collaboration with Nintendo and it's going to be great. And they do exactly that. They go to the game fair
00:00:40
and say like great news we are Sony. We got this collaboration going with Nintendo.
00:00:48
The next day, Nintendo announces another collaboration with Phillips that they also develop a game console with them.
00:01:00
And so Sony says like what on earth is going on? We thought we are collaborating and conquering this
00:01:05
market. Now you are telling us you're collaborating with us but you also see
00:01:09
at the same time seem to be competing with us. And so they were horrified and they felt insulted and they said like
00:01:16
this is insane. We are now feeling no loyalty whatsoever towards Nintendo. We are going to enter this market
00:01:23
ourselves. We have built up all this knowledge. Okay? We don't have to hold back. They didn't treat us well. And so
00:01:29
we enter this market. What's interesting about this example is both parties can
00:01:34
get screwed. Right? In this example, Sony gets screwed because they get ripped off by Nintendo. But Nintendo
00:01:40
eventually gets screwed because of the way that Sony then responded to it and said like, "Look, we going to fight
00:01:46
back. We are not going to take this.