The Japanese video game company Nintendo was founded in 1889 to produce and distribute karuta (かるた, from Portuguese carta, 'card'), most notably hanafuda (花札, 'flower cards').
Hanafuda cards had become popular after Japan banned most forms of gambling in 1882 but largely left hanafuda untouched. Sales of hanafuda cards were popular with the yakuza-ran gaming parlors in Kyoto.
Other card manufacturers had opted to leave the market not wanting to be associated with criminal ties, but Nintendo founder Fusajiro Yamauchi continued, becoming the largest producer of hanafuda within a few years. With the increase of the cards' popularity, Yamauchi hired assistants to mass-produce to satisfy the demand.
Even with a favorable start, the business faced financial struggle due to operating in a niche market, the slow and expensive manufacturing process, high product price, alongside long durability of the cards, which impacted sales due to the low replacement rate.