PlayStation “Nintendo Betrayed Sony, and Sony Built an Empire From the Revenge”

In June 1991, Sony stood on a stage in Chicago ready to unveil a game console built with Nintendo. The next morning, Nintendo announced a deal with Sony's rival. Sony was dumped in front of the entire industry, and that humiliation became the birth of PlayStation. This is the story of how a company known for TVs and Walkmans turned a public betrayal into one of the biggest gaming brands on Earth. CHAPTERS 0:00 Chicago, June 1991: The Betrayal 0:47 How Nintendo Ruled the 1980s 1:07 Ken Kutaragi's Secret Sound Chip 1:40 The Sony–Nintendo CD Deal 1:59 The Catch Hidden in the Contract 2:15 Nintendo Turns to Philips 2:52 Sony Computer Entertainment Is Born 3:11 E3 1995: "$299" 3:50 PlayStation 1 and PlayStation 2 4:13 The PlayStation 3 Stumble 4:41 The PlayStation 4 Comeback 5:07 PlayStation Today 5:59 The Irony ABOUT THIS VIDEO Was it a betrayal or just smart business? Sony saw it as a betrayal, while Nintendo saw it as self-defense, protecting control over its own platform. This video covers both sides, then follows what Sony did next: building its own console, winning developers with cheap CDs and fair terms, and taking on the market leader. LATEST NUMBERS Figures for the PS5 (about 95 million sold), PlayStation's 125 million monthly active accounts, and the gaming division's revenue and operating income come from Sony's earnings for the quarter ended June 30, 2026. Note that revenue was flat in that quarter, and the profit increase was helped by currency movements and tariff refunds. SOURCES Sony Group earnings report (Form 6-K), quarter ended June 30, 2026: https://www.sec.gov/Archives/edgar/data/00... Thurrott, "PlayStation 5 Sales Hit 95.3 Million Units": https://www.thurrott.com/games/playstation... A note on the early history: some details of the 1991 events, such as Ken Kutaragi's reaction and Sega's rejection of Sony, come from widely repeated accounts that vary between sources, so we describe them as reported. If you enjoy stories about the companies behind the brands you know, subscribe to The Timeline Tab so you don't miss the next one. DISCLAIMER This is an independent educational video. All illustrations are original artwork. Company names and trademarks belong to their respective owners and are used only for identification and commentary. #PlayStation #Sony #Nintendo #BusinessHistory #VideoGameHistory #CompanyHistory