The simplest way to explain this is by talking about the first gaming companies. This were mainly Atari, Taito, Sega, Nintendo and Konami.
Atari was one of the first ones. It was created in 1972. During that year they released the very well known game "pong", which made Atari very famous. This company showed the potential games could end up having and encouraged other people to join to this new market.
Extra Info:
Another company that came out from Atari is a famous computer company or "phone" company called apple.
Atari Video Game company - URL of the image: http://www.giantbomb.com/atari/3010-182/
Another company that was created in america was Service Games. This company was moved to Japan and in 1965 they merged with Rosen Enterprises to create SEGA. SEGA created the fantastic saga called Sonic; saga that is still being continued till the present day.
The other three companies (Nintendo, Taito and Konami) were created in Japan.
Nintendo was created in 1889 by Fusajiro Yamauchi and it's main purpose was the creation of playing cards until the early 1970's.
Nintendo is very well known for the quality gaming consoles that they put into the market.
Right now Nintendo is one of the biggest and wealthiest gaming companies in the world.
Taito was a company created by Michael Kogan which was mainly in charge of the rental of jukebox machines. Taito became very famous after they released the arcade game called space invaders.
Konami was another jukebox rental company created by Kagemasa Kozuki in 1969. Kozuri changed the company into a game company in 1973. Their first game didn't appear until 1978. They created the new version for space invaders and pong at first, but as time passed their games started to get more and more creative. Frogger was their biggest success, and which made this company one of the "big ones" for the video game market.
Frogger - Konami video game
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