Custer's Revenge, I think. There are moments in gaming that I can point to and say, "Yeah, that was pretty stupid, how could anybody possibly justify/defend that?" but Custer's Revenge is the only thing I know of that literally makes me cringe and wish it never existed. Even the most brutal of DRMs, bad marketing or bad game design have something to teach people or the industry as a whole, but that, well...
Well, actually, I guess it does technically teach us something, but it's something that people should already know in the first place.
I don't know if this qualifies, as it's only embarrassing to the Nintendo company. But, to them, it is very likely the most embarrassing thing of ALL TIME, so I figure it's worth a mention.
Around 1986, a number of game companies were experimenting with a revolutionary alternative to game cartridges: CDs with games on them! Nintendo, always eager to try something new, decided to release a CD - based console ASAP. There was only one problem: The cartridge - based SNES, Nintendo's flagship console at the time, was still selling like hotcakes, and it was far too early to introduce a replacement.
So, Nintendo decided to have Sony develop a CD adapter for the SNES!
For Sony, this was a new and exciting challenge. (Remember, at this time, Sony had never even CONSIDERED entering the video game market!) Their best people went to work right away, and an interesting little device was soon in development.
However, just as Sony were ready to unveil the result, Nintendo decided - for reasons unknown - to cancel the order and have Philips develop the adapter instead. Just to rub it in, this announcement was made at the 1991 Consumer Electronics Show in the presence of at least one Sony representative.
Some time later, the Philips CD adapter hit the market - and proved violently unpopular. It was ugly, noisy and overpriced, and as game developers saw next to no potential in it, there was also a disastrous lack of decent games for it. Nintendo ended up losing MASSIVE amounts of money.
Meanwhile, at Sony...
"OK, Nintendo backed out, and here we are - stuck with a CD adapter and no SNES to put it on. Hmmm... Suppose we could make it work WITHOUT a SNES...?"
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