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During the Fourth Generation, Nintendo had dominated the industry with control of 85 to 90 percent of the market on both sides of the Pacific. They had ruled supreme. Smaller video game companies feared and respected them, none with the clout to usurp their autocracy. This made Nintendo executives feel their company was imperishable. Concerning this, Sheff wrote, "Nintendo ... suffered from a malaise typical of industry leaders. Fat and happy, it had been lulled into a sense of invulnerability. Yamauchi and Arakawa felt they didn't have to react to competitors simply because they were Nintendo."
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