Nintendo started out as a small Japanese business, founded by Fusajiro Yamauchi on September 23, 1889, as Nintendo Koppai. Based in Kyoto, Japan, the business produced and marketed Hanafuda cards. In recognition of its card-playing roots, the name “Nintendo” means “leave luck to heaven”. The cards, which were all handmade, soon began to gain popularity, and Yamauchi had to hire assistants to mass produce cards to keep up with demand.

Fusajiro Yamauchi did not have a son to take over the family business. Following common Japanese tradition, he adopted his son-in-law, Sekiryo Kaneda (Sekiryo Yamauchi, after the marriage). In 1929, Yamauchi retired from the company and allowed Sekiryo Yamauchi to take over the company as president. In 1933, Sekiryo Yamauchi established a joint venture with another company and renamed the company Yamauchi Nintendo & Company.

In 1947, Sekiryo established the company Marufuku Company, Ltd., to distribute the Hanafuda cards, as well as several other brands of cards that had been introduced by Nintendo. Sekiryo Yamauchi also had only daughters, so again his son-in-law (Shikanojo Inaba, renamed Shikanojo Yamauchi) was adopted into the family. Shikanojo never became president because he left his family. Subsequently, his son Hiroshi was brought up by his grandparents. Hiroshi later took over the company instead of his father.