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Nintendo offered Atari the rights to distribute the NES in America - Atari declined.
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Nintendo walked the year before Atari being divided up. In 1983, CEO Ray Kassar left Atari and no one could make a final decision on the Nintendo deal. Good thing Ray Kassar didn't go to work at Nintendo or we would have never seen the NES. He thought video games were just a FAD! Here today-gone tomorrow! Just like he was! How ironic!