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License guidelines

Nintendo of America also had guidelines before 1993 that had to be followed by its licensees to make games for the Nintendo Entertainment System, in addition to the above content guidelines. Guidelines were enforced through the 10NES lockout chip.

The last rule was circumvented in several ways; for example, Konami, wanting to produce more games for Nintendo's consoles, formed Ultra Games and later Palcom to produce more games as a technically different publisher. This disadvantaged smaller or emerging companies, as they could not afford to start additional companies. In another side effect, Square Co. (now Square Enix) executives have suggested that the price of publishing games on the Nintendo 64 along with the degree of censorship and control that Nintendo enforced over its games, most notably Final Fantasy VI, were factors in switching its focus towards Sony 's PlayStation console.

In 1993, a class action suit was taken against Nintendo under allegations that their lockout chip enabled unfair business practices. The case was settled, with the condition that California consumers were entitled to a $3 discount coupon for a game of Nintendo's choice.