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By 1989, games for the Nintendo Entertainment System accounted for 40 % of Namco's sales.
As Nintendo's first licensee, Namco had previously been given privileged terms, such as the right to manufacture their own cartridges.
However, upon renewal of the license, these special terms were revoked, prompting Nakamura to publicly criticize Nintendo for monopolistic behavior.
In addition, Nakamura announced that Namco would support Sega's Mega Drive / Genesis console, which eventually received most of the better productions the company developed for the home market in the 16-bit era.

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