Namco entered the home market in 1984 with conversions of its arcade games for the MSX and the Nintendo Family Computer, later expanding to competing platforms, such as the Sega Genesis, TurboGrafx-16, and PlayStation.

Namco continued to produce hit games in the 1990s, including Ridge Racer, Tekken, and Taiko no Tatsujin, but later endured financial difficulties due to the struggling Japanese economy and diminishing arcade market.

[1][2] The son of a shotgun repair business owner, Nakamura proved unable to find work in his chosen profession of ship building in the struggling post-World War II economy.

[4] It consisted of horse rides, a picture viewing machine, and a goldfish scooping pond, with the centerpiece being a moving train named Roadaway Race.

[17] The market became more viable once restrictions on medal games were imposed by the Japanese government in 1976,[17] as Nakamura Seisakusho began returning higher profits; its import of Atari's Breakout was so successful that it led to rampant piracy in the industry.

[2] As Namco's presence in Japan was steadily rising, Nakajima suggested to Nakamura that he open a division in the United States to increase worldwide brand awareness.

[8] In 1979, Namco published its first major hit Galaxian, one of the first video games to incorporate RGB color graphics, score bonuses, and a tilemap hardware model.

[31][32] Alongside a small team, he created a game named Puck Man, where players controlled a character that had to eat dots in an enclosed maze while avoiding four ghosts that pursued them.

[41][42] Xevious's early usage of pre-rendered visuals,[43] boss fights, and a cohesive world made it an astounding success in Japan,[41][42] recording record-breaking sales figures that had not been seen since Space Invaders.

Though Namco recognized the system's potential to allow consumers to play accurate versions of its games, the company chose to hold off on the idea after its ports for platforms such as the Sord M5 flopped.

[56][73] Though its selloff made Atari Games an independent entity, Namco still held a minority stake in the company and Nakamura retained his position as its board chairman until the middle of 1988.

[85] Namco also developed the beat 'em up Splatterhouse, which attracted attention for its fixture on gore and dismemberment,[87] and Gator Panic, a derivative of Whack-a-Mole that became a mainstay in Japanese arcades and entertainment centers.

[89] With an arcade cabinet that shook and swayed the player as they drove,[88] the game was seen as "a breakthrough product in term of programming technique"[90] and garnered significant attention from the press.

[57] The revocation of Namco's terms enraged Nakamura, who announced the company would abandon Nintendo hardware and focus on production of games for competing systems such as the PC Engine.

[56] In Japan, Namco developed two theme park attractions, which were demonstrated at the 1990 International Garden and Greenery Exposition (Expo '90): Galaxian3: Project Dragoon, a 3D rail shooter that supported 28 players, and a dark ride based on The Tower of Druaga.

[118] Ridge Racer usage of 3D textured polygons and drifting made it a popular title in arcades and one of Namco's most-successful releases, and is labeled a milestone in 3D computer graphics.

[128] Sony moved 100,000 units on launch day alone; publications attributed Ridge Racer to the PlayStation's early success, giving it an edge over its competitor, the Sega Saturn.

[97][134] Though it had signed contracts to produce games for systems such as the Sega Saturn and 3DO Interactive Multiplayer, Namco concentrated its consumer software efforts on PlayStation for the remainder of the decade.

[148] Namco signed a contract with Nintendo that allowed the company to produce two games for the console: Famista 64, a version of its Family Stadium series, and an untitled RPG for the 64DD peripheral.

[149] In October 1998, which one publication described as being "the most stunning alliance this industry has seen in a long while",[150] Namco announced a partnership deal with long-time rival Sega to bring some of its titles to the newly unveiled Dreamcast.

[160][161] The company closed its Wonder Eggs park on December 31, 2000,[162] which by that point saw an attendance number of six million visitors,[163] in addition to shuttering many of its video arcades that returned substandard profits.

[164] In February 2001, Namco updated its projections and reported it now expected a ¥6.5 billion ($56.3M) net loss and a drop in revenue by 95% for the fiscal year ending March 2001, which severely impacted the company's release schedule and corporate structure.

[165][166] The company's earnings forecasts were lowered to accommodate its losses, its development strategy was reorganized to focus largely on established franchises,[165] and 250 of its employees were laid off in what it described as "early retirement".

[171] Its continuing expansion into other non-video game divisions, including rehabilitation electronics and travel agency websites, prompted the creation of the Namco Incubation Center, which would control these businesses.

[183] The two discussed a year prior about a possible business alliance after Namco collaborated with Bandai subsidiary Banpresto to create an arcade game based on Mobile Suit Gundam.

[184] Bandai showed interest in Namco's game development skills and believed combining this with its wide library of profitable characters and franchises, such as Sailor Moon and Tamagotchi, could increase their competitiveness in the industry.

Namco was recognized for the game's worldwide success in 2005 by Guinness World Records;[220] by that timeframe, Pac-Man sold over 300,000 arcade units and grossed over $1 billion in quarters globally.

[64] A staff member of Edge's sister publication, Next Generation, wrote in 1998: "In a world where today's stars almost always become tomorrow's has-beens, Namco has produced consistently excellent games throughout most of its history."

The writer credited the company's connections with its players and its influential releases, namely Pac-Man, Xevious, and Winning Run, as the keys to its success in a rapidly changing industry.

"[223] In 2012, IGN listed Namco among the greatest video game companies of all time, writing that many of its games—including Galaga, Pac-Man, Dig Dug, and Ridge Racer—were of consistent quality and helped define the industry as a whole.