The notion that innovation is tied to creative destruction is embedded in the psyche of innovators and entrepreneurs, which is why individuals and companies instinctively focus on disruption in pursuit of innovation and growth. But is disruption the only way to innovate and create new markets? And is it the best way?

The home video-game market in Japan was relatively small and the market in the US was on the verge of collapse. In Japan, Nintendo could expect stiff competition from a number of companies in, or actively considering an entry in this market. This did not look a good time for Nintendo to make an entry. Conventional strategic thinking would suggest that it is a suicidal action to enter the market.