| Summary: | In 1994, a struggling Apple Computer developed the Pippin operating system for a television set-top appliance based on its successful Macintosh operating system. It determined that there was great opportunity in the video game industry, and decided Pippin was best suited as an operating system in the video game console market. In order to enter the market, it intended to license Pippin to console manufacturers. The video game console market was extremely strong, having sold twice the number of consoles as computer manufacturers had sold PCs, but stiff competition often resulted in a winner-take-all or two-winners-take-all outcome. Despite heavy competition, Apple's leaders expected Pippin to be a savior for the faltering company. By 1995, only a single manufacturer had licensed Pippin from Apple.
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