Yamauchi ordered Yokoi to develop it as a proper product for the Christmas rush.
Released as the "Ultra Hand", it would become one of Nintendo's earliest toy blockbusters, selling over a million units.
In 1966, Yamauchi was observing a hanafuda factory.
He noticed an extending arm, which was made by one of their maintenance engineers, Gunpei Yokoi, for his own amusement.
Yokoi went on to develop many other toys, including the Ten Billion Barrel puzzle, a baseball throwing machine called the Ultra Machine, and a Love Tester.
Another invention of his, in collaboration with Masayuki Uemura from Sharp, was the Nintendo Beam Gun Game, the precursor to the NES Zapper (which was used in games like Duck Hunt.).
It could play pre-programmed rhythms from disc-shaped punch cards, which could be altered or programmed by the user, to play different patterns.
In 1947, Sekiryo established a distribution company, Marufuku Co., Ltd., to distribute the Hanafuda cards, as well as several other brands of cards that had been introduced by Nintendo.
Sekiryo Yamauchi also had only daughters, so again his son-in-law (Shikanojo Inaba, renamed Shikanojo Yamauchi) was adopted into the family.
Japanese households stopped buying playing cards, and the price of Nintendo stock fell from 900 yen to 60 yen.
Riddled with debt, Nintendo struggled to survive in the Japanese toy industry; it was still small at this point, and dominated by already well-established companies such as Bandai and Tomy.
The name "Nintendo" is commonly assumed to mean "leave luck to heaven", but there are no historical records to validate this assumption.