Basically.
When the Famicom came out in Japan the only real competition previously had been Pong machines, as the country's home gaming scene was behind the rest of the world (the arcade scene was huge though), Nintendo not only invested a ton of money in designing the Famicom, they actually staked their whole company on it, as the head of the company made a deal with some of the parts manufacturers to buy millions in advance as it was the only way to get the prices he wanted, they also came up with the plan that the console itself would be sold for little to no profit, as they believed they could make their money on the games.
At the same time the Famicom was released, Sega came up with the SG-1000, which was essentially a Colecovision machine. The gulf in power between the two machines was huge, and really showed how far the gamble + R&D + selling for around cost had put Nintendo ahead of the Japanese competition (in fact SG-1000 itself was actually still noticeably superior to machines coming out from other manufacturers for the next year in Japan, as may others were releasing Intellivision-level machines even a year later!)
At first Famicom was 1st party only, but in 1984 Nintendo allowed a select few 3rd party companies develop for it (Hudson, and Namco 1st I believe), a year later the Famicom was huge and all-encompasing in Japan, it basically had a monopoly there, Nintendo opened up to all 3rd parties so long as they agreed to a licensing contract, Nintendo ramped up their licensing prices, everything had to be console exclusive to Famicom for 2 years, all cartridges had to be made by them, cartridge orders had to exceed a certain amount, and everything had to be paid in advance (so basically Nintendo kind of forced the 3rd parties to take the risks and even if a game was a big failure they would make a killing from the cartridge orders), other than that there were some other rules, such as no religious elements, and no blood and gore, but these were mainly Nintendo of America stipulations and I don't think they affected Japan at all.
Another thing to take into account here is that Nintendo charged double for each cartridge they manufactured (on top of the licensing fee), this allowed them to fix the competition somewhat as their games would have double the amount of ROM than the 3rd party-made games, but for the same price. If the 3rd parties wanted to release games of a similar level they would have to take less profits, or increase the price of their releases to pay for the ROM.
In the late 80s the boss of Namco spoke out about Nintendo and said they were essentially committing unfair business practices, Nintendo basically replied that if Namco didn't like dealing with them then they should go elsewhere, Namco attempted to support the PC-Engine, and the Mega Drive, but Nintendo had a monopoly and Namco's company started nosediving as they were no longer supporting the biggest player in the home gaming scene. Namco asked to come back to making Famicom games and Nintendo's boss made Namco's boss make a public apology in regards to what he'd said about Nintendo.
This incident helped to tighten Nintendo's grip on the other Japanese 3rd party companies and made them wary of going against Nintendo.
New consoles had difficulty taking market share away from Nintendo as everything they received from 3rd parties would be 2 years out of date, 3rd parties could release new games on competing consoles but that would exclude said games from the huge Famicon market, which was a risk.
Obviously in the late 80s you guys in the US started buying NES' en-mass and that system had a virtual monopoly their too, and the US was where all the money was so it made supporting other consoles even more of a bad idea for 3rd parties.
During the 16-bit era things started to loosen up a bit due to the Genesis' US success, but in Japan Nintendo still had an iron grip with the Super Famicom, and a lot of the Japanese 3rd parties were still getting the majority of their business from Japan.
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