Bandai thought Tamagotchi was a niche toy for girls — it became a global phenomenon

In 1996, Bandai partnered with WiZ to launch the Tamagotchi, a virtual pet that lived inside a keychain-sized egg. The toy was developed by Akihiro Yokoi and Aki Maita. It was marketed as a niche product for teenage girls. The concept was simple: users cared for a digital creature that hatched from an egg, and the creature needed feeding, cleaning, and attention.

Bandai's expectations were modest. The company produced a limited initial run. But the Tamagotchi became an instant phenomenon. Demand far exceeded supply. Bandai was caught completely off guard. The toy sold out within hours of launch. Retailers were overwhelmed. The company had to scramble to increase production.

The craze spread globally. In the US and Canada, 12 million Tamagotchis were sold. The toy became a cultural touchstone of the 1990s. Bandai had treated the product as a minor release, and the demand was overwhelming. The company was unprepared for the scale of the success.

However, the success created its own problems. Bandai overproduced to meet demand, and when the craze faded by 1998, the company was left with millions of unsold units. The overproduction cost Bandai 6 billion yen. But the total lifetime sales reached 98 million units by 2025, making it one of the most successful toys of all time.