Reminds me of Nintendo Seal of Quality for the NES. The uncontrolled amount of crap games coming out for Atari was the demise of the home videogame wave at that time.
Nintendo felt the need to closely control the supply of games and their quality to "guarantee" a good experience.
> Nintendo with its lockout chip held an absolute stranglehold on supply of NES games that came out
Yes, not only did Nintendo possess the unilateral authority to decide which games got published, but Nintendo was the sole manufacturer of the game cartridges.
This meant that Nintendo decided when those cartridges would be manufactured, and set an upper limit on the quantity. (Plus, they required you to pay for the manufacturing in advance.)
The fact that they controlled the manufacturing schedule meant that they might delay your cartridges if they had a first-party game in the pipeline which might compete with yours.
Nintendo felt the need to closely control the supply of games and their quality to "guarantee" a good experience.