Universal sued Nintendo over Donkey Kong just a few years before this.

I know a lot can happen in just a few years, but I still find it surprising that they could put their differences aside and work together on what is pretty much a story-based feature-length commercial for Nintendo games and one horrid peripheral.

Which reminds me, maybe Lucas Barton actually did mean the Power Glove was bad in a negative way. He was probably showing off his skills with a handicap, and people who saw him use it would think: "Imagine how great he is with a controller that doesn't suck!" Well, that's the impression I got when I first saw the movie anyway, since I'd had experience with that thing myself.