Video Game Console Growth And Several Generation

First generation
Main article: History of video game consoles (first generation)

Although the first computer games appeared in the 1950s,[1] they were based around vector displays, not analog video. It was not until 1972 that Magnavox released the first home video game console which could be connected to a TV set—the Magnavox Odyssey, invented by Ralph H. Baer. The Odyssey was initially only moderately successful, and it was not until Atari's arcade game Pong popularized video games, that the public began to take more notice of the emerging industry. By the autumn of 1975 Magnavox, bowing to the popularity of Pong, cancelled the Odyssey and released a scaled down console that only played Pong and hockey, the Odyssey 100. A second "higher end" console, the Odyssey 200, was released with the 100 and added onscreen scoring, up to four players, and a third game—Smash. Almost simultaneously released with Atari's own home Pong console through Sears, these consoles jump-started the consumer market. As with the arcade market, the home market was soon flooded by dedicated consoles that played simple pong and pong-derived games.
[edit] Second generation
Main article: History of video game consoles (second generation)
Atari 2600

Fairchild released the Fairchild Video Entertainment System (VES) in 1976. While there had been previous game consoles that used cartridges, either the cartridges had no information and served the same function as flipping switches (the Odyssey) or the console itself was empty and the cartridge contained all of the game components. The VES, however, contained a programmable microprocessor so its cartridges only needed a single ROM chip to store microprocessor instructions.

RCA and Atari soon released their own cartridge-based consoles.
[edit] Video game crash of 1977

In 1977, manufacturers of older, obsolete consoles sold their systems at a loss to clear stock, creating a glut in the market and causing Fairchild and RCA to abandon their game consoles. Only Atari and Magnavox stayed in the home console market.
[edit] Rebirth of the home console market

The VES continued to be sold at a profit after the 1977 crash, and both Bally (with their Home Library Computer in 1977) and Magnavox (with the Odyssey² in 1978) brought their own programmable cartridge-based consoles to the market. However, it was not until Atari released a conversion of the arcade hit Space Invaders in 1980 that the home console industry was completely revived. Many consumers bought an Atari just for Space Invaders. Space Invaders' unprecedented success started the trend of console manufacturers trying to get exclusive rights to arcade titles, and the trend of advertisements for game consoles claiming to bring the arcade experience home.

Throughout the early 1980s, other companies released video game consoles of their own. Many of the video game systems were technically superior to the Atari 2600, and marketed as improvements over the Atari 2600. However, Atari dominated the console market in the early 1980s.
[edit] Video game crash of 1983
Main article: Video game crash of 1983

In 1983, the video game business suffered a much more severe crash. A flood of consoles, low quality video games by smaller companies (especially for the 2600), industry leader Atari hyping games such as E.T. that were poorly received, and a growing number of home computer users caused consumers and retailers to lose faith and interest in video game consoles. Most video game companies filed for bankruptcy, or moved into other industries, abandoning their game consoles. Mattel Electronics sold the rights for its Intellivision system to the INTV Corporation, who continued to produce Intellivision consoles and develop new games for the Intellivision until 1991. All other North American game consoles were discontinued by 1984.
[edit] Third generation
Main article: History of video game consoles (third generation)
The Robotic Operating Buddy that came packaged with the NES.

In 1983, Nintendo released the Family Computer (or Famicom) in Japan. Like the ColecoVision, the Famicom supported high-resolution sprites and tiled backgrounds, but with more colors. This allowed Famicom games to be longer and have more detailed graphics. Nintendo brought their Famicom over to the US in the form of the Nintendo Entertainment System (NES) in 1985. In the US, video games were seen as a fad that had already passed. To distinguish its product from older video game consoles, Nintendo used a front-loading cartridge port similar to a VCR on the NES, packaged the NES with a Super Mario Brothers game and a light gun (the Zapper), and originally advertised it as a toy. The plastic "robot" (R.O.B.) was also sold as an individual purchase item and in some cases packaged with the NES system.

Like Space Invaders for the 2600, Nintendo found its breakout hit game in Super Mario Bros. Nintendo's success revived the video game industry and new consoles were soon introduced in the following years to compete with the NES.

Sega's Master System was intended to compete with the NES, but never gained any significant market share in the US and was barely profitable. It fared notably better in PAL territories, especially Brazil.
[edit] Fourth generation
Main article: History of video game consoles (fourth generation)

Sega regained market share by releasing its next-generation console, the Mega Drive/Genesis, which was released in Japan on October 29, 1988, in the U.S. in August 1989 (renamed as the Sega Genesis) and in Europe in 1990, two years before Nintendo could release the Super Nintendo Entertainment System (SNES). The Mega Drive then became truly successful with the 1991 Sonic the Hedgehog.

Sega extended the Mega Drive with the Mega CD/Sega CD, to provide increased storage space for multimedia-based games that were then in vogue among the development community. Later, Sega released the 32X, which added some of the polygon-processing functionality common in fifth-generation machines. However, the peripheral was a commercial failure due to lack of software support, with developers more keen to concentrate on more powerful machines, with a wider user base, such as the Sega Saturn that followed shortly after.

Other consoles included in the fourth generation are NEC's TurboGrafx-16 and SNK Playmore's Neo Geo.
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