Fifth generation consoles (1993–2006) (32 and 64-bit)

Main article: History of video game consoles (fifth generation)

Metal Gear Solid, notable for its innovative use of in-game generated cinemas, detailed integration of haptic technology, and theatrical story delivery.

In 1993, Atari re-entered the home console market with the introduction of the Atari Jaguar. Also in 1993, The 3DO Company released the 3DO Interactive Multiplayer, which, though highly advertised and promoted, failed to catch up to the sales of the Jaguar, due its high pricetag. Both consoles had very low sales and few quality games, eventually leading to their demise. In 1994, three new consoles were released in Japan: the Sega Saturn, the PlayStation, and the PC-FX, the Saturn and the PlayStation later seeing release in North America in 1995. The PlayStation quickly outsold all of its competitors, with the exception of the aging Super Nintendo Entertainment System, which still had the support of many major game companies.
The Virtual Boy from Nintendo was released in 1995 but did not achieve high sales. In 1996 the Virtual Boy was taken off the market.
After many delays, Nintendo released its 64-bit console, the Nintendo 64 in 1996. The console's flagship title, Super Mario 64, became a defining title for 3D platformer games.
PaRappa the Rapper popularized rhythm, or music video games in Japan with its 1996 debut on the PlayStation. Subsequent music and dance games like beatmania and Dance Dance Revolution became ubiquitous attractions in Japanese arcades. While Parappa, DDR, and other games found a cult following when brought to North America, music games would not gain a wide audience in the market until the next decade. Also in 1996 Capcom released Resident Evil, the first well known survival horror game. It was a huge success selling over 2 million copies and is considered one of the best games on the Playstation.
Other milestone games of the era include Rare's Nintendo 64 title GoldenEye 007 (1997), which was critically acclaimed for bringing innovation as being the first major first-person shooter that was exclusive to a console, and for pioneering certain features that became staples of the genre, such as scopes, headshots, and objective-based missions.^{[citation needed]} The Legend of Zelda: Ocarina of Time (1998) for the Nintendo 64 is widely considered the highest critically acclaimed game of all time.^[85] The title also featured many innovations such as Z-targeting which is commonly used in many games today.
Nintendo's choice to use cartridges instead of CD-ROMs for the Nintendo 64, unique among the consoles of this period, proved to have negative consequences. While cartridges were faster and combated piracy, CDs could hold far more data and were much cheaper to produce, causing many game companies to turn to Nintendo's CD-based competitors. In particular, Square, which had released all previous games in its Final Fantasy series for Nintendo consoles, now turned to the PlayStation; Final Fantasy VII (1997) was a huge success, establishing the popularity of role-playing games in the west and making the PlayStation the primary console for the genre.
By the end of this period, Sony had become the leader in the video game market. The Saturn was moderately successful in Japan but a commercial failure in North America and Europe, leaving Sega outside of the main competition. The N64 achieved huge success in North America and Europe, though it never surpassed PlayStation's sales or was as popular in Japan.
This generation ended with the PlayStation discontinuation in March 2006.