Sixth generation consoles (1998-Present)

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

In the sixth generation of video game consoles, Sega exited the hardware market, Nintendo fell behind, Sony solidified its lead in the industry, and Microsoft developed a gaming console.
The generation opened with the launch of the Dreamcast in 1998. It was the first console to have a built-in modem for Internet support and online play. While it was initially successful, sales and popularity would soon begin to decline with contributing factors being Sega's damaged reputation from previous commercial failures, software pirating, and the overwhelming anticipation for the upcoming Playstation 2. Production for the console would discontinue in most markets by 2002 and would be Sega's final console before becoming a third party game provider only.
The second release of the generation was Sony's Playstation 2. Nintendo followed a year later with the Nintendo GameCube, their first disc-based console. The Nintendo GameCube suffered from a lack of third-party games compared to Sony's system, and was hindered by a reputation for being a "kid's console" and lacking the mature games the current market appeared to want.

The Xbox, Microsoft's entry into the video game console industry.

Before the end of 2001, Microsoft Corporation, best known for its Windows operating system and its professional productivity software, entered the console market with the Xbox. Based on Intel's Pentium III CPU, the console used much PC technology to leverage its internal development. In order to maintain its hold in
 the market, Microsoft reportedly sold the Xbox at a significant loss^[86] and concentrated on drawing profit from game development and publishing. Shortly after its release in November 2001 Bungie Studio's Halo: Combat Evolved instantly became the driving point of the Xbox's success, and the Halo series would later go on to become one of the most successful console shooters of all time. By the end of the generation, the Xbox had drawn even with the Nintendo GameCube in sales globally, but since nearly all of its sales were in North America, it pushed Nintendo into third place in the American market.
In 2001 Grand Theft Auto III was released, popularizing open world games by using a non-linear style of gameplay. It was very successful both critically and commercially and is considered a huge milestone in gaming.
Nintendo still dominated the handheld gaming market in this generation. The Game Boy Advance in 2001, maintained Nintendo's market position. Finnish cellphone maker Nokia entered the handheld scene with the N-Gage, but it failed to win a significant following.
Console gaming largely continued the trend established by the PlayStation toward increasingly complex, sophisticated, and adult-oriented gameplay. Most of the successful sixth-generation console games were games rated T and M by the ESRB, including many now-classic gaming franchises such as Halo and Resident Evil, the latter of which was notable for both its success and its notoriety. Even Nintendo, widely known for its aversion to adult content (with very few exceptions most notably Conker's Bad Fur Day for the Nintendo 64), began publishing more M-rated games, with Silicon Knights's Eternal Darkness: Sanity's Requiem and Capcom's Resident Evil 4 being prime examples. This trend in hardcore console gaming would partially be reversed with the seventh generation release of the Wii. As of 2011, the PlayStation 2 is still in production and continues to sell steadily over a decade after its original release.^[87]

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.

Fourth generation consoles (1989–1999) (16-bit)

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

The Mega Drive\Sega Mega Drive\Genesis proved its worth early on after its debut in 1989. Nintendo responded with its own next generation system known as the Super NES in 1991. The TurboGrafx-16 debuted early on alongside the Genesis, but did not achieve a large following in the U.S. due to a limited library of games and excessive distribution restrictions imposed by Hudson.

Mortal Kombat, released in both SNES and Genesis consoles, was one of the most popular game franchises of its time.

The intense competition of this time was also a period of not entirely truthful marketing. The TurboGrafx-16 was billed as the first 16-bit system but its central processor was an 8-bit HuC6280, with only its HuC6270 graphics processor being a true 16-bit chip. Additionally, the much earlier Mattel Intellivision contained a 16-bit processor. Sega, too, was known to stretch the truth in its marketing approach; they used the term "Blast Processing" to describe the simple fact that their console's CPU ran at a higher clock speed than that of the SNES (7.67 MHz vs 3.58 MHz).
In Japan, the 1987 success of the PC Engine (as the TurboGrafx-16 was known there) against the Famicom and CD drive peripheral allowed it to fend off the Mega Drive (Genesis) in 1988, which never really caught on to the same degree as outside Japan. The PC Engine eventually lost out to the Super Famicom, but, due to its popular CD add-ons, retained enough of a user base to support new games well into the late 1990s.
CD-ROM drives were first seen in this generation, as add-ons for the PC Engine in 1988 and the Mega Drive in 1991. Basic 3D graphics entered the mainstream with flat-shaded polygons enabled by additional processors in game cartridges like Virtua Racing and Star Fox.
SNK's Neo-Geo was the most expensive console by a wide margin when it was released in 1990, and would remain so for years. It was also capable of 2D graphics in a quality level years ahead of other consoles. The reason for this was that it contained the same hardware that was found in SNK's arcade games. This was the first time since the home Pong machines that a true-to-the-arcade experience could be had at home.
This generation ended with the SNES's discontinuation in 1999.

VIDEO GAME 1990

Main article: 1990s in video gaming

The 1990s were a decade of marked innovation in video gaming. It was a decade of transition from raster graphics to 3D graphics and gave rise to several genres of video games including first-person shooter, real-time strategy, and MMO. Handheld gaming began to become more popular throughout the decade, thanks in part to the release of the Game Boy. Arcade games, although still relatively popular in the early 1990s, begin a decline as home consoles become more common.
The video game industry matured into a mainstream form of entertainment in the 1990s. Major developments of the 1990s included the beginning of a larger consolidation of publishers, higher budget games, increased size of production teams and collaborations with both the music and motion picture industries. Examples of this would be Mark Hamill's involvement with Wing Commander III or Quincy Jones' introduction of QSound.
The increasing computing power and decreasing cost of processors as the Intel 80386, Intel 80486, and the Motorola 68030, caused the rise of 3D graphics, as well as "multimedia" capabilities through sound cards and CD-ROMs. Early 3D games began with flat-shaded graphics (Elite, Starglider 2 or Alpha Waves^[84]), and then simple forms of texture mapping (Wolfenstein 3D).
1989 and the early 1990s saw the release and spread of the MUD codebases DikuMUD and LPMud, leading to a tremendous increase in the proliferation and popularity of MUDs. Before the end of the decade, the evolution of the genre continued through "graphical MUDs" into the first MMORPGs (Massively multiplayer online role-playing games), such as Ultima Online and EverQuest, which freed users from the limited number of simultaneous players in other games and brought persistent worlds to the mass market. A prime example of an MMORPG MUD is the game Runescape created by Jagex.
In the early 1990s, shareware distribution was a popular method of publishing games for smaller developers, including then-fledgling companies such as Apogee (now 3D Realms), Epic Megagames (now Epic Games), and id Software. It gave consumers the chance to try a trial portion of the game, usually restricted to the game’s complete first section or "episode", before purchasing the rest of the adventure. Racks of games on single 5 1/4" and later 3.5" floppy disks were common in many stores, often only costing a few dollars each. Since the shareware versions were essentially free, the cost only needed to cover the disk and minimal packaging. As the increasing size of games in the mid-90s made them impractical to fit on floppies, and retail publishers and developers began to earnestly mimic the practice, shareware games were replaced by shorter game demos (often only one or two levels), distributed free on CDs with gaming magazines and over the Internet.
In 1991, Sonic the Hedgehog was introduced. The game gave Sega's Mega Drive console mainstream popularity, and rivaled Nintendo's Mario franchise. Its namesake character became the mascot of Sega and one of the most recognizable video game characters.
In 1992 the game Dune II was released. It was by no means the first in the genre (several other games can be called the very first real-time strategy game, see the History of RTS), but it set the standard game mechanics for later blockbuster RTS games such as Warcraft: Orcs & Humans, Command & Conquer, and StarCraft. The RTS is characterized by an overhead view, a "mini-map", and the control of both the economic and military aspects of an army. The rivalry between the two styles of RTS play—Warcraft style, which used GUIs accessed once a building was selected, and C&C style, which allowed construction of any unit from within a permanently visible menu—continued into the start of the next millennium.
Alone in the Dark (1992), while not the first survival horror game, planted the seeds of what would become known as the survival horror genre today. It took the action-adventure style and retooled it to de-emphasize combat and focus on investigation. An early attempt to simulate 3D scenarios by mixing polygons with 2D background images, it established the formula that would later flourish on CD-ROM based consoles, with games such as Resident Evil which coined the name "survival horror" and popularized the genre, and Silent Hill.
Adventure games continued to evolve, with Sierra Entertainment’s King's Quest series, and LucasFilms'/LucasArts' Monkey Island series bringing graphical interaction and the creation of the concept of "point-and-click" gaming. Myst and its sequels inspired a new style of puzzle-based adventure games. Published in 1993, Myst itself was one of the first computer games to make full use of the new high-capacity CD-ROM storage format. Despite Myst’s mainstream success, the increased popularity of action-based and real-time games led adventure games and simulation video games, both mainstays of computer games in earlier decades, to begin to fade into obscurity.
It was in the 1990s that Maxis began publishing its successful line of "Sim" games, beginning with SimCity, and continuing with a variety of titles, such as SimEarth, SimCity 2000, SimAnt, SimTower, and the best-selling PC game in history, The Sims, in early 2000.
In 1996, 3dfx Interactive released the Voodoo chipset, leading to the first affordable 3D accelerator cards for personal computers. These devoted 3D rendering daughter cards performed a portion of the computations required for more-detailed three-dimensional graphics (mainly texture filtering), allowing for more-detailed graphics than would be possible if the CPU were required to handle both game logic and all the graphical tasks. First-person shooter games (notably Quake) were among the first to take advantage of this new technology. While other games would also make use of it, the FPS would become the chief driving force behind the development of new 3D hardware, as well as the yardstick by which its performance would be measured, usually quantified as the number of frames per second rendered for a particular scene in a particular game.
Several other, less-mainstream, genres were created in this decade. Looking Glass Studios' Thief: The Dark Project and its sequel were the first to coin the term "first person sneaker", although it is questionable whether they are the first "first person stealth" games. Turn-based strategy progressed further, with the Heroes of Might and Magic (HOMM) series (from The 3DO Company) luring many mainstream gamers into this complex genre.
Id Software’s 1996 game Quake pioneered play over the Internet in first-person shooters. Internet multiplayer capability became a de facto requirement in almost all FPS games. Other genres also began to offer online play, including RTS games like Microsoft Game Studios’ Age of Empires, Blizzard’s Warcraft and StarCraft series, and turn-based games such as Heroes of Might and Magic. Developments in web browser plug-ins like Java and Adobe Flash allowed for simple browser-based games. These are small single player or multiplayer games that can be quickly downloaded and played from within a web browser without installation. Their most popular use is for puzzle games, side-scrollers, classic arcade games, and multiplayer card and board games.
Few new genres have been created since the advent of the FPS and RTS, with the possible exception of the third-person shooter. Games such as Grand Theft Auto III, Tom Clancy's Splinter Cell, Enter the Matrix, and Hitman all use a third-person camera perspective, but are otherwise very similar to their first-person counterparts.

[edit] Decline of arcades

With the advent of 16-bit and 32-bit consoles, home video games began to approach the level of graphics seen in arcade games. An increasing number of players would wait for popular arcade games to be ported to consoles rather than going out. Arcades experienced a resurgence in the early to mid 1990s with games such as Street Fighter II and Mortal Kombat and other games in the one-on-one fighting game genre, and NBA Jam. As patronage of arcades declined, many were forced to close down. Classic coin-operated games have largely become the province of dedicated hobbyists and as a tertiary attraction for some businesses, such as movie theaters, batting cages, miniature golf, and arcades attached to game stores such as F.Y.E..
The gap left by the old corner arcades was partly filled by large amusement centers dedicated to providing clean, safe environments and expensive game control systems not available to home users. These are usually based on sports like skiing or cycling, as well as rhythm games like Dance Dance Revolution, which have carved out a large slice of the market. Dave & Buster's and GameWorks are two large chains in the United States with this type of environment. Aimed at adults and older kids, they feature full service restaurants with full liquor bars and have a wide variety of video game and hands on electronic gaming options. Chuck E. Cheese's is a similar type of establishment focused towards small children.

Third generation consoles (1983–1995)

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

The Nintendo Entertainment System or NES.

In 1985, the North American video game console market was revived with Nintendo’s release of its 8-bit console, the Famicom, known outside Asia as Nintendo Entertainment System (NES). It was bundled with Super Mario Bros. and instantly became a success. The NES dominated the North American and the Japanese market until the rise of the next generation of consoles in the early 1990s. Other markets were not as heavily dominated, allowing other consoles to find an audience like the Sega Master System in Europe, Australia and Brazil (though it was sold in North America as well).
In the new consoles, the gamepad or joypad, took over joysticks, paddles, and keypads as the default game controller included with the system. The gamepad design of an 8 direction Directional-pad (or D-pad for short) with 2 or more action buttons became the standard.
The Legend of Zelda series made its debut in 1986 with The Legend of Zelda. In the same year, the Dragon Quest series debuted with Dragon Quest, and has created a phenomenon in Japanese culture ever since. The next year, the Japanese company Square was struggling and Hironobu Sakaguchi decided to make his final game—a role-playing game (RPG) modeled after Dragon Quest and titled Final Fantasy—resulting in Final Fantasy series, which would later go on to become the most successful RPG franchise. 1987 also saw the birth of the stealth game genre with Hideo Kojima’s Metal Gear series' first game Metal Gear on the MSX2 computer—and ported to the NES shortly after. In 1989, Capcom released Sweet Home on the NES, which served as a precursor to the survival horror genre.
In 1988, Nintendo published their first issue of Nintendo Power magazine.^[83]
This generation ended with the discontinuation of the NES in 1995.

Second generation consoles (1977–1983)

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

In the earliest consoles, the computer code for one or more games was hardcoded into microchips using discrete logic, and no additional games could ever be added. By the mid-1970s video games were found on cartridges, starting in 1976 with the release of the Fairchild 'Video Entertainment System (VES). Programs were burned onto ROM chips that were mounted inside plastic cartridge casings that could be plugged into slots on the console. When the cartridges were plugged in, the general-purpose microprocessors in the consoles read the cartridge memory and executed whatever program was stored there. Rather than being confined to a small selection of games included in the game system, consumers could now amass libraries of game cartridges. However video game production was still a niche skill. Warren Robinett, the famous programmer of the game Adventure, spoke on developing games "in those old far-off days, each game for the 2600 was done entirely by one person, the programmer, who conceived the game concept, wrote the program, did the graphics—drawn first on graph paper and converted by hand to hexadecimal—and did the sounds."^[21]
Three machines dominated the second generation of consoles in North America, far outselling their rivals:

• The Video Computer System (VCS) ROM cartridge-based console, later renamed the Atari 2600, was released in 1977 by Atari. Nine games were designed and released for the holiday season. While the console had a slow start, its port of the arcade game Space Invaders would become the first "killer app" and quadruple the console's sales.^[19] Soon after, the Atari 2600 would quickly become the most popular of all the early consoles prior to the North American video game crash of 1983.
• The Intellivision, introduced by Mattel in 1980. Though chronologically part of what is called the "8-bit era", the Intellivision had a unique processor with instructions that were 10 bits wide (allowing more instruction variety and potential speed), and registers 16 bits wide. The system, which featured graphics superior to the older Atari 2600, rocketed to popularity.
• The ColecoVision, an even more powerful machine, appeared in 1982. Its sales also took off, but the presence of three major consoles in the marketplace and a glut of poor quality games began to overcrowd retail shelves and erode consumers' interest in video games. Within a year this overcrowded market would crash.

In 1979, Activision was created by disgruntled former Atari programmers "who realized that the games they had anonymously programmed on their $20K salaries were responsible for 60 percent of the company's $100 million in cartridge sales for one year".^[22] It was the first third-party developer of video games. By 1982, approximately 8 million American homes owned a video game console, and the home video game industry was generating an annual revenue of $3.8 billion, which was nearly half the $8 billion revenue in quarters generated from the arcade video game industry at the time.^[23]

Video game crash of 1977

In 1977, manufacturers of older, obsolete consoles and Pong clones sold their systems at a loss to clear stock, creating a glut in the market,^[17] and causing Fairchild and RCA to abandon their game consoles. Only Atari and Magnavox remained in the home console market, despite suffering losses in 1977 and 1978.^[18]
The crash was largely caused by the significant number of Pong clones that flooded both the arcade and home markets. The crash eventually came to an end with the success of Taito's Space Invaders, released in 1978, sparking a renaissance for the video game industry and paving the way for the golden age of video arcade games.^[17] Soon after, Space Invaders was licensed for the Atari VCS (later known as Atari 2600), becoming the first "killer app" and quadrupling the console's sales.^[19] This helped Atari recover from their earlier losses.^[18] The success of the Atari 2600 in turn revived the home video game market, up until the North American video game crash of 1983.^[20]