Gaming Console

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Although the first computer games appeared in the 1950s, 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 version that played only 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.

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. 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, 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.

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 console so they could play Space Invaders at home. 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.

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. and an 2600 Pac-man 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.

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...
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