As we approach the release of the PS4 and the Xbox One, we prepare to truly enter next era of console gaming. But the history of console gaming goes back decades, 40 years of history. Wars, alliances, betrayals, and the rise and fall of many companies. Exeposé Games sets out on a journey of great historical importance, charting each generation of…The Console Wars.
As the console market imploded in the US in 1983, across the Pacific, Nintendo were preparing to release their latest console, the Famicom. Having been successful with the dedicated consoles in the late 70s, and arcade games series in the early 80s, Nintendo decided to create its own console. The company Sega also decided to release a console, the SG-1000, at the same time, with both releasing on 15th July 1983.
For the first year, neither sold particularly well. The SG-1000 was too much like the older consoles to differentiate it. The Famicom, on the other hand, had a technical issue with the motherboard.
Nintendo issued a product recall, replaced the motherboard, and started shipping again. The popularity of the console then exploded, becoming Japan’s best selling console by the end of 1984.
Two years later, in September 1986, Nintendo released the Famicom to American and European markets; but they gave the Famicom a rebrand, it was now called the Nintendo Entertainment System or NES. Because of the gaming crash of 1983, Nintendo had trouble convincing retailers to stock the console, taking several measures to have them agree to it, such as the rebranding to make it sound less like a gaming console.
The US still believed console gaming had been a fad. The NES destroyed all belief of that. By 1988, it had sold 11 million NES units in the US and Japan alone.
Nintendo market success wasn’t by luck. It was by a series of reforms to hardware, software, and business practice that became the standard for the gaming market. All done first with the NES. Besides form, and the basic improvements to increase its capabilities compared the last generation, the NES also had a completely different controller setup. Instead of a joystick, it had two buttons on the right, a start and select button in the middle, and a d-pad on the left.
It short, it was the beginning of the modern controller. Another simple feature, were the character sprites now found in the games. Though taken for granted now, multi-coloured sprites were a massive leap forward for the industry in terms of graphics design.
Beyond improvement, it innovated the gaming industry. However, even if the market couldn’t trust the game quality, it wouldn’t matter.
That was where locking came in. Using specifically coded chips, Nintendo locked the NES for programmers, and locked it regionally. First-party games were unaffected, but third-party developers would have to pay Nintendo royalties for the licence, and if a game didn’t get Nintendo’s seal of approval, it didn’t release.
The result were games that earned Nintendo’s seal of quality, coming to improve gaming quality and helping restore buyer confidence, all of which Nintendo profited from. Atari had seen third-party developers as an enemy to their market; Nintendo used them as an untapped goldmine.
The NES did eventually get competition, in two very different forms. Sega returned in October 1985 with the Sega Master System, a console that outperformed the NES in terms of hardware, with a bigger memory, colour palette and stronger capabilities of producing early forms of 3D graphics.
Conversely, Atari’s attempt to get back the market, the Atari 7800, released had been delayed to release since 1984, releasing properly in January 1986, its near complete backwards compatibility its only major feature among its relatively out-dated hardware.
Instead of fighting Nintendo, though, it ended a fight for second place, and Atari always was on the back foot. Nintendo’s licencing policy meant the companies licenced could only work on NES games for two years, effectively cutting off Sega and Atari from most big games.
The Empire of Nintendo reigned supreme.
By the end of 1988, Nintendo dominated the industry. It controlled 78% of the gaming market. If the first console war had been exploration, and the second a scramble, the third console war was a conquest and revival of the failing gaming industry-by the Nintendo Empire.
It also marked the end of US dominance over the market, shifting instead to Japan, where it remained effectively unchallenged for over 20 years. Atari was out, but Sega was still prepared to fight Nintendo on even ground. The pitched battle of the fourth console war was about to begin.
Check in tomorrow for the full history of The Fourth Console War…
Luke Pilchowski
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