In the aftermath of the lawsuit, an oversaturated market resulted in companies that had never had an interest in video games before beginning to work on their own promotional games brands like Purina Dog Food. Atari sued Activision for copyright infringement and theft of trade secrets in 1980, but the two parties settled on fixed royalty rates and a legitimizing process for third parties to develop games on hardware. Activision was the first third-party developer for the Atari 2600. Third-party development and an oversaturated market įollowing a dispute over recognition and royalties, several of Atari's key programmers split and founded their own company Activision in late 1979. In 1982, " Pac-Man Fever" charted on the Billboard Hot 100 charts and Tron became a cult classic. The effect video games had on society expanded to other mediums as well such as major films and music. The arcade video game industry in the US alone was generating $5 billion of revenue annually in 1981 and the number of arcades doubled between 19. In the early-1980s, arcade games were a vibrant industry. Main article: Golden age of arcade video games A rivalry between Sega and Nintendo occurred during this generation, starting the first ever console war. Nintendo's Game Boy was also released during the fourth generation, which would later become the most popular series of handheld gaming systems during the 1990s. Some of the most notable systems released during this generation were the Super Famicom/ Super Nintendo Entertainment System (1990), the Sega Mega Drive/Genesis (1988), and the Neo Geo (1991). The fourth generation also was the first time compact discs were considered a viable port for video game retail sales with the CD-i. During this generation, 2D graphics had improved over the previous generation and experimentation began to occur with 3D graphics, although 3D games were more prevalent on the PC at the time. Starting in 1987 with the PC Engine in Japan and ending in 1996, with the last console being the Neo-Geo in 1991, the fourth generation of video game consoles consisted primarily of games and systems programmed for the 16-bit era. Main article: Fourth generation of video game consoles Notable games of the 1980s included Metroid, Elite, SimCity, Ninja Gaiden, Tetris, Pac-Man, Contra, Donkey Kong, and the first five Super Mario games.Ĭonsoles of the 1980s Third generation consoles (1983–1993) Other consoles releases in the decade included the Intellivision, TurboGrafx-16 (PC Engine) and Sega Genesis (Mega Drive). In the remaining years of the decade, Sega ignites a console war with Nintendo, developers that had been affected by the crash experimented with the more advanced graphics of the PC, and Nintendo released the Game Boy, which would become the best-selling handheld gaming device for the next two-decades. Up until this point, most investors believed video games to be a fad that has since passed. It took home consoles years to recover from the crash, but Nintendo filled in the void with its Nintendo Entertainment System (NES, Famicom), reviving interest in consoles. Another, the rising influence of the home computer, and a lack of quality in the games themselves led to an implosion of the video game market that nearly destroyed the industry in North America. The decade began amidst a boom in the arcade business with giants like Atari still dominating the American market since the late-1970s. It was a decade of highs and lows for video games. The 1980s was the second decade in the industry's history.
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