Fourth Generation Terminology

Two innovations in the computer electronics industry had to occur before home video games could achieve similar popularity as in the Second Generation. Both transpired in 1984. The first was the reduction in cost of Dynamic RAM (DRAM) chips that allowed programmers more memory than conventional RAM and accessed at much higher transfer rates than magnetic disks. The second was the production of higher power 8-bit processors, which lowered the prices of the pervious chips. This made the two technologies easily accessible to video game companies.

These innovations were ideal for the production of home game consoles that could compete with the ability of arcade machines. Several companies from the previous generations (Atari, Mattel, and Magnavox) tentatively tested the gaming market. However, they simply released updated versions of their older systems. The successes of the Fourth Generation would come from unknown companies with fresh consoles.

Sega was the first of the Japanese companies to try a new system. Created in 1954 in Japan by an American David Rosen, Service Games originally produced coin-operated mechanical games. In 1965, Rosen purchased a Tokyo jukebox and slot-machine maker and adopted a shortened version of Service Games, Sega. During the Pong era, Sega was busy making very popular pinball games. Later, under the direction of Gulf & Western, Sega entered into the video game market with the arcade game "Periscope." They would be an integral player in the industry, eventually suffering during the gaming market crash in the Third Generation. When DRAM chips and inexpensive 8-bit processors became available in 1984, Sega, being headed by Hayao Nakayama at the time, entered the home console market with their Master System.2 The Sega Master system would sell very well, but its success would be short lived.

Nintendo of Japan, was originally founded in 1889 by Fusajiro Yamauchi, an artist and craftsworker during the Meiji period. Founded as a playing card company, Nintendo virtually meant "leave luck to heaven."1 Entering into the video game market in the seventies by joining with Coleco, an American video game company, Nintendo would achieve moderate success through such arcade games as Donkey Kong and Mario Brothers. They would also produce a majority of games for the Third Generation system Coleco Vision. But the gaming market crash at that time would destroy several companies, including Coleco, leaving Nintendo's future in video games uncertain. Teaming up with Mitsubishi to produce watches with simple LCD games built in, Nintendo would tread water for a few years, unable to truly achieve any kind of lasting prosperity.2 Upon learning of the success that other companies, such as Sega, were having in the U.S. Hirosi Yamauchi, a descendant of Fusajiro's, pressed Nintendo engineers to design their own home console. Yamauchi told his engineers to leave out all extraneous frills to save money and speed up production.3 The system was rushed by the pressures Yamauchi placed on his designers, and was released no more than six months since the release of the Sega Master System. The first shipments were riddled with defects because of the short design period, thus making many retailers very upset.8 However, using the marketing data already established by competing companies, Nintendo executives channeled nearly all of the company's resources into advertisements. These advertisements hit the American and Japanese consumers at the exact right time, because sales for the Nintendo Entertainment System would skyrocket over the next few months, and Nintendo would not be able to manufacture enough systems to keep the stores stocked.8

The Nintendo Entertainment System (NES) would become the highest selling system in history, and also the most notorious. Nintendo would be involved in the intimidation of retailers, competing companies, and even licensed "partners." They would have countless lawsuits brought up against them, and fill the gaming community with inaccurate rumors and "vapor-ware" for the sole purpose of detracting public attention away from competitors. Ultimately, Nintendo would be brought up on charges of monopolizing, price fixing, and anti-trust violations by District Attorneys from all fifty states, and lose. However, most will agree, that the real loser in all of these battles, was the customer.

The

Nintendo Entertainment System (NES)

-The Nintendo Entertainment System was released in America in 1985, after some limited success in Japan as the Famicom. Over the next few years, its user base would grow exponentially until the NES surpassed the Atari VCS/2600 peak set in 1982.6 As of 1990, there were over 19 million NES systems in the United States alone.5

In addition to the tremendous success of the system, its games had a great deal prosperity. For example, Super Mario Bros. 3 released in 1989 grossed over $500 million just in America. In the field of entertainment, only the movie E.T. has made more revenue.3 Super Mario Bros. 3 would sell more than 7 million copies in America and 4 million in Japan, which is more copies than any other game in history. Sheff wrote, "By record-industry standards, 'SMB3' went platinum eleven times. Michael Jackson is one of the few artists to have accomplished this feat."9

By 1990, the money earned from Nintendo's NES and its games allowed Nintendo to usurp Toyota as Japan's most successful company. In the entertainment business, Nintendo netted as much as all of the American movie studios combined, and more than the three television networks had in the previous two years. In the five short years since the system was released, the NES could be found in more than a third of the household in America and Japan. 9

This monopoly gave Nintendo significant control over the market during the Fourth Generation, which they utilized in various malicious schemes. Despite all of this, they are still one of the most popular and well-known companies in the world.

Nintendo's only competitor in the 8-bit market was Sega with their Sega Master System. While the Master System did have many more features than the NES (which is evident in a side-by-side comparison) it lacked the third party support that Nintendo had and was not much competition. The Master System sold a total of 2 million units and at times had a market share of 11%, these were the only reason the system survived as long as it did.10

Sega Master System

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While they had produced several very popular arcade and home video games over the years (Frogger, Buck Rogers, Congo Bongo) the Sega Master System was the first system that Sega had released in America. Unlike the other systems during this era, the Sega Master System (SMS) had two cartridge ports. One had the standard cartridge configuration, while the other accepted small credit card shaped cartridges. These card games were limited by their size and memory, however, they were typically much cheaper than the normal size carts, and sold reasonably well for the system. The system was capable of utilizing both ports at any given time, and Sega used this feature to produce 3-D glasses for use with certain games. These glasses used little LCD screens that would alternately flash opaque and clear. When choreographed with similar flashings on the screen, it turned some games into an early "virtual-reality" experience. Speaking from personal experience, the 3-D glasses worked quite well. My only problem with them was that my skull was a bit large for the small and brittle frames. Eventually, my 3-D glasses simply broke.

In a side-by-side comparison of the SMS and NES, it is obvious that the SMS had more potential than the NES. This opinion was shared by video game magazines as well14. However, with a mere fraction of the games that the NES had, the SMS would never be able to attain any significant popularity in America. In Europe, on the other hand, the SMS would sell so well that Nintendo of Europe would have to license some of their games to them to stay afloat.

The Sega Master System would be raised from the dead in 1990 in the form of a portable system known as the Game Gear.

Atari Lynx

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SYSTEM SPECS:(10) Processor: 65C02 (8-bit) / 16-bit graphics processor) Processor Speed: 4 MHz Resolution: 160 X 102 Colors: 16 / 4096 Max Sprite Estimation: 128 Sprite Size: Programmable Debut Price (1988) $159.99

Nintendo Game Boy

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SYSTEM SPECS:(10) Processor: 6502 (8-bit) Processor Speed: 2.14 MHz Resolution: 140 X 102 Colors: 4 luminences (monochromatic) Max Sprite Estimation: 8 Sprite Size: 8 x 8 Debut Price (1988) $169.99