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Console war
In the video game industry, a console war describes the competition between two or more video game console manufacturers in trying to achieve better consumer sales through more advanced console technology, an improved selection of video games, and general marketing around their consoles. While console manufacturers are generally always trying to out-perform other manufacturers in sales, these console wars engage in more direct tactics to compare their offerings directly against their competitors or to disparage the competition in contrast to their own, and thus the marketing efforts have tended to escalate in back-and-forth pushes.
While there have been many console wars to date, the term became popular between Sega and Nintendo during the late 1980s and early 1990s as Sega attempted to break into the United States video game market with its Sega Genesis console. Through a novel marketing approach and improved hardware, Sega had been able to gain a majority of the video game console market by 1991, three years after the Genesis' launch. This caused back and forth competition between the two companies throughout the early 1990s. However, Nintendo eventually regained its market share and Sega stopped making home console hardware by 2001.
The video game console market started in 1972 with the release of the first home console, the Magnavox Odyssey. As more manufacturers entered the market and technology improved, the market began to coalesce around releases of more advanced hardware every few years on a predictable cycle, which are typically grouped into generations. Since 1972, there have been nine console generations, with two to three dominant manufacturers controlling the marketplace.
As with most industries without a single dominant leader, console manufacturers have marketed their products in a manner to highlight them in a more favorable manner compared to their competitors', or to focus on features that their competitors may lack, often in aggressive manners. For example, console manufacturers in the 1980s and 1990s heavily relied on the word size of the central processor unit, emphasizing that games had better capabilities with 16-bit processors over 8-bit ones. This type of aggressive marketing led video game journalists to call the competitive marketing a "war" or "battle" as early as August 1988. As each new console generation emerged with new marketing approaches, journalists and consumers continued to use variations of the "war" language, including "system wars" and "console wars". By the early 2000s, the term "console war" was most commonly used to describe heated competition between console manufacturers within any generation.
While not the only console war, the rivalry between Sega and Nintendo for dominance of the North American video game market in the late 1980s and early 1990s is generally the most visible example of a console war. It established the use of aggressive marketing and advertising tactics by each company to try to gain control of the marketplace, and ended around 1995 when a new player, Sony, entered and disrupted the console space.
The United States video game industry suffered a severe market crash in 1983 from numerous factors which led to a larger market recession and increasing popularity of personal computers as a video game platform. A key contributing factor to the crash was the loss of publishing control for console games. Early success by some of the first third-party developers like Activision for the Atari VCS console led to venture capitalists bringing in teams of inexperienced programmers to try to capture the same success, but only managed to flood the market with poor quality games, which made it difficult for good quality games to sell. The video game crash impacted other factors in the industry that were already in decline, such as video game arcades.
In Japan, Nintendo had released its Famicom (Family Computer) console in 1983, one of the first consoles of the third generation. Japan did not have a similar third-party development system in place, and Nintendo maintained control on the manufacturing of game cartridges for the Famicom using a licensing model to limit which third-party games were published on it. Nintendo looked to release the unit in the United States, but recognized that the market was still struggling from the 1983 crash. Nintendo took several steps to redesign the Famicom prior to a United States launch. It was made to look like a VCR unit rather than a console, and was given the name the "Nintendo Entertainment System" to distance it from being a video game console. Further, Nintendo added a special 10NES lockout system that worked as a lock-and-key system with game cartridges to further prevent unauthorized games from being published for the system and avoid the loss of publishing control that had caused the 1983 crash. The NES revitalized the U.S. video game industry and established Nintendo as the dominant name in video game consoles over Atari. In lifetime sales, the NES had sold nearly 62 million units worldwide, with 34 million in North America.
At the same time, Sega was looking to get into the video game console industry as well, having been a successful arcade game manufacturer, but due to the downturn in arcade game business, looked to use that expertise for the home market. They released the SG-1000 console in Japan the same day as the Famicom in 1983, but sold only 160,000 units of the SG-1000 in its first year.
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Console war AI simulator
(@Console war_simulator)
Console war
In the video game industry, a console war describes the competition between two or more video game console manufacturers in trying to achieve better consumer sales through more advanced console technology, an improved selection of video games, and general marketing around their consoles. While console manufacturers are generally always trying to out-perform other manufacturers in sales, these console wars engage in more direct tactics to compare their offerings directly against their competitors or to disparage the competition in contrast to their own, and thus the marketing efforts have tended to escalate in back-and-forth pushes.
While there have been many console wars to date, the term became popular between Sega and Nintendo during the late 1980s and early 1990s as Sega attempted to break into the United States video game market with its Sega Genesis console. Through a novel marketing approach and improved hardware, Sega had been able to gain a majority of the video game console market by 1991, three years after the Genesis' launch. This caused back and forth competition between the two companies throughout the early 1990s. However, Nintendo eventually regained its market share and Sega stopped making home console hardware by 2001.
The video game console market started in 1972 with the release of the first home console, the Magnavox Odyssey. As more manufacturers entered the market and technology improved, the market began to coalesce around releases of more advanced hardware every few years on a predictable cycle, which are typically grouped into generations. Since 1972, there have been nine console generations, with two to three dominant manufacturers controlling the marketplace.
As with most industries without a single dominant leader, console manufacturers have marketed their products in a manner to highlight them in a more favorable manner compared to their competitors', or to focus on features that their competitors may lack, often in aggressive manners. For example, console manufacturers in the 1980s and 1990s heavily relied on the word size of the central processor unit, emphasizing that games had better capabilities with 16-bit processors over 8-bit ones. This type of aggressive marketing led video game journalists to call the competitive marketing a "war" or "battle" as early as August 1988. As each new console generation emerged with new marketing approaches, journalists and consumers continued to use variations of the "war" language, including "system wars" and "console wars". By the early 2000s, the term "console war" was most commonly used to describe heated competition between console manufacturers within any generation.
While not the only console war, the rivalry between Sega and Nintendo for dominance of the North American video game market in the late 1980s and early 1990s is generally the most visible example of a console war. It established the use of aggressive marketing and advertising tactics by each company to try to gain control of the marketplace, and ended around 1995 when a new player, Sony, entered and disrupted the console space.
The United States video game industry suffered a severe market crash in 1983 from numerous factors which led to a larger market recession and increasing popularity of personal computers as a video game platform. A key contributing factor to the crash was the loss of publishing control for console games. Early success by some of the first third-party developers like Activision for the Atari VCS console led to venture capitalists bringing in teams of inexperienced programmers to try to capture the same success, but only managed to flood the market with poor quality games, which made it difficult for good quality games to sell. The video game crash impacted other factors in the industry that were already in decline, such as video game arcades.
In Japan, Nintendo had released its Famicom (Family Computer) console in 1983, one of the first consoles of the third generation. Japan did not have a similar third-party development system in place, and Nintendo maintained control on the manufacturing of game cartridges for the Famicom using a licensing model to limit which third-party games were published on it. Nintendo looked to release the unit in the United States, but recognized that the market was still struggling from the 1983 crash. Nintendo took several steps to redesign the Famicom prior to a United States launch. It was made to look like a VCR unit rather than a console, and was given the name the "Nintendo Entertainment System" to distance it from being a video game console. Further, Nintendo added a special 10NES lockout system that worked as a lock-and-key system with game cartridges to further prevent unauthorized games from being published for the system and avoid the loss of publishing control that had caused the 1983 crash. The NES revitalized the U.S. video game industry and established Nintendo as the dominant name in video game consoles over Atari. In lifetime sales, the NES had sold nearly 62 million units worldwide, with 34 million in North America.
At the same time, Sega was looking to get into the video game console industry as well, having been a successful arcade game manufacturer, but due to the downturn in arcade game business, looked to use that expertise for the home market. They released the SG-1000 console in Japan the same day as the Famicom in 1983, but sold only 160,000 units of the SG-1000 in its first year.