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Developed by Ralph Baer, the TV Game Unit #7--better known as "The Brown Box" for its appearance--was the first multiplayer, multiprogram video game system. The console came with two controllers, and players could choose one of six games by flipping a series of switches. [source]http://www.hongkiat.com/blog/evolution-of-home-video-game-consoles-1967-2011/)
[source]http://americanhistory.si.edu/collections/search/object/nmah_1301997) -
Nolan Brushnell founded Atari to create games and license them to other companies for mass production. source
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Sanders Associates, Inc., the company that employed Ralph Baer, licensed The Brown Box to Magnavox, and the system was released under the name "Magnavox Odyssey." It now sported a different appearance and, just like the first movies, was entirely silent.
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Inspired by the success of its own arcade games, Atari released a home version of the Pong game.
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The Coleco Telstar was another pong-style game, but this one was purposefully simplified to be more affordable to families on a budget. It only offered 3 games while it had a potential of 6. This system did, however, offer the choice of a difficulty level for the first time. source
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The Color TV Game Series by Nintendo was only available in Japan, but it marked the pivotal moment that Nintendo--still a major name in gaming today--joined the game market.
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The video game industry began experimenting with non-Pong related games such as fighting, platform, adventure, and RPG games. Classics including Pac-Man, Mario Bros, the Legend of Zelda, Final Fantasy, and Golden Axe were released during this era. Sega and Nintendo dominated the industry.
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The Nintendo Entertainment System, better known as the NES, was the best selling console of its generation. It was this system that gave Nintendo a name in gaming.
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While Sega's first console, the SG-1000, was never launched in North America, it still marks the entrance of Sega onto the playing field. It also marked the beginning of the power struggle between Sega and Nintendo.
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The Sega Genesis was the company's top selling console of all time.
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The next in line for Nintendo's consoles was the SNES, or Super Nintendo Entertainment System.
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The CD-i developed by Philips was seen as a failure because it was confusing and its games were below par, but it marked an important shift--it was the first console to store games on CDs instead of cartridges. This meant video games had an increased capacity and could now be in 3D instead of 2D.
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The Atari Jaguar was the last console ever released by Atari.
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Sony entered the scene with its Playstation, which met great success. It was also during this time that Sega released its Saturn system and Nintendo released the Nintendo 64.
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The Sega Dreamcast was the first system to feature a built-in modem for online play.
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Microsoft finally entered the competition with its well-received Xbox, which featured online gaming through Xbox Live. It was released around the same time as Nintendo's GameCube.
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Now that the market has stabilized, there are only three main companies competing in the console market--Sony, Microsoft, and Nintendo. Systems today have motion sensing, online play, and connection to the internet for downloadable content, along with full 1080hp graphics.