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Kids had something to do on Snow days or if they were Turn-key kids inside til their parents got home from work.
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I never had one but it became a social networking function. Getting together to play was like an after school get together.
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The consoles could have multiple players up to 4, with 4 hand controls connected by a wire. Still socially present with people in the same house, but limited as to how many people.
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Dial up internet made communication over the internet possible but also patchy, Couldn't use phone and internet at the same time.
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PC games were possible for a single person to play alone. Solitaire, Chess, Doom.
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With Play Station, Games were single player but the world in which you played could have many different players from anywhere. The world got smaller.
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Upgrade in Graphics and User interface. Go Playstation!!
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Huge amount of Storage and an infinite amount of online friends possible. Difficult because the info that is online about a person isn't always and is rarely the reality. User Beware!!
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By now most parents have schooled their children on online safety or are policing their activity regularly... or they should be. Anything is possible and the realistic nature of the graphics is like watching a movie.