Second generation of video game consoles

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In the history of video games, the second-generation era refers to computer and video games, video game consoles, and handheld video game consoles available from 1976 to 1992. Notable platforms of the second generation include the Fairchild Channel F, Atari 2600, Intellivision, Odyssey 2, and ColecoVision. The generation began in November 1976 with the release of the Fairchild Channel F.^[1] This was followed by the Atari 2600 in 1977,^[2] Magnavox Odyssey² in 1978,^[3] Intellivision in 1980^[4] and then the Emerson Arcadia 2001, ColecoVision, Atari 5200, and Vectrex,^[5] all in 1982. By the end of the era, there were over 15 different consoles. It coincided with, and was partly fuelled by, the golden age of arcade video games. This peak era of popularity and innovation for the medium resulted in many games for second generation home consoles being ports of arcade games. Space Invaders, the first "killer app" arcade game to be ported, was released in 1980 for the Atari 2600, though earlier Atari-published arcade games were ported to the 2600 previously.^[6] Coleco packaged Nintendo's Donkey Kong with the ColecoVision when it was released in August 1982.

Built-in games, like those from the first generation, saw limited use during this era. Though the first generation Magnavox Odyssey had put games on cartridge-like circuit cards, the games had limited functionality and required TV screen overlays and other accessories to be fully functional. More advanced cartridges, which contained the entire game experience, were developed for the Fairchild Channel F, and most video game systems adopted similar technology.^[7] The first system of the generation and some others, such as the RCA Studio II, still came with built-in games^[8] while also having the capability of utilizing cartridges.^[9] The popularity of game cartridges grew after the release of the Atari 2600. From the late 1970s to the mid-1990s, most home video game systems used cartridges until the technology was replaced by optical discs. The Fairchild Channel F was also the first console to use a microprocessor, which was the driving technology that allowed the consoles to use cartridges.^[10] Other technology such as screen resolution, color graphics, audio, and AI simulation was also improved during this era. The generation also saw the first handheld game cartridge system, the Microvision, which was released by toy company Milton Bradley in 1979.

In 1979, Activision was created by former Atari programmers^[11] and was the first third-party developer of video games.^[12] A small company through the 1980s, it gradually grew into a 21st century gaming giant. In the early 1980s, many large corporations, spurred by the success of the home video game industry and especially the VCS, launched or bought subsidiaries to produce video game console software. By 1982, the shelf capacity of toy stores was overflowing with an overabundance of consoles, over-hyped game releases, and low-quality games from new third-party developers. An over-saturation of consoles and games,^[13] coupled with poor knowledge of the market, saw the video game industry crash in 1983 and marked the start of the next generation. Beginning in December 1982 and stretching through all of 1984, the crash of 1983 caused major disruption to the North American market.^[14][15] Some developers collapsed and almost no new games were released in 1984. The market did not fully recover until the third generation.^[4] The second generation ended on January 1, 1992, with the discontinuation of the Atari 2600.^[16]