In mid-1990, Nakayama hired Tom Kalinske to replace Katz as CEO of Sega of America. Although Kalinske initially knew little about the video game market, he surrounded himself with industry-savvy advisors. A believer in the razor and blades business model, he developed a four-point plan: cut the price of the console, create a U.S.-based team to develop games targeted at the American market, continue and expand the aggressive advertising campaigns, and replace the bundled game Altered Beast with a new game, Sonic the Hedgehog. The Japanese board of directors initially disapproved of the plan, but all four points were approved by Nakayama, who told Kalinske, "I hired you to make the decisions for Europe and the Americas, so go ahead and do it." Magazines praised Sonic as one of the greatest games yet made, and Sega's console finally took off as customers who had been waiting for the release of the international version of Nintendo's Super Famicom—the Super Nintendo Entertainment System or SNES—decided to purchase a Genesis instead. Nintendo's console debuted against an established competitor, while NEC's TurboGrafx-16 failed to gain traction, and NEC soon pulled out of the market. In large part due to the popularity of Sonic the Hedgehog, the Sega Genesis outsold the SNES in the United States nearly two to one during the 1991 holiday season. This success led to Sega having control of 65% of the 16-bit console market in January 1992, making it the first time Nintendo was not the console leader since December 1985.
With the Xbox One and Sony PlayStation 4; console gaming has entered a new level of visual fidelity and online play. Games on the Xbox One console and the PS4 console are bigger, more immersive and more graphically stunning than ever before. Now, with the PS4 Pro and the Xbox One X, you can enjoy even better graphics and processing power. Nintendo’s current console, the Switch, may not pack the same graphical punch, but has been enormously successful thanks to a stellar line up of games and the fact it can be used as a home console and a handheld.
^ Tabuchi, Hiroko (March 23, 2010). "Nintendo to Make 3-D Version of Its DS Handheld Game". The New York Times. The New York Times Company. Retrieved April 4, 2010. 'We wanted to give the gaming industry a head’s up about what to expect from Nintendo at E3,' said Ken Toyoda, chief spokesman at Nintendo. 'We'll invite people to play with the new device then.'
The Odyssey initially sold about 100,000 units, making it moderately successful, and it was not until Atari's arcade game Pong popularized video games that the public began to take more notice of the emerging industry. By autumn 1975, Magnavox, bowing to the popularity of Pong, canceled the Odyssey and released a scaled-down version that played only Pong and hockey, the Odyssey 100. A second, "higher end" console, the Odyssey 200, was released with the 100 and added on-screen scoring, up to four players, and a third game—Smash. Almost simultaneously released with Atari's own home Pong console through Sears, these consoles jump-started the consumer market. All three of the new consoles used simpler designs than the original Odyssey did with no board game pieces or extra cartridges. In the years that followed, the market saw many companies rushing similar consoles to market. After General Instrument released their inexpensive microchips, each containing a complete console on a single chip, many small developers began releasing consoles that looked different externally, but internally were playing exactly the same games. Most of the consoles from this era were dedicated consoles playing only the games that came with the console. These video game consoles were often just called video games because there was little reason to distinguish the two yet. While a few companies like Atari, Magnavox, and newcomer Coleco pushed the envelope, the market became flooded with simple, similar video games.