Second generation of video game consoles
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. This was followed by the Atari 2600 in 1977, Magnavox Odyssey² in 1978, Intellivision in 1979 and then the Emerson Arcadia 2001, ColecoVision, Atari 5200, and Vectrex, all in 1982. By the end of the era, there were over 15 different consoles. It coincided with, and was partly fueled by, the golden age of arcade video games. The generation also included the entry of handheld consoles, chiefly led by Nintendo’s foray into gaming led by the Blue Ocean philosophy of Gunpei Yokoi and the release of the Game & Watch in 1980. 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. 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. The first system of the generation and some others, such as the RCA Studio II, still came with built-in games while also being able to use cartridges. 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. 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 and was the first third-party developer of video games. 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, 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. Some developers collapsed and almost no new games were released in 1984. The market did not fully recover until the third generation. The second generation ended on January 1, 1992, with the discontinuation of the Atari 2600.
Background
The primary driver of the second generation of consoles was the introduction of the low-cost microprocessor. Arcade games and the first generation of consoles used discrete electronic components including simple logic chips such as transistor-transistor logic -based integrated circuits. Custom application-specific integrated circuits like the AY-3-8500 were produced to replicate these circuits within a single chip, but still presented only a single fixed logic program. Once a game was shipped, there were only minimal variations that could be made by adjusting the positions of jumpers. As Atari, Inc. recognized, spending from and several months of development time on a hardware unit with a single dedicated game with only three-month shelf life before it was outdated by other competitors' offerings was not a practical business model, and instead some type of programmable console would be preferred.Intel introduced the first microprocessor, the 4004, in 1971, a special computer chip that could be sent a simple instruction and provide its result. This allowed the ability to create software programs around the microprocessor rather than fix the logic into circuits and ICs. Engineers at both Atari, Inc. and at Alpex Computer Corporation saw the potential to apply this to home consoles as prices for microprocessors became more affordable. Alpex's work led to partnership with semiconductor manufacturer Fairchild Camera and Instrument and lead to the release of the first such programmable home console, the Fairchild Channel F released in 1976, based on the Fairchild F8 microprocessor. The Channel F also established the use of ROM cartridges to provide the software for the programmable console, consisting of a ROM chip mounted on a circuit board within a hard casing that can withstand the physical insertion into the console and potential static electricity buildup. Atari's own programmable console, the Atari Video Computer System, was released in 1977 and based on the MOS Technology 6507 microprocessor, with a cartridge design influenced in part by the Channel F system. Other console manufacturers soon followed suit with the production of their own programmable consoles.
At the start of the second generation, all games were developed and produced in-house. Four former Atari programmers, having left from conflicts in management style after Atari was purchased by Warner Communications in 1976, established Activision in 1979 to develop their own VCS games, which included Dragster initially and the hits Kaboom! and Pitfall! later. Atari sued Activision and its founders on the basis of theft of trade secrets and violation of their non-disclosure agreements, and for Dragster allegedly infringing on the Drag Race arcade game from Atari's arm Kee Games; the cases were thrown out of court and the two companies settled in 1982, with Activision agreeing to pay Atari for a "technology license". This established Activision as the first third-party developer for a console. It also established a working model for other third-party developers, and several such companies followed in Activision's wake, partially contributing to the video game crash of 1983 due to oversaturation.
As the second generation of consoles coincided with the golden age of arcade video games, a common trend that emerged during the generation was licensing arcade video games for consoles. Many of them were increasingly licensed from Japanese video game companies by 1980, which led to Jonathan Greenberg of Forbes predicting in early 1981 that Japanese companies would eventually dominate the North American video game industry later in the decade.
At this stage, both consoles and game cartridges were intended to be sold for profit by manufacturers. However, by segregating games from the console, this approach established the use of the razorblade business model in future console generations, where consoles would be sold at or below cost while licensing fees from third-party games would bring in profits.
Fairchild Channel F
The Fairchild Channel F, also known early in its life as the Fairchild Video Entertainment System, was released by Fairchild Semiconductor in November 1976 and was the first console of the second generation. It was the world's first CPU-based video game console, introducing the cartridge-based game-code storage format. The console featured a pause button that allowed players to freeze a game. This allowed them to take a break without the need to reset or turn off the console so they did not lose their current game progress. Fairchild released twenty-six cartridges for the system, with up to four games being on each cartridge. The console came with two pre-installed games, Hockey and Tennis.Following the release of the Atari 2600, the Channel F's popularity waned quickly as the more action-driven games of the Atari 2600 drew more attention than the more educational and slow-paced games on the Channel F. By 1979, only an additional 100,000 units of the Channel F were sold for lifetime sales of 350,000.
In 1978, Fairchild redesigned the system into a new model, the Channel F System II. The System II streamlined some of the initial Channel F to reduce cost and improve consumer usage compared to the Atari 2600, such as improved controller connections and using the television speakers for audio output, but by the time it was released, the Atari 2600 had too much market advantage for Fairchild to overcome. After releasing 21 games for the system, Fairchild sold the Channel F technology to Zircon International in 1979, who then discontinued the system by 1983.
Atari 2600 and 5200
In 1977, Atari released its CPU-based console called the Video Computer System, later called the Atari 2600. Nine games were designed and released for the holiday season. Atari held exclusive rights to most of the popular arcade game conversions of the day. They used this key segment to support their older hardware in the market. This game advantage and the difference in price between the machines meant that each year, Atari sold more units than Intellivision, lengthening its lead despite inferior graphics. The Atari 2600 sold over 30 million units over its lifetime, considerably more than any other console of the second generation. In 1982, Atari released the Atari 5200 in an attempt to compete with the Intellivision. While superior to the 2600, poor sales and lack of new games meant Atari only supported it for two years before it was discontinued.Early Atari 2600 cartridges contained 2 kilobytes of read-only storage. This limit grew steadily from 1978 to 1983: up to 16 kilobytes for Atari 5200 cartridges. The Atari 2600 directly supports up to 4 kilobytes of cartridge ROM. Bank switching, a technique that allows two or more different parts of the program to use the same memory addresses, was required for the larger cartridges to work. The Atari 2600 cartridges got as large as 32 kilobytes through this technique. The Atari 2600 has only 128 bytes of RAM available in the console. A few late game cartridges contain a combined RAM/ROM chip, or an additional separate RAM chip, thus adding another 256 bytes or more of RAM inside the cartridge itself. The Atari 2600 standard joystick is a digital controller with a single button, released in 1977. The Atari 2600 also supports 4 analog paddle controllers.