The next year, Sega introduced the Master System. A very impressive unit with excellent Role Playing titles, better sound and better graphics and cooler accessories like 3D glasses, but just as the Astrocade was squished by the popularity of the 2600, the timing was bad and it couldn't compete with the Nintendo system in 1986.
The Atari 7800 was a bit more successful than the 5200 because of it's backwards compatibility with the 2600, but the damage had been done to Atari. Besides, the 7200 had the same old titles and virtually no marketing. By 1987, Atari had essentially repackaged one of it's 8-bit computer systems as a game console and labeled it the "XE Game System" and released a miniature version of the 2600 called the "2600jr". Both went over fairly unnoticed.
Also in 1987, Activision bought home computer game company Infocom. There were hopes that Activision may survive the videogame console crash by releasing more PC titles. The next year, they changed their name to "Mediagenic"
In 1989, the home videogame console market boomed again with the release of two actual 16-bit game consoles (as opposed to Intellivision's 16-bit console with 10-bit games): The Sega Genesis and NEC's Turbo-Grafx 16 which was the first game console to utilize a CD-ROM drive.
The Turbo-Grafx was already a big hit in Japan where it was known as the PC Engine and the Sega Genesis, known in Japan as the Mega Drive, was not nearly as popular. Once the two landed on American soil, the tables turned.
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