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In 1977, Atari introduced the Atari Video Computer System (VCS), though it was most often referred to as the Atari 2600 or the 2600.

The console was powered by MOS Technologies 6502 processor providing the Atari 2600 with a significant advantage over its competitors and the previous generation game consoles.

First-generation game consoles had the games hard wired to the console. The cartridges simply unlocked the games using jumpers in the cartridge. Most of these console were limited to 12 games or less. PONG only came with the single game: Pong.

Using the 6502 processor as the core, the Atari 2600 had limited memory, but the guts of the games were included on ROM chips inside the game cartridges offering an unlimited number of games.

The console very quickly solidified itself as the console to beat. While the 2600 did not have the best graphics and sound of any console, Atari had several restrictive contracts that guaranteed all arcade hits and popular games ported or developed for the Atari 2600 could not be ported or developed for other consoles.

The 2600 was the longest selling console when production stopped in 1992. And while the console stopped production in 1992, games continued to be developed for the console even today.

With millions of units sold, there is still a healthy market of Atari 2600 games and consoles on ebay and at garage sales across the world.

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In 1982, Atari release the Atari 5200 and was intended as a replacement for the Atari 2600. The internals for the 5200 were essentially taken from the company?s 8-bit computers, the Atari 400/800s. Despite being a replacement for the 2600, Atari still directed more funds toward the 2600.

The results were evident in a series of issues and most importantly was the incompatibility with the 2600, and because it did not have a keyboard, it could not properly run Atari 400/800 software. As a result, the Atari 5200 enjoyed moderate success before being killed off by the video game crash.

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In 1977, was release by Midway and marketed as a console and home computer system to compete against the Atari 2600. The Astrocade has more powerful graphics than the 2600, it had a keypad that supported creating basic programs and its controllers were better suited for the games of the day with a twisty knob.

However, Atari still held the rights to all the popular arcade games and with the video game crash, Midway exited the market.

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In 1982, Coleco released the Colecovision. The Intellivision offered better graphics and power over the market leader Atari, however, the Colecovision offered even better sound and graphic. As a result, sales of the unit took off, which resulted in three major consoles fighting for first place, and by 1983, Coleco now had the top spot in the console market.

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The Emerson Arcadia 2001 is considerably more powerful than the then-dominant Atari 2600. However, the new ColecoVision and Intellivision offered superior graphics and sound. Atari had also released the 5200 console and would not allow Emerson to get access to any of the popular arcade games. As a result, the console was essential dead on arrival when it was released in the middle of 1982.

Moreover, after creating popular titles like Pac-Man, Galaxian and Defender, Atari sued them, which resulted in Emerson being stuck with a huge inventory of games they could not sell.

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The Fairchild VES was the world's first processor-based video game console. Previous generation consoles had their games inside the console. The cartridges simply contained switches to enable the games. The Fairchild was console to use the cartridge as the storage medium. Fairchild released their console in August 1976. When Atari released their VCS the following year, Fairchild renamed their console to Fairchild Channel F.

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Intellivision released by Mattel Electronics and released in 1980. The Intellivision has a processor with instructions that are10 bits wide and registers that are 16 bits wide. What all this techno talk means is that the processor is more robust and can provide a better gaming experience and as a result, the system became very popular.

While this was not the first system to challenge Atari, it was the first to pose a serious threat to Atari's dominance. Intellivision TV commercial mercilessly attacked the Atari VCS's lesser capabilities with side-by-side game comparisons. However, Atari held exclusive rights to most of the popular arcade games of the day and at the time, it was the popular games of the arcade that drove home sales. Despite Atari?s inferior graphics, the Atari had better marketing and a better price point. Price parity has been a major consideration in the console market ever since.

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In 1978, Magnavox released its first processor-based console, the Odyssey 2. It was know by as the Philips G7000 in many European countries as it was released by Philips Electronics. The console sold several million units through 1983. Like many consoles of this period, there are still games being made by companies like Jakks Pacific Inc.

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The SEGA SG-1000 was test-marketed in 1981 and released to Japan in 1983. Sega released an updated version called the SG-1000 Mark II and a computer version, the SC-3000.

The SG-1000 runs all SC-3000 games and applications except for Music and Basic cartridges. There was also a keyboard add-on made for the SG-1000 in efforts to provide it with computer-like functionality.

The SG-1000 is one of the most rare and sought-after devices.