Console wars have always been vicious, as competing companies vie for the attention of the gaming public. The weapons are great exclusive games, the battlefield toy and electronics stores, the spoils a majority share of the market and the adoration of millions of die-hard fans. Every generation of consoles sees its own battles, but none have seemed quite so fierce as the era of the NES and the Genesis.
Nintendo led the pack with the Nintendo Entertainment System, known as the Famicom in Japan. They established an enormously strong presence with games like Super Mario Bros and the Legend of Zelda. When they hit the scene, they had plenty of ground to make up - the disasters that Atari had unleashed on the industry nearly crippled it. Nintendo managed to salvage the industry and even thrive by recognizing that a system survives on the strength of its games. While their strict licensing scheme with publishers earned them ire - being allowed only five games a year on the NES was suffocating - it prevented the system from being flooded with mediocre games.The Nintendo brand was strong.
They also had a wealth of talent on their side. Shigeru Miyamoto, easily one of the greatest designers of all time, gave them hit after hit. Gunpei Yokoi masterminded the launch of the Game Boy, still the most successful system of all time. Realizing the quality that Konami and Acclaim could put out, they gave them a workaround for additional licenses to keep great games on the NES.
Sega's greatest success was establishing a strong, unique brand. Tom Kalinske recognized that they needed to get out from Nintendo's shadow. They created edgier marketing, attacking the competition directly. Sonic emerged as a cooler alternative to Mario, attracting an older audience. Where Nintendo refused to allow adult content on the NES, Sega eagerly kept the uncensored violence of Mortal Kombat and Night Trap on the Genesis. Nintendo was the family company, so Sega became the cool kids' club.
Atari's attempt to re-enter the market was too little, too late. While the 7800 had the advantage of backwards compatibility, it couldn't attract developers. Too many had already signed exclusive contracts with Nintendo or jumped ship to Sega.
Who won that war? Nintendo dominated the overall international market, particularly Japan. Sega may not have been able to topple Nintendo, but they beat them in specific regions such as Europe. Atari still made profits off of the 7800, even if their share of the market was extremely low. In the end, not everyone won, but none of them truly lost.