Transition to 3D The
32-bit/
64-bit era is most noted for the rise of fully
3D polygon games. While there were games prior that had used three-dimensional polygon environments, such as
Virtua Racing and
Virtua Fighter in the
arcades and
Star Fox on the
Super NES, it was in this era that many game designers began to move traditionally 2D and
pseudo-3D genres into 3D on video game consoles. Early efforts from then-industry leaders
Sega and
Nintendo saw the introduction of the
32X and
Super FX, which provided rudimentary 3D capabilities to the
16-bit Genesis and Super NES. Starting in 1996, 3D video games began to take off with releases such as
Virtua Fighter 2 on the
Saturn,
Tomb Raider on the
PlayStation and Saturn,
Tekken 2 and
Crash Bandicoot on the PlayStation, and
Super Mario 64 on the
Nintendo 64. Their 3D environments were widely marketed and they steered the industry's focus away from
side-scrolling and
rail-style titles, as well as opening doors to more complex games and genres. 3D became the main focus in this era as well as a slow decline of cartridges in favor of
CDs, due to the ability to produce games less expensively and the media's high storage capabilities.
CD vs cartridge After allowing Sony to develop a
CD-based
prototype console for them and a similar failed partnership with
Philips, Nintendo decided to make the Nintendo 64 a cartridge-based system like its predecessors. Publicly, Nintendo defended this decision on the grounds that it would give games shorter load times than a compact disc (and would decrease piracy due to a certain chip in the ROM cartridge). However, it also had the dubious benefit of allowing Nintendo to charge higher licensing fees, as cartridge production was considerably more expensive than CD production. Many third-party developers like
EA Sports viewed this as an underhanded attempt to raise more money for Nintendo and many of them became more reluctant to release games on the N64. Nintendo's decision to use a cartridge based system sparked a debate in the video game magazines as to which was better. The chief advantages of the
CD-ROM format were (1) larger storage capacity, allowing for a much greater amount of game content; (2) considerably lower manufacturing costs, making them much less risky for game publishers; (3) lower retail prices due to the reduced need to compensate for manufacturing costs; and (4) shorter production times, which greatly reduced the need for publishers to predict the demand for a game. Its disadvantages compared to cartridge were (1) considerable load times; Almost every other contemporary system used the new CD-ROM technology. Consequent to the storage and cost advantages of the CD-ROM format, many game developers shifted their support away from the Nintendo 64 to the PlayStation. One of the most influential game franchises to change consoles during this era was the
Final Fantasy series, beginning with
Final Fantasy VII, which was developed for the PlayStation instead of the N64 due to storage capacity issues; prior
Final Fantasy games had all been published on Nintendo consoles – either the
NES or
Super NES, with the only other entries being on the
Wonderswan, or computers like the
MSX.
Overview The fifth generation was characterized by an unusually high number of console formats. More competing consoles comprised this generation than any other since the
video game crash of 1983, leading video game magazines of the time to frequently predict a second crash.
Major consoles The
3DO Interactive Multiplayer was one of the earliest fifth generation consoles and was released in October 1993. Despite having massive third-party support and an unprecedented amount of hype for a first-time entrant into the industry, it had early difficulties due to software development delays and its high price. For its initial release, the 3DO had a $700 retail price tag and only a single available game ready for market. The 3DO would be discontinued only three years later. While generally regarded as a failed system, the 3DO was this generation's fourth best-selling console in a crowded field with sales of 2 million units. The
Sega Saturn was Sega's entry into the stand-alone 32-bit console market. It was released in Japan simultaneously with the 32X in November 1994, although it would not have a North American release until six months later. selling far fewer units than the
Master System and
Mega Drive/Genesis before it. The
PlayStation, released in early December 1994, was the most successful console of this generation. With attention given by third-party developers and a more mature marketing campaign aimed at the 20–30 age group enabling it to achieve market dominance, it became the first home console to ship 100 million units worldwide. The
Nintendo 64, originally announced as the "Ultra 64", was released in 1996. The system's delays and use of the expensive cartridge format made it an unpopular platform among third-party developers. Several popular first-party titles allowed the Nintendo 64 to maintain strong sales in the United States, but it remained a distant second to the PlayStation.
Other consoles The
Amiga CD32 was released in September 1993 and sold in Europe, Australia, Canada and Brazil. It was never released in the United States due to
Commodore's bankruptcy and court-ordered import restrictions. Despite promising initial sales, the console was hampered by poor software quality with many titles being simply re-releases of older games. Production of the Amiga CD32 was discontinued after only eight months. The
Sega 32X, an add-on console produced by Sega for the
Genesis, was launched in November 1994. The
Sega Neptune, a standalone version of the 32X, was announced but ultimately canceled. Sega failed to deliver a steady flow of games for the 32X platform. With customers anticipating the PlayStation on the horizon, and with Sega's more technically advanced Saturn already competing on the market in Japan, sales of the 32X were poor.
NEC, creator of the
TurboGrafx-16 of the previous generation, entered the market with the
PC-FX in late December 1994. The system had a 32-bit processor, 16-bit stereo sound, and video capability. Despite its impressive specifications, it did not have a polygon processor and was marketed as a platform for 2D and
full motion video games. The PC-FX game library was criticized for being low in quality, and having titles that relied more on animation than gameplay. Due to low expected sales, it was never released outside of Japan. In 1995, Nintendo released the
Virtual Boy, a supposedly portable system capable of displaying
true 3D graphics, albeit in monochromatic red and black. Despite being marketed as a portable system, it is not actually portable in practice due to the lack of a head strap. It was discontinued within a year,
Aftermath of the fifth generation By the end of the 1995
Christmas shopping season, the fifth generation had come down to a struggle between the Sony PlayStation, Sega Saturn, 3DO Interactive Multiplayer, and the upcoming Nintendo 64. The Amiga CD32 had already been discontinued; the Jaguar, Genesis 32X, and Virtual Boy were still on the market but were considered a lost cause by industry analysts; the
Neo Geo CD had proven to appeal only to a niche market; and industry analysts had already determined that the yet-to-launch
Apple Bandai Pippin was too expensive to make any impact in the market. Moreover, even the leading fifth generation consoles were still facing sluggish sales. Combined sales for the PlayStation, Saturn, and 3DO barely topped 1 million units for the Christmas shopping season, as compared to combined sales of 4 million for the Sega Genesis and Super NES.
Focus groups showed that most children under 12 years old were equally happy playing on fourth generation consoles as they were playing on fifth generation consoles, making the fourth generation consoles more appealing to adults buying gifts for children, since they were cheaper. 1996 saw the fifth generation consoles' fortunes finally turn around. With the Saturn, PlayStation, and Nintendo 64 all showing dramatic increases in sales over the previous year, they claimed a combined 40% of the retail market for hardware and software, putting them in position to finally overtake the fourth generation consoles in 1997. The Sega Saturn suffered from poor marketing and comparatively limited third-party support outside Japan. Sega was also hurt by the Saturn's surprise four-month-early U.S. launch; third-party developers, who had been planning for the originally scheduled launch, could not provide launch titles and were angered by the move. Retailers were caught unprepared, resulting in distribution problems; some retailers, such as the now defunct
KB Toys, were so furious that they refused to stock the Saturn thereafter. Due to numerous delays, the Nintendo 64 was released one year later than its competitors. By the time it was finally launched in 1996, the PlayStation had already established its dominance, the Saturn was starting to struggle, and the 3DO and Jaguar had been discontinued. Its use of cartridge media rather than compact discs alienated some developers and publishers due to the space limits, the relatively high cost involved, and a considerably longer production time. In addition, the initially high suggested retail price of the console may have driven potential customers away, and some early adopters of the system who had paid the initial price may have been angered by Nintendo's decision to cut the price of the system by $50 six months after its release. However, the Nintendo 64 turned out to be a commercial success, particularly in the United States, where it sold 20.63 million units, nearly two thirds of its worldwide sales of 32.93 million units. It was also home to highly successful games such as
Star Fox 64,
Mario Kart 64,
The Legend of Zelda: Ocarina of Time, ''
The Legend of Zelda: Majora's Mask, Super Mario 64, GoldenEye 007, Banjo-Kazooie, and Super Smash Bros.'' While Nintendo 64 sold far more units than the Sega Saturn, Atari Jaguar, and 3DO combined, it posed no challenge to the
PlayStation's lead in the market. By 1997, 40% to 60% of American homes played on video game consoles. 30% to 40% of these homes owned a console, while an additional 10% to 20% rented or shared a console.
Changes in the industry After the fifth generation console wars came to a stop, several companies saw their outlooks change drastically.
Atari Atari Corporation, which was not able to recover its losses, ended up
merging into JTS Corporation in 1996. This caused
the Atari name to virtually disappear from the gaming market until 1998, when
Hasbro Interactive purchased the Atari assets from JTS for $5 million. On May 14, 1999, Hasbro Interactive announced that all rights to the Atari Jaguar were released into the
public domain, thus declaring
the platform open; this allowed anyone to freely create and publish games for the Jaguar without endorsement or licensing from Hasbro Interactive. Since then,
homebrew developers began to release uncompleted Jaguar games as well as several brand new titles to satisfy the system's
cult following.
Sega Sega's loss of consumer confidence (coupled with its previous console failures), along with their financial difficulties, set the company up for a similar fate in the next round of console wars. ==Home systems==