Part 2

Generation Two (1985–1994)

As the 1980s wore on, the industry stabilized into its present model of strong first-party hardware and software supplemented with key—usually officially licensed—third-party support. While competition was still fierce among platforms, this consolidation allowed all parties involved with a particular system to both have a stake in and benefit from its success. It allowed the industry to move past the Great Videogame Crash, ensuring a smoother, more sustainable growth curve, and preventing future bubbles from popping.

The old guard of Atari and Commodore would soon lose relevance, vanishing completely at the start of Generation Three. In the computer market, only Apple’s Macintosh could withstand Microsoft’s DOS ...

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