Fifth generation of video game consoles

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.

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).

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.

[citation needed] Nintendo's decision to use a cartridge based system sparked a debate in the video game magazines as to which was better.

[10][11] Its disadvantages compared to cartridge were (1) considerable load times;[6][8][10] (2) their inability to load data "on the fly", making them reliant on the console RAM;[6] and (3) the greater manufacturing costs of CD-ROM drives compared to cartridge slots, resulting in generally higher retail prices for CD-based consoles.

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.

However, sales at launch were well below the incumbent fourth generation consoles, and a small games library rooted in a shortage of third-party support made it impossible for the Jaguar to catch up, selling below 250,000 units.

[citation needed] The 32-bit Atari Panther, set to be released in 1991, was canceled due to unexpectedly rapid progress in developing the Jaguar.

In America and Europe however, a disastrous launch and an MSRP of $399 compared to the PlayStation's $299 caused it to be a commercial failure,[16] selling far fewer units than the Master System and Mega Drive/Genesis before it.

[citation needed] 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.

[17][18] Despite promising initial sales, the console was hampered by poor software quality with many titles being simply re-releases of older games.

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.

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.

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.

In 1995, Nintendo released the Virtual Boy, a supposedly portable system capable of displaying true 3D graphics, albeit in monochromatic red and black.

[24] By the end of the 1995 Christmas shopping season, the fifth generation had come down to a struggle between the Sony PlayStation, Sega Saturn, Atari Jaguar, and the upcoming Nintendo 64.

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.

[citation needed] 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.

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.

Bar chart showing the sales of the main 5th generation consoles