10.2 The Evolution of Electronic Games

Pong, the electronic table tennis simulation game, signified the entry point into the world of video games for many people who grew up in the 1970s, and it now famously symbolizes early video games. However, a rare few had opportunities to experience the precursors to modern video games by as early as the 1950s if they knew where to look. In 1952 the Electronic Delay Storage Automatic Calculator (EDSAC), one of the first stored-information computers, developed a computer simulation of tic-tac-toe. In 1958 Brookhaven National Laboratory developed a game called Tennis for Two as a way to entertain people coming through the laboratory on tours (Egenfeldt-Nielsen, 2008).

These games would generate little interest among the modern game-playing public, but at the time they enthralled their users and introduced the basic elements of the cultural video game experience. In a time before personal computers, these games allowed the general public to interact with technology only accessible to those involved with abstract science. Tennis for Two created an interface where anyone with basic motor skills could use a complex machine. The first video games functioned early on as a form of media by essentially disseminating the experience of computer technology to those who did not have access to it.

As video games evolved, their role as a form of media grew as well. Video games have grown from simple tools that made computing technology understandable to forms of media that can communicate cultural values and human relationships.

The 1970s: The Rise of the Video Game

The 1970s saw the rise of video games as a cultural phenomenon. A 1972 article in Rolling Stone describes the early days of computer gaming:

Reliably, at any nighttime moment (i.e. non-business hours) in North America hundreds of computer technicians are effectively out of their bodies, locked in life-or-death space combat computer-projected onto cathode ray tube display screens, for hours at a time, ruining their eyes, numbing their fingers in frenzied mashing of control buttons, joyously slaying their friend and wasting their employers’ valuable computer time. Something basic is going on (Brand, 1972).

This scene describes Spacewar!, a game developed in the 1960s at the Massachusetts Institute of Technology (MIT) that spread to other college campuses and computing centers. In the early ’70s, very few people owned computers. Most computer users worked or studied at university, business, or government facilities. Those with access to computers quickly utilized them for gaming purposes.

Arcade Games

The creators of the first coin-operated arcade game Computer Space modeled the game on Spacewar! It fared poorly among the general public because of its difficult controls. In 1972, the fledgling company Atari created Pong, the table-tennis simulator that became an immediate successful. Atari initially placed Pong in bars with pinball machines and other games of chance, but as video games grew in popularity, they placed them in any establishment that would take them. By the end of the 1970s, so many people attempted to build video arcades that some towns passed zoning laws limiting them (Kent, 1997).

The end of the 1970s ushered in a new era—what some call the golden age of video games—with the game Space Invaders, an international phenomenon that exceeded all expectations. In Japan, the game achieved such popularity that it caused a national coin shortage. Games like Space Invaders illustrate both the effect of arcade games and their influence on international culture. In two different countries on opposite sides of the globe, Japanese and American teenagers, although they could not speak to one another, had the same experiences thanks to a video game.

Video Game Consoles

The first video game console for the home began selling in 1972. The Magnavox Odyssey, based on prototypes built by Ralph Behr in the late 1960s, included a Pong-type game. When the arcade version of Pong became popular, the Odyssey began to sell well. This prompted Atari to produce a home version of Pong and released it in 1974. Although this system could only play one game, its graphics and controls surpassed the Odyssey. Because of these advantages, the Atari home version of Pong sold well, and a host of other companies began producing and selling their own versions of Pong (Herman, 2008).

The development of game cartridges that stored the games provided a major step forward in the evolution of video games. This allowed consoles to play multiple games. With this technology, video game console makers could switch their emphasis to producing games. Several groups, such as Magnavox, Coleco, and Fairchild, released versions of cartridge-type consoles, but Atari’s 2600 console had the upper hand because of the company’s work on arcade games. Atari capitalized off of its arcade successes by releasing games that the public knew well and performed well at arcades. The popularity of games such as Space Invaders and Pac-Man made the Atari 2600 a successful system. The late 1970s also saw the birth of companies such as Activision, which developed third-party games like Pitfall! for the Atari 2600 (Wolf).

Home Computers

The birth of the home computer market in the 1970s paralleled the emergence of video game consoles. The Altair, the first computer designed and sold for the home consumer, first sold in 1975 mainly to a hobbyist market, several years after the first video game consoles. During this period, people such as Steve Jobs, the founder of Apple, had built computers by hand and sold them to get their start-up businesses going. In 1977, three important computers—Radio Shack’s TRS-80, the Commodore PET, and the Apple II—started production and began selling to the home market (Reimer, 2005).

The rise of personal computers allowed for the development of more complex games. Designers of games such as Mystery House, developed in 1979 for the Apple II, and Rogue, developed in 1980 and played on IBM PCs, used the processing power of early home computers to develop video games that had extended plots and storylines. In these games, players move through landscapes composed of basic graphics, solving problems and working through an involved narrative. These games eclipsed the capabilities of text-based games like Zork. The development of video games for the personal computer platform expanded the ability of video games to act as media by hosting complex stories and new forms of interaction to take place between players.

The 1980s: The Crash

Atari owed its success in the home console market in large part to its ownership of already-popular arcade games and the large number of game cartridges available for the system. These strengths, however, eventually proved detrimental to the company and led to the video game crash of 1983. Atari bet heavily on its past successes with popular arcade games by releasing Pac-Man for the Atari 2600. The successful arcade game did not translate well to the home console after rushing its production, leading to disappointed consumers and lower-than-expected sales. Additionally, Atari produced 10 million of the lackluster Pac-Man games on its first run, even though meant they had produced one copy for every console they had sold up to that point. A game based on the movie E.T.: The Extra-Terrestrial gained notoriety as one of the worst games in Atari’s history. Consumers hated the confusing game despite the success of the movie, and Atari had again bet heavily on its success. Atari buried piles of unsold E.T. game cartridges in the New Mexico desert under a veil of secrecy  (Monfort & Bogost, 2009).

As retail outlets became increasingly wary of home console failures, they began stocking fewer games on shelves. This action, combined with an increasing number of companies producing games, led to overproduction and a resulting fallout in the video game market in 1983. Many smaller game developers could not withstand this downturn and went out of business. Although Coleco and Atari survived the crash, neither company regained its former share of the video game market. Some speculated the home video game market would never recover .

The Rise of Nintendo

Nintend o, a Japanese card and novelty producer that had begun to produce electronic games in the 1970s, enjoyed success with arcade games such as Donkey Kong in the early 1980s. Its first home console the Famicom, developed in 1984 for sale in Japan, tried to succeed where Atari had failed. The Nintendo system used newer, better microchips, bought in large quantities, to ensure high-quality graphics at a price consumers could afford. Keeping console prices low meant Nintendo had to rely on games for most of its profits and maintain control of game production. Atari had failed to do this, and it led to a glut of low-priced games that caused the crash of 1983. Nintendo got around this problem with proprietary circuits that would not allow the console to play unlicensed games. This allowed Nintendo to dominate the home video game market through the end of the decade when one-third of homes in the United States had a Nintendo system (Cross & Smits, 2005).

Nintendo introduced its Nintendo Entertainment System (NES) in the United States in 1985. The game Super Mario Brothers, released with the system, signified a landmark in video game development. The game employed a narrative in the same manner as more complicated computer games, but it featured accessible controls and simple objectives. The game appealed to a younger demographic, generally boys in the 8–14 range, than the one targeted by Atari (Kline, et. al., 2003). Its designer, Shigeru Miyamoto, tried to mimic the experiences of childhood adventures, creating a fantasy world not based on previous models of science fiction or other literary genres (McLaughlin, 2007). Super Mario Brothers also gave Nintendo an iconic character who they have since used in numerous other games, television shows, and even two movies . The development of this type of character and fantasy world became the norm for video game makers. Games such as The Legend of Zelda became franchises with film and television possibilities rather than simply one-off games.

As video games developed as a form of media, the public struggled to come to grips with the kind of messages this medium passed on to children. These games did not resemble the simple games of reflex comparable to similar nonvideo games or sports; these forms of media included stories and messages that concerned parents and children’s advocates. Arguments about the larger meaning of the games became common, with some seeing the games as driven by ideas of conquest and gender stereotypes, whereas others saw basic stories about traveling and exploration (Fuller & Jenkins, 1995).

Other Home Console Systems

Other software companies attempted to establish themselves in the home console market in the mid-1980s. Atari released the 2600jr and the 7800 in 1986 after Nintendo’s success, but the consoles could not compete with Nintendo. The Sega Corporation, which had produced arcade video games, released its Sega Master System in 1986. Although the system had more graphics possibilities than the NES, Sega failed to make a dent in Nintendo’s market share until the early 1990s, with the release of Sega Genesis (Kerr, 2005).

Computer Games Flourish and Innovate

The enormous number of games available for Atari consoles in the early 1980s took its toll on video arcades. In 1983, arcade revenues had fallen to a three-year low, leading game makers to turn to newer technologies that home consoles could not replicate. This included stunningly animated arcade games powered by laser discs, such as Dragon’s Lair and Space Ace, but their novelty soon wore off due to the simplistic nature of the gaming interface, and laser-disc games became museum pieces (Harmetz, 1984). In 1989, museums already curated exhibitions of early arcade games that included ones from the early 1980s. Although newer games continued to come out on arcade platforms, they could not compete with the home console market and never achieved their previous successes from the early 1980s. Increasingly, arcade gamers chose to stay at home to play games on computers and consoles. Today, dedicated arcades represent a dying breed . Most that remain, like the Dave & Buster’s and Chuck E. Cheese’s chains, offer full-service restaurants and other entertainment attractions to draw in business.

Home games fared better than arcades because they could ride the wave of personal computer purchases that occurred in the 1980s. Some important developments in video games occurred in the mid-1980s with the development of online games. Multiple players could role-play at once in multiuser dungeons or MUDS. The generally text-based games described the world of the MUD through text rather than illustrating it through graphics. The games allowed users to create a character and move through different worlds, accomplishing goals that awarded them with new skills. If characters attained a certain level of proficiency, they could then design their area of the world. Habitat, a game developed in 1986 for the Commodore 64, added graphics to the storyline. Users dialed up on modems to a central host server and then controlled characters on screen, interacting with other users (Reimer, 2005).

During the mid-1980s, a demographic shift occurred. Between 1985 and 1987, games designed to run on business computers rose from 15 percent to 40 percent of games sold (Elmer-Dewitt, et. al., 1987). This trend meant that game makers could use the increased processing power of business computers to create more complex games. It also demonstrated that adults had an interest in computer games and could become a profitable market.

The 1990s: The Rapid Evolution of Video Games

Video games evolved at a rapid rate throughout the 1990s, moving from the first 16-bit systems (named for the amount of data they could process and store) in the early 1990s to the first Internet-enabled home console in 1999. As companies focused on new marketing strategies, they targeted wider audiences, and video games’ influence on culture began to expand.

Console Wars

Nintendo’s dominance of the home console market throughout the late 1980s allowed it to build a large library of games for use on the NES. This also proved problematic, however, because Nintendo showed reluctance to improve or change its system for fear of making its game library obsolete. Technology had changed in the years since the introduction of the NES, and companies such as NEC and Sega prepared to challenge Nintendo with 16-bit systems (Slaven).

T he Sega Master System had failed to challenge the NES, but with the release of its 16-bit system, Sega Genesis, the company pursued a new marketing strategy. Whereas Nintendo targeted 8- to 14-year-olds, Sega’s marketing plan targeted 15- to 17-year olds, making more mature games and advertising them during programs such as the MTV Video Music Awards. The campaign successfully branded Sega as a cooler version of Nintendo and moved mainstream video games into a more mature arena. Nintendo responded to the Sega Genesis with its own 16-bit system, the Super NES, and began creating more mature games as well. Games such as Sega’s Mortal Kombat and Nintendo’s Street Fighter competed to raise the level of violence possible in a video game. Sega’s advertisements even suggested that it made the better game because of its more violent possibilities (Gamespot).

By 1994, companies such as 3DO, with its 32-bit system, and Atari, with its allegedly 64-bit Jaguar, attempted to get in on the home console market but failed to use effective marketing strategies to back up their products. Both systems fell out of production before the end of the decade. Sega, fearing that its system would become obsolete, released the 32-bit Saturn system in 1995. They rushed the system into production and did not have enough games available to ensure its success (Cyberia PC). Sony stepped in with its PlayStation console at a time when Sega’s Saturn floundered and before Nintendo could release its 64-bit system. This system targeted an even older demographic of 14- to 24-year-olds and made a large effect on the market; by March of 2007, Sony had sold 102 million PlayStations (Edge Staff, 2009).

Computer Games Gain Mainstream Acceptance

Computer games had avid players, but they still represented a niche market in the early 1990s. The development of the first-person shooter genre signified an important step in the mainstream acceptance of personal computer games. First popularized by the 1992 game Wolfenstein 3D, these games put the player in the character’s perspective, allowing them to experience the sensation of firing weapons and attacking enemies. Doom, released in 1993, and Quake, released in 1996, used the increased processing power of personal computers to create vivid three-dimensional worlds that video game consoles of the era could not replicate. These games pushed realism to new heights and began attracting public attention for their graphic violence.

The game Myst, an adventure game where the player walked around an island solving a mystery, drove sales of CD-ROM drives for computers, and motivated audiences outside of the video-game-playing community to explore the medium. In the 1990s, Myst, its sequel Riven, and other nonviolent games such as SimCity and Sid Meier’s Civilization demonstrated the growing popularity of alternative game genres alongside the dominance of action titles like Doom and Quake (Miller, 1999). These nonviolent games appealed to people who did not generally play video games, increasing the form’s audience and expanding the types of information that video games put across.

Online Gaming Gains Popularity

A major advance in game technology came with the increase in Internet use by the general public in the 1990s. Doom permitted multiplayer gaming through the Internet, a major factor in its appeal. Strategy games such as Command and Conquer and Total Annihilation also included options where players could play each other over the Internet. Other fantasy-inspired role-playing games, such as Ultima Online, used the Internet to initiate the massively multiplayer online role-playing game (MMORPG) genre (Reimer). These games used the Internet as their platform, much like the text-based MUDs, creating a space where individuals could play the game while socially interacting with one another.

Portable Game Systems

The development of portable game systems boosted another important aspect of video game evolution during the 1990s. People could purchase handheld electronic games since the 1970s, and the early 1980s featured a handheld system with interchangeable cartridges. Nintendo released the Game Boy in 1989, using the same principles that made the NES dominate the handheld market throughout the 1990s. Nintendo bundled the Game Boy with Tetris, using the game’s popularity to drive purchases of the unit. The unit’s simple design meant users could get 20 hours of playing time on a set of batteries, and Nintendo left this basic design essentially unaltered for most of the decade. More advanced handheld systems, such as the Atari Lynx and Sega Game Gear, could not compete with the Game Boy despite their superior graphics and color displays (Hutsko, 2000).

The decade-long success of the Game Boy belies the conventional wisdom of the console wars that more advanced technology makes for a more popular system. Audiences found the Game Boy’s static, simple design easy to use, and its stability allowed for the development of a large library of games. Despite using technology nearly a decade old, the Game Boy accounted for 30 percent of Nintendo of America’s overall revenues at the end of the 1990s (Hutsko, 2000).

The Early 2000s: 21st-Century Games The Console Wars Continue

Sega gave its final effort in the console wars with the Sega Dreamcast in 1999. This console could connect to the Internet, emulating the sophisticated computer games of the 1990s. The new features of the Sega Dreamcast could not save the brand, however, and Sega discontinued production in 2001, leaving the console market entirely (Business Week).

Sony’s release of the PlayStation 2 (PS2) in 2000 likely caused the Dreamcast’s downfall. The PS2 could function as a DVD player, expanding the role of the console into an entertainment device that did more than play video games . This console enjoyed an incredible production run, with more than 106 million units sold worldwide by the end of the decade (A Brief History of Game Console Warfare).

In 2001, two major consoles attempted to compete with the PS2: the Xbox and the Nintendo GameCube. The Xbox represented Microsoft’s attempt to enter the market with a console that expanded on the functions of other game consoles. The unit had features similar to a PC, including a hard drive and an Ethernet port for online play through its service, Xbox Live. The popularity of the first-person shooter game Halo, an Xbox exclusive release, boosted sales as well. Nintendo’s GameCube did not offer DVD playback capabilities, choosing instead to focus on gaming functions. Both of these consoles sold millions of units but did not come close to the sales of the PS2.

Computer Gaming Becomes a Niche Market

As consoles developed to rival the capabilities of personal computers, game developers began to focus more on games for consoles. From 2000 to the end of the decade, the popularity of personal computer games has gradually declined. The computer gaming community, while still significant, focuses on gamers willing to pay a lot of money on personal computers designed specifically for gaming, often including multiple monitors and user modifications that allow personal computers to play newer games. This type of market, though profitable, does not have the numbers to compete with the audience for the much cheaper game consoles (Kalning, 2008).

The Evolution of Portable Gaming

Nintendo continued its control of the handheld game market into the 2000s with the 2001 release of the Game Boy Advance, a redesigned Game Boy that offered 32-bit processing and compatibility with older Game Boy games. In 2004, anticipating Sony’s upcoming handheld console, Nintendo released the Nintendo DS, a handheld console that featured two screens and Wi-Fi capabilities for online gaming. Sony released the PlayStation Portable (PSP) the following year. The device featured Wi-Fi capabilities as well as a flexible platform that could play other media such as MP3s (Patsuris, 2004). Though the Nintendo DS (and later 3DS) and PSP enjoyed great popularity, handheld game consoles would eventually lose most of their market to a different mobile device: the smartphone.

One interesting innovation in mobile gaming occurred in 2003 with the release of the Nokia N-Gage. The N-Gage combined a game console and mobile phone that, according to consumers, did not fill either role very well. Nokia discontinued the product line in 2005, but the idea of playing games on phones persisted (Stone, 2007). Apple currently dominates the industry of mobile phone games; in 2008 and 2009 alone, iPhone games generated $615 million in revenue (Farago, 2010).

Video Games Today

The trends have shown a steadily increasing market for video games . Newer control systems and family-oriented games have made it common for many families to engage in video game play as a group. Online games have continued to develop, gaining unprecedented numbers of players. The overall effect of these innovations led to the increasing acceptance of video game culture by the mainstream.

Home Consoles

This century, three major companies dominate the home console market: Nintendo, Sony, and Microsoft. Microsoft’s Xbox 360 expanded media capabilities and integrated access to Xbox Live, an online gaming service. Sony’s PlayStation 3 (PS3) followed in 2006. It also featured enhanced online access as well as expanded multimedia functions, with the additional capacity to play Blu-ray discs. Nintendo released the Wii at the same time. This console featured a motion-sensitive controller that departed from previous controllers and focused on accessible, often family-oriented games. This combination successfully brought in large numbers of new game players, including many older adults. By June 2010, in the United States, the Wii had sold 71.9 million units, the Xbox 360 had sold 40.3 million, and the PS3 trailed at 35.4 million (VGChartz, 2010). In the wake of the Wii’s success, Microsoft released Kinect and Sony the PlayStation Move to incorporate motion-sensitive systems, but neither sold as many units, though Kinect arguably laid the groundwork for Microsoft’s future ventures into virtual reality (Mangalindan, 2010).