16-bit era

In the history of computer and video games, the fourth generation (more commonly referred to as the 16-bit era) of games consoles began on October 30, 1987 with the Japanese release of NEC Home Electronics' PC Engine (known as the TurboGrafx-16 in North America). This generation saw strong console wars. Although NEC released the first fourth generation console, and was second to the Super Famicom in Japan, this era's sales were mostly dominated by the rivalry between Nintendo and Sega's consoles in North America: the Super Nintendo Entertainment System (the Super Famicom in Japan) and the Sega Genesis (named the Mega Drive in other regions). Nintendo was able to capitalize on its previous success in the third generation and managed to win the largest worldwide market share in the fourth generation as well. Sega was extremely successful in this generation and began a new franchise, Sonic the Hedgehog, to compete with Nintendo's Mario series of games. Several other companies released consoles in this generation, but none of them were widely successful. Nevertheless, several other companies started to take notice of the maturing video game industry and began making plans to release consoles of their own in the future. This generation ended with the discontinuation of the Neo Geo in 2004.

Some features that distinguished fourth generation consoles from third generation consoles include:

The PC Engine was the result of a collaboration between Hudson Soft and NEC and launched in Japan on October 30, 1987. It launched in North America during August 1989, under the name TurboGrafx-16.

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