Why the history of video game consoles is a story of planned obsolescence

History · Published 3 October 2026 Swipe more like this →

In short: Video game consoles evolved through cyclic generations, roughly every five years, driven by Moore's Law and a razor-and-blades business model. Manufacturers intentionally design systems to be replaced, pushing consumers toward newer hardware while shifting profits from the console itself to the games. This cycle has defined the industry since the 1970s.

The modern console era began in 1972 with the Magnavox Odyssey, a device conceived by Ralph H. Baer. Early systems were often dedicated units with pre-built games, but the industry soon shifted toward the second generation's cartridge-based architecture. This transition allowed for a wider variety of software, but also led to the 1983 North American market crash, triggered by a flood of low-quality titles and intense competition from home computers.

Following the crash, Nintendo revitalized the industry with the 1983 Famicom, later rebranded as the Nintendo Entertainment System (NES) for North America. Nintendo implemented strict publishing controls, including a lockout chip that ensured only approved cartridges would function. This era also saw the rise of the 'bit wars,' where manufacturers like NEC, Sega, and Nintendo marketed their systems based on processor word length—such as 8-bit or 16-bit—to signal technological superiority to consumers.

By the fourth generation, the industry saw the emergence of 'console wars,' most notably between Nintendo and Sega. Sega successfully challenged Nintendo's dominance in North America by marketing a 'cool' mascot, Sonic the Hedgehog, to appeal to Western youth. As technology matured, the industry moved away from bit-count marketing toward optical disc storage, which offered significantly more capacity than traditional cartridges. This shift paved the way for the fifth generation and the entry of new players like Sony, following a failed partnership with Nintendo.

Today, the console market is dominated by the 'big three'—Nintendo, Sony, and Microsoft. While the industry continues to follow cyclic hardware releases, the handheld market has significantly waned since the late 2000s due to the rise of mobile gaming. Despite these shifts, the fundamental strategy of planned obsolescence remains a cornerstone of the industry, ensuring that consumers are regularly transitioned to newer, more powerful hardware.

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