History of the Nintendo Entertainment System
In the late 80s, Nintendo's dominance was threatened by newer, technologically superior consoles. 1987, NEC and Hudson Soft released the PC Engine, and a year later, Sega released the 16 bit Mega Drive. Both were introduced in North America in 1989, where they were respectively marketed as the "TurboGrafx-16" and the "Genesis." Facing new competition from the PC Engine in Japan, and the Genesis in North America, Nintendo's market share began to erode. Nintendo responded in the form of the Super Famicom ("Super Nintendo Entertainment System" in North America and Europe), the Famicom's 16-bit successor, in 1990. Although Nintendo announced their intention to continue to support the Famicom alongside their newer console, the success of the newer offering began to draw even more gamers and developers from the original NES, whose decline accelerated. However, Nintendo did continue support of the NES for about three years after the September 1991 release of the Super NES, with the NES's final first-party games being "" and "Wario's Woods".
Hotel Mario
In 1989, Nintendo and Sony agreed to develop a CD-ROM-based add-on for the Super Nintendo Entertainment System (SNES), known as the SNES-CD or Nintendo Play-Station, that would allow for full motion video (FMV) and larger games. However, Nintendo instead signed with Philips to make the add-on, and Sony redesigned their console as the PlayStation. By 1993, Nintendo had abandoned plans for the add-on. As part of dissolving the agreement, Nintendo licensed Philips to use some Nintendo characters for their CD-i console, resulting in three "Legend of Zelda" games as well as "Hotel Mario". Another "Mario" game, "Super Mario's Wacky Worlds", was canceled at the prototype stage. Nintendo had no part in the games' development; they were instead created by inexperienced developers.