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".
Video gaming in Japan
In 1991, "Final Fantasy IV" was one of the first role-playing games to feature a complex, involving plot, placing a much greater emphasis on character development, personal relationships, and dramatic storytelling. It also introduced a new battle system: the "Active Time Battle" system, developed by Hiroyuki Ito, where the time-keeping system does not stop. The fact that enemies can attack or be attacked at any time is credited with injecting urgency and excitement into the combat system. The ATB combat system was considered revolutionary for being a hybrid between turn-based and real-time combat, with its requirement of faster reactions from players appealing to those who were more used to action games.
Nintendo executives were initially reluctant to design a new system, but as the market transitioned to the newer hardware, Nintendo saw the erosion of the commanding market share it had built up with the Nintendo Entertainment System. Nintendo's fourth-generation console, the Super Famicom, was released in Japan on November 21, 1990; Nintendo's initial shipment of 300,000 units sold out within hours. Despite stiff competition from the Mega Drive/Genesis console, the Super NES eventually took the top selling position, selling 49.10 million units worldwide, and would remain popular well into the fifth generation of consoles. Nintendo's market position was defined by their machine's increased video and sound capabilities, as well as exclusive first-party franchise titles such as "Super Mario World", "" and "Super Metroid".