In the late 1970s, the console market crashed. This was because the obsolete consoles tried to clear all their stock by selling off all their systems at a loss. This created a glut in the market, and some of the successful consoles companies went down as well.
It was in the 80’s that computers became more common in the home. This was because they had got a lot smaller than older computers which could fill a whole room, and also had become more powerful and more affordable as well as the crash in the console market. Early home computers included the Commodore 64, Sinclair ZX Spectrum and the Amstrad CPC. This led to more games being made for these computers, as they were more assessable to the public.
A lot of adventure games were made for these computers. At the start of the decade, home computers could not handle much in the way of graphics, so a lot of these games where text based adventure games. This was where the game described a scene and the items in it, and the player could type in commands. They were mostly puzzle based. An example of a game like this would be Zork (1980). The first graphical adventure game was Mystery House (1980) on the Apple II which only had static monochrome drawings and still involved typing commands. By 1987 the first point and click adventure game, Maniac Mansion removed the text based part of the game altogether.
Consoles crashed again in 1983, but where brought back into popularity by Nintendo releasing the NES. By advertising it as a toy, they were able to sell their product. This was also helped by the release of their game Super Mario Brothers in the package. Other successful games on the NES include the Legend of Zelda, Final Fantasy and Metal Gear. This revived the market. Sega created a new console, the Sega Master System, but this did poorly.
The popularity of the arcade games began to decline in the start of the 1990’s as arcade games began to be released on consoles and as consoles became more popular. This was also the decade when 3D graphics began to be the developed. This allowed for new genres of games to be made, such as first person shooters and real time strategy games. In 1991, Nintendo began to be rivalled by Sega. Sega released its new console, the Sega Mega Drive, with the game Sonic the Hedgehog. In 1994 a disagreement with Sony and Nintendo made Sony release the Playstation as its own console. In 1996 Nintendo released the Nintendo 64, which was one of the few consoles which still used cartridges, which some saw as a disadvantage. The last console released in this decade was the Sega Dreamcast. This was Segas last console and was released in 1999.
This was also the decade when online games started to really take shape. Games such as Quake made online multiplayer almost a key feature of FPS. Online play also became a big part of RTS, with games like Starcraft and Age of Empires using it to allow players to play against each other.
In summary, the 1980’s and 1990’s were decades of innovation in the games industry, laying the foundation for the games and genres we have today.