Atari 5200 in the context of Magnavox Odyssey²

The Magnavox Odyssey 2 (stylized as Magnavox Odyssey), also known as Philips Odyssey 2, is a home video game console of the second generation that was released in 1978. It was sold in Europe as the Philips Videopac G7000, in Brazil and Peru as the Philips Odyssey and in Japan as Odyssey2 (オデッセイ2 odessei2). The Odyssey 2 was one of the five major home consoles prior to the 1983 video game market crash, along with Atari 2600, Atari 5200, Intellivision and ColecoVision.

In the early 1970s, Magnavox pioneered the home video game industry by successfully bringing the first home console to market, the Odyssey, which was quickly followed by a number of later models, each with a few technological improvements (see Magnavox Odyssey series). In 1978, Magnavox, now a subsidiary of North American Philips, decided to release an all-new successor, Odyssey 2.

In the history of video games, the second-generation era refers to computer and video games, video game consoles, and handheld video game consoles available from 1976 to 1992. Notable platforms of the second generation include the Fairchild Channel F, Atari 2600, Intellivision, Odyssey 2, and ColecoVision. The generation began in November 1976 with the release of the Fairchild Channel F. This was followed by the Atari 2600 in 1977, Magnavox Odyssey² in 1978, Intellivision in 1979 and then the Emerson Arcadia 2001, ColecoVision, Atari 5200, and Vectrex, all in 1982. By the end of the era, there were over 15 different consoles. It coincided with, and was partly fueled by, the golden age of arcade video games. The generation also included the entry of handheld consoles, chiefly led by Nintendo’s foray into gaming led by the Blue Ocean philosophy of Gunpei Yokoi and the release of the Game & Watch in 1980. This peak era of popularity and innovation for the medium resulted in many games for second generation home consoles being ports of arcade games. Space Invaders, the first "killer app" arcade game to be ported, was released in 1980 for the Atari 2600, though earlier Atari-published arcade games were ported to the 2600 previously. Coleco packaged Nintendo's Donkey Kong with the ColecoVision when it was released in August 1982.

Built-in games, like those from the first generation, saw limited use during this era. Though the first generation Magnavox Odyssey had put games on cartridge-like circuit cards, the games had limited functionality and required TV screen overlays and other accessories to be fully functional. More advanced cartridges, which contained the entire game experience, were developed for the Fairchild Channel F, and most video game systems adopted similar technology. The first system of the generation and some others, such as the RCA Studio II, still came with built-in games while also being able to use cartridges. The popularity of game cartridges grew after the release of the Atari 2600. From the late 1970s to the mid-1990s, most home video game systems used cartridges until the technology was replaced by optical discs. The Fairchild Channel F was also the first console to use a microprocessor, which was the driving technology that allowed the consoles to use cartridges. Other technology such as screen resolution, color graphics, audio, and AI simulation was also improved during this era. The generation also saw the first handheld game cartridge system, the Microvision, which was released by toy company Milton Bradley in 1979.

Star Raiders is a space combat simulator video game created by Doug Neubauer and published in 1980 by Atari, Inc. Originally released for the Atari 400/800 computers, Star Raiders was later ported to the Atari 2600, Atari 5200, and Atari ST. The player assumes the role of a starship fighter pilot, who must protect starbases from invading forces called Zylons. Piloting and combat are shown in the 3D cockpit view, while a 2D galactic map shows the state of the Zylon invasion. Neubauer made the game in his spare time at Atari, inspired by contemporary media such as Battlestar Galactica and Star Wars, as well as the 1971 mainframe game Star Trek.

Star Raiders became one of the most successful games on Atari's 400 and 800 computers, and their first killer app. It influenced space combat games such as Elite (1984) and Wing Commander (1990), as well as spawning an official sequel and a 2011 remake. Star Raiders was included in a list of ten games that were submitted as a game canon to the Library of Congress in 2007.

The Atari 2600 is a home video game console developed and produced by Atari, Inc. Released in September 1977 as the Atari Video Computer System (Atari VCS), it popularized microprocessor-based hardware and games stored on swappable ROM cartridges, a format first used with the Fairchild Channel F in 1976. The VCS was bundled with two joystick controllers, a conjoined pair of paddle controllers, and a game cartridge—initially Combat and later Pac-Man. Sears sold the system as the Tele-Games Video Arcade. Atari rebranded the VCS as the Atari 2600 in November 1982, alongside the release of the Atari 5200.

During the mid-1970s, Atari had been successful at creating arcade video games, but their development cost and limited lifespan drove CEO Nolan Bushnell to seek a programmable home system. The first inexpensive microprocessors from MOS Technology in late 1975 made this feasible. The console was prototyped under the codename Stella by Atari subsidiary Cyan Engineering. Lacking funding to complete the project, Bushnell sold Atari to Warner Communications in 1976.

Centipede is a 1981 fixed shooter video game developed and published by Atari, Inc. for arcades. Designed by Dona Bailey and Ed Logg, it was one of the most commercially successful games from the golden age of arcade video games, and one of the first widely played by women and girls. The primary objective is to shoot all the segments of a centipede that winds down the playing field.

Centipede was ported to Atari's own 2600, 5200, 7800, and 8-bit computers. Under the Atarisoft label, the game was sold for the Apple II, Commodore 64, ColecoVision, VIC-20, IBM PC (as a self-booting disk), Intellivision, and TI-99/4A. Superior Software published the port for the BBC Micro. Versions for the Game Boy and Game Boy Color were also produced, as well as a version for the short-lived Game.com. Other developers released more than 25 Centipede clones for home computers. It was followed by the arcade sequel Millipede in 1982. In 1998, a 3D remake for Windows, Mac, PlayStation, and Dreamcast was published by Hasbro Interactive.

The Atari 8-bit computers, formally launched as the Atari Home Computer System, are a series of home computers introduced by Atari, Inc., in 1979 with the Atari 400 and Atari 800. The architecture is designed around the 8-bit MOS Technology 6502 CPU and three custom coprocessors which provide support for sprites, smooth multidirectional scrolling, four channels of audio, and other features. The graphics and sound are more advanced than most of its contemporaries, and video games are a key part of the software library. The 1980 first-person space combat simulator Star Raiders is considered the platform's killer app.

The Atari 800 was positioned as a high-end model and the 400 as more affordable. The 400 has a pressure-sensitive, spillproof membrane keyboard and initially shipped with a non-upgradable 8 KB of RAM. The 800 has a conventional keyboard, a second cartridge slot, and allows easy RAM upgrades to 48K. Both use identical 6502 CPUs at 1.79 MHz (1.77 MHz for PAL versions) and coprocessors ANTIC, POKEY, and CTIA/GTIA. The plug-and-play peripherals use the Atari SIO serial bus, and one of the SIO developers eventually went on to co-patent USB (Universal Serial Bus). The architecture of the Atari 8-bit computers was reused in the 1982 Atari 5200 game console, but games for the two systems are incompatible.

The Atari 7800 ProSystem, or simply the Atari 7800, is a home video game console released by Atari Corporation in May 1986 as the successor to both the Atari 2600 and Atari 5200. It can run almost all Atari 2600 cartridges, making it the first console with backward compatibility. It shipped with a two button controller, instead of the 2600-standard Atari CX40 joystick, and with Pole Position II as the pack-in game. The European model has a gamepad instead of a joystick. Most of the early releases for the system are ports of 1981–1983 arcade video games. The final wave of 7800 cartridges is closer in style to what was available on other late 1980s consoles, such as Scrapyard Dog and Midnight Mutants.

Designed by General Computer Corporation, the 7800 has custom graphics hardware similar to early 1980s arcade video games and is a significant improvement over Atari's previous consoles. The same Television Interface Adaptor chip that launched with the Atari VCS in 1977, included for compatibility with cartridges for that system, is used to generate two-channel audio for 7800 games. In an effort to prevent the flood of poor quality games that contributed to the video game crash of 1983, cartridges had to be digitally signed by Atari.