Sega in the context of "Sega Saturn"

An amusement arcade, also known as a video arcade, amusements, arcade, or penny arcade (an older term), is a venue where people play arcade games. These include arcade video games, pinball machines, electro-mechanical games, redemption games, merchandisers (such as claw machines), or coin-operated billiards or air hockey tables. In some countries, some types of arcades are also legally permitted to provide gambling machines such as slot machines or pachinko machines. Games are usually housed in cabinets.

Video games were introduced in amusement arcades in the late 1970s and were most popular during the golden age of arcade video games, the early 1980s.

A virtual reality game or VR game is a video game played on virtual reality (VR) hardware. Most VR games are based on player immersion, typically through a head-mounted display unit or headset with stereoscopic displays and one or more controllers.

The video game industry made early attempts at VR in the 1990s, most notably with Sega's VR-1 and Virtuality for arcades, along with unsuccessful attempts for home consoles with the Sega VR prototype and Nintendo's Virtual Boy. With the introduction of the first consumer-ready home VR product, the Oculus Rift, in 2013, home VR games soon followed, including existing games adapted for the VR hardware, and new games designed directly for VR. While VR hardware and games grew modestly for the remainder of the 2010s, Half-Life: Alyx, a full VR game developed by Valve and released in 2020, was considered the killer application for VR games.

The history of video games began in the 1950s and 1960s as computer scientists began designing simple games and simulations on minicomputers and mainframes. Spacewar! was developed by Massachusetts Institute of Technology (MIT) student hobbyists in 1962 as one of the first such games on a video display. The first consumer video game hardware was released in the early 1970s. The first home video game console was the Magnavox Odyssey, and the first arcade video games were Computer Space and Pong. After its home console conversions, numerous companies sprang up to capture Pong's success in both the arcade and the home by cloning the game, causing a series of boom and bust cycles due to oversaturation and lack of innovation.

By the mid-1970s, low-cost programmable microprocessors replaced the discrete transistor–transistor logic circuitry of early hardware, and the first ROM cartridge-based home consoles arrived, including the Atari Video Computer System (VCS). Coupled with rapid growth in the golden age of arcade video games, including Space Invaders and Pac-Man, the home console market also flourished. The 1983 video game crash in the United States was characterized by a flood of too many games, often of poor or cloned qualities, and the sector saw competition from inexpensive personal computers and new types of games being developed for them. The crash prompted Japan's video game industry to take leadership of the market, which had only suffered minor impacts from the crash. Nintendo released its Nintendo Entertainment System in the United States in 1985, helping to rebound the failing video games sector. The latter part of the 1980s and early 1990s included video games driven by improvements and standardization in personal computers and the console war competition between Nintendo and Sega as they fought for market share in the United States. The first major handheld video game consoles appeared in the 1990s, led by Nintendo's Game Boy platform.

The Nintendo Entertainment System (NES) is an 8-bit home video game console developed and marketed by Nintendo. It was released in Japan on July 15, 1983, as the Family Computer (Famicom), and released as the redesigned NES in test markets in the United States on October 18, 1985, followed by a nationwide launch on September 27, 1986. The NES was distributed in Europe, Australia, and parts of Asia throughout the 1980s under various names. As a third-generation console, it mainly competed with Sega's Master System.

Nintendo president Hiroshi Yamauchi called for a simple, cheap console that could run arcade games on cartridges. The Famicom was designed by Masayuki Uemura, with its controller design reused from Nintendo's portable Game & Watch hardware. The western NES model was designed by Lance Barr and Don James to resemble a video cassette recorder. To aid the console's acceptance in stores, Nintendo released add-ons such as the Zapper, a light gun for shooting games, and R.O.B., a toy robot.

Golden Axe (ゴールデンアックス, Gōruden Akkusu) is a series of side-scrolling beat 'em up arcade video games developed by Sega. The series takes place in a medieval fantasy world where several heroes have the task of recovering the legendary Golden Axe, the mainstay element of the series.

The Sega Genesis, known as the Mega Drive outside North America, is a 16-bit fourth generation home video game console developed and sold by Sega. It was Sega's third console and the successor to the Master System. Sega released it in 1988 in Japan as the Mega Drive, and in 1989 in North America as the Genesis. In 1990, it was distributed as the Mega Drive by Virgin Mastertronic in Europe, Ozisoft in Australasia, and Tectoy in Brazil. In South Korea, it was distributed by Samsung Electronics as the Super Gam*Boy and later the Super Aladdin Boy.

Designed by an R&D team supervised by Hideki Sato and Masami Ishikawa, the Genesis was adapted from Sega's System 16 arcade board, centered on a Motorola 68000 processor as the CPU, a Zilog Z80 as a sound controller, and a video system supporting hardware sprites, tiles, and scrolling. It plays a library of more than 900 games on ROM-based cartridges. Several add-ons were released, including a Power Base Converter to play Master System games. It was released in several different versions, some created by third parties. Sega created two network services to support the Genesis: Sega Meganet and Sega Channel.

Video games are a major industry in Japan, and the country is considered one of the most influential in video gaming. Japanese game development is often identified with the golden age of video games and the country is home to many notable video game companies such as Nintendo, Sega, Bandai Namco Entertainment, Taito, Konami, Square Enix, Capcom, NEC, SNK, Koei Tecmo, Atlus, Arc System Works, Sony and formerly its branch Sony Computer Entertainment. In 2022, Japan was the third largest video game market in the world after the United States and China.

The space is known for the catalogs of several major publishers, all of whom have competed in the video game console and video arcade markets at various points. Released in 1965, Periscope was a major arcade hit in Japan, preceding several decades of success in the arcade industry there. Nintendo, a former hanafuda playing card vendor, rose to prominence during the 1980s with the release of the home video game console called the Family Computer (Famicom), which became a major hit as the Nintendo Entertainment System (NES) internationally. Sony, already one of the world's largest electronics manufacturers, entered the market in 1994 with the Sony PlayStation, one of the first home consoles to feature 3D graphics, almost immediately establishing itself as a major publisher in the space. Shigeru Miyamoto remains internationally renowned as a "father of video gaming" and is the only game developer so far to receive Japan's highest civilian honor for artists, the 文化功労者 (bunka kōrōsha) or Person of Cultural Merit.