Archived from groups: rec.games.video.classic (
More info?)
I think if there were no crash, you would see Sega's Mark III being
sold by Coleco (provided Coleco didn't go thru with the Adam, which
would still sink the company in the ATL), Magnavox (not Mattel) selling
the Famicom (maybe as the Odyssey-8), and Atari selling the 7800. Then
Atari would introduce the 16-bit Amiga gaming system around 1987 or
1988 (and the success would give Jay Miner a high-ranking executive
title at Atari). Sega would assume all manufacturing and marketing
responsibilities in 1989 with the Genesis (perhaps in the ATL it would
be called either the Sega MegaDrive or the Sega Mega-16), and Nintendo
buying the rights to the Odyssey name and library and going alone with
the Super Famicom (which they call the Super Odyssey-16). Later in 1989
Atari and Nintendo introduce handheld systems as they did in RL. In the
ATL, the Lynx still has a color screen and runs for a few hours on 6 AA
batteries, and the Gameboy still has a monochrome screen and runs for
20 hours on 4 AA batteries, and Nintendo still outsells the Lynx.
Magnavox would make one last stab with the CDI system, but it would be
an even bigger flop in the ATL, and it bankrupts the entire Magnavox
company (Sony buys Magnavox for a couple billion). Then around 1991
Atari would upgrade the Amiga game system to 32-bit with the Amiga32
(not only as a new system but also allow consumers to send in their
16-bit Amigas to be factory-upgraded to the 32-bit chipset), but
chances are that the mods are botched and Atari suffers losses (thanks
to lost sales and lawsuits over the botched mods...Atari stops all home
console manufacturing and relies on software sales for a while...but
lack of hardware sales causes Atari to lose their market
share...Nintendo and Sega are now on top with 45% each and Atari having
the last 10%). Around 1996, Atari gets back in the game with a new
version of the Lynx which still has color graphics but with updated
32-bit 3D graphics and sound capabilities, and the system runs for 18
hours on 2 AA batteries...the Lynx3 outsells the Gameboy, and Nintendo
is forced to design a 32-bit color system. However, they can't agree on
a common design, so they decide to develop for the original Gameboy
until 1997, cease all Gameboy software/hardware
development/publishment, and agree to become a 3rd-party
publisher/developer for the Lynx 3D. The hottest titles on the Lynx 3D
become Tempest 2000, John Madden Realsports NFL Football, Mark McGwire
Realsports Major League Baseball, Michael Jordan Realsports NBA
Basketball, Tiger Woods Realsports PGA Golf, Realsports Major League
Soccer, Realsports Indoor Soccer, Pete Sampras Realsports WTA Tennis,
Mario Kart 3D, Atari Karts, Super Smash Bros., Super Mario 3D, Metroid
3D, and The Legend Of Zelda : The Ocarina Of Time. Atari also allows
Nintendo to make games based on Atari games which include Nintendo
characters...Mario Pong, Luigi Vs The Millipede, Realsports Tennis 3D
(including Atari and Nintendo characters), Realsports Golf 3D
(including Atari and Nintendo characters), Realsports Volleyball (with
Atari and Nintendo characters), Realsports Boxing (with Atari and
Nintendo characters), Super Smash Bros. : Atari Vs Nintendo (with Atari
and Nintendo characters), Link's Adventure (Ganon brings in Yorgle,
Grindle, and Rhindle to kidnap Zelda and steal the Triforce...and yes,
the bat would be in the game), Wario Breakout, Mario Kart Vs Atari
Karts (all the Super Mario Kart characters plus Atari characters such
as Bentley Bear, Major Havoc, Trevor McFur, and included as hidden
characters would be Shigeru Miyamoto and Nolan Bushnell), and Starfox :
Qotile Assault). Then Microsoft would ask Atari to sell the
XBox...Atari would call it the Atari X.
BTW, Nintendo would still sell the Gamecube and N64, but poor sales of
the Gamecube would convince Nintendo to stop with hardware development
and concentrate on software development...Nintendo would be an
exclusive 3rd-party developer/publisher for the Atari X and the LynX
(next gen Lynx which would hook up to the Atari X). Sony would still
have strong sales with the PSO [PlayStation Odyssey] and the PS2...the
PSP would be a major threat to the Atari LynX. Sega would still fail
with the SegaCD, 32X, and Saturn...they would have moderate success for
a while with the Dreamcast but the DC would still end up failing, and
Sega ends up being an exclusive 3rd-party publisher/developer for
Sony's systems.