third genertaion
During the era, the Famicom (short for family computer) became very popular in Japan. The Famicom's American counterpart, the Nintendo Entertainment System, highly dominated the gaming market in North America, thanks in part to its restrictive licensing agreements with developers. Though the NES dominated the market, the Sega Master System (which was popular in Brazil and Europe), and the Atari 7800, were also major players during this era. The Sharp X68000 began its niche run in Japan with its first iteration in 1987.

Super Mario Bros.
The latter part of the third generation (argued by some as part of the 4th generation) introduced the Game Boy, which singlehandedly gelled and proceded to dominate the previously scattered handheld market for 15 years until the release of the 7th generation Sony PSP. While the Game Boy product line has been incrementally updated every few years, until the Game Boy Micro and Nintendo DS, and partially the Game Boy Color, all Game Boy products were backwards compatible with the original released in 1989.
The post-crash 8-bit era saw the first console role-playing video games, and was the birth of the side-scroller. Editing and censorship of video games was often used in localizing Japanese games to North America. It is the era when many famous video game series, and the characters starring in them, originated. Some notable examples include Super Mario Bros., The Legend of Zelda, Dragon Quest, Metroid, Mega Man, Metal Gear, Castlevania, Final Fantasy, Phantasy Star and Bomberman.
This generation is often mislabeled as the "First Generation" as it is the start of video gaming as it is today (although the grouping of generations is arbitrary).