Sorry to step on your applause line,
Doubtful! You've always cheerfully enjoyed stepping on them in the past!
when you go from systems like the Intellivision or the Atari 5200 which had 12+ buttons and either a 32-direction disc or an analog joystick, and you’re playing things like an early RTS game that made full use of the keypad, and driving games with finer-grained control, and then suddenly the entire market moves to 8-direction D-pads and only 2 or 3 buttons for the next decade or more, it’s kind of a slap in the face. And we were stuck there with only incremental improvements for 2 full console generations, thanks to Nintendo.
The collapse of Intellivision and Atari has nothing at all to do with Nintendo - they brought it upon themselves. The Atari 5200 that you mention - which was a great system for the time, absolutely - sold a million copies and was discontinued within 2 years of release. The $269 retail price had a lot to do with that ($670 today), of course. They also spent a ton of money developing games that were quickly and easily pirated or just were terrible. You can be as advanced as you want, but if nobody buys you, then were you really advanced? An unused video game system doesn't convince the powers that be that 16 buttons and 32 directions are worthwhile.
Besides, while all this was happening, people who were willing to spend that kind of money were able to get the best gaming system available: the PC, where game development proceeded apace. The NES-Super NES era lasted 11 years (approximately) and during that period of time, the PC was hammering out classic after classic. Wolfenstein 3D. Doom. Civilization. Sim City. Myst. It's not like technological video game development stagnated during this time, far from it. In fact, everything you talked about kept happening, just on the PC, and it is the 80s and early 90s where serious PC gamer culture starts to form.
And while we're at it, let's get the button issue straight. The NES had a 8 direction pad and 4 buttons. The SMS originally had a similar direction pad and 2 buttons. Why? Because the Atari 5200
failed. Intellivision
failed. Complex controller configurations had been tested by the market and not succeeded. By 1990 they had moved up to 8 directions/8 buttons. This clearly followed a gentle evolution from the Atari 2600 controller, which is a joystick and a button.
Atop that, you're forgetting the number one reason why people liked the Nintendo. In the space of 2 years, it went from this:
To this:
Oh, the 5200 had better graphics, but nowhere near as good as the NES/SMS. I remember growing up around people who had switched from Coleicovision/Intellivision/Atari to NES/SMS and very few people in 1988 were pining for 16 buttons. They loved the way the games looked and sounded (don't forget the audio capacity of NES/SMS is much better as well) and played and felt intuitive. The only complaint I recall about the NES was the controller being uncomfortably square. The NES was affordable, but Nintendo always has understood that a good game doesn't need to be a complex game. It just needs to make people playing it smile. Which is why Atari sold a million 5200s (and less 7800s, from what I can find), and Nintendo sold...61 million NES consoles.
So, let's be clear here - video game technologies continued to develop on the PC, producing massive blockbusters that remain hugely influential to this day, and would later encourage console developers to work in concert with the PC to ensure that they don't miss on killer apps. The Nintendo and Sega systems of the 80s and 90s greatly contributed to the concept of video games as an art form - if they aren't as focused on complexity of play, they are instead more focused on capturing vibrant colours and clear sounds and packaging it into an affordable set, and building stronger aesthetics into the console form. I think it's pretty clear that if you don't have Nintendo, you don't get the PS1 in the form that it is, straddling the two lines. Almost like Nintendo paid Sony to devise a CD-based console for Nintendo games, but then broke off the relationship... ...
They were also primarily responsible for gaming being treated as a children’s pursuit for as long as it was. Prior to the NES, arcade and home gaming had a broader-based audience, but the intentional simplicity and kid-friendliness of Nintendo’s offerings created a public perception that didn’t start to be shaken off until the Sega Genesis, and wasn’t fully shaken off until the Playstation 2.
This is pure nonsense. In the pre-video game crash era, video games were seen as a children's thing too. Children went to arcades and pumped money into Pac-Man. Children played Atari. Regretfully I can't find any easy statistics on demographics, there's lots of anecdotes about it. There's a good one here:
"All the success I had in that tournament was just from the skill I had of the basic game. I never really went in expecting to win."
milwaukeerecord.com
Some adults. Mostly kids playing Pac-Man at that tournament.
The Playstation 2 didn't return gaming to an old height - it merged with the PC-style of adult gaming that had already emerged and made it more mainstream, and good on it! The PS2 is one of the greatest consoles of all time and deserves to be so celebrated. But this fantasy world where Nintendo doesn't exist and therefore Atari can make complex, more modern games in the 80s is just that - a fantasy world. Nintendo didn't snuff out the competition, the competition
snuffed itself out and Nintendo showed up with something that people wanted in bigger numbers than they ever wanted the pre-crash systems.
Don’t get me wrong, Nintendo makes well-crafted first party games for their target audience.
Yes, they do. They also make great games across the board.
The Legend of Zelda and
Super Mario Brothers are two of the most important, influential, and best selling franchises in history. Nintendo makes the most popular JRPG of all time,
Pokemon. The
Donkey Kong Country games in the mid 90s inspired a generation of polygonal games on the PS and N64 (most of which looked like garbage compared to DKC).
Animal Crossing can hardly be considered a party game, it's a simulation that has taken the world by storm in a time where party games are almost impossible. What about
Tetris, the killer app that made mobile gaming a thing? Don't tell me Nintendo is just Smash, Party, and Kart.
But they’ve also done their fair share of damage over the years.
In the limited spectrum of you wanting a PS2 to be developed years earlier, sure. But the reality is this - Nintendo saved the console industry. The Video Game Crash of 1983 was catastrophic. Video game revenues declined 97% year over year from '83 to '84. Major US players went bankrupt. Companies looking at consoles bailed. Activision did exactly what I described above: they jumped to PCs, and I'm not sure, anyone hear from them how that went? Did they do ok on the PC? Speaking of the PC, 1984 was the year it took off, because people wanted something that they couldn't get from console, which presumably allowed for Activision to at least make two or three more games. As for Atari itself...well, it died too. It died in 1984, even before the Nintendo could launch their Famicon in North America. It was sold for parts, and while Atari eventually came back as a brand, it was never really the same. It died in a desert of its own creation before Nintendo could irrigate the once fertile of consoles and bring it back to life. Nowadays, Atari is a video game publisher...for PC games, while Nintendo is one of the largest businesses in the world.