The PC Engine was a video game console released by NEC, a Japanese company, in 1987.
The PC Engine was a collaborative effort between Japanese software maker Hudson Soft (which maintains a chip-making division) and NEC. In a classic example of good timing, Hudson was looking for financial backing for a game console they had designed, and NEC was looking to get into the lucrative game market. The PC Engine was and is a very small video game console, due primarily to a very efficient three-chip architecture and its use of HuCards, credit-card sized data cartridges. It featured an enhanced MOS Technology 65C02 processor and a custom 16-bit graphics processor, as well as a custom video encoder chip, all designed by Hudson.
The PC Engine was extremely popular in Japan, besting Nintendo's Famicom in sales soon after its release, with no fewer than twelve systems released from 1987 to 1993. It was capable of up to 512 colors at once in several resolutions, and featured very robust sprite handling abilities. The Hudson-designed chroma encoder delivered a video signal more vibrant and colourful than both the Famicom and the Sega Megadrive and is largely regarded as the equal to Nintendo's Super Famicom, although that system was not released until 1990.
As graphics technology improved, gamers continued to stick to the PC Engine despite its shortcomings. Erotic games were a key factor in making the PC Engine popular, and this popularity was maintained far past the lifespan of a regular video game console. New games were released for the PC Engine up until 1999.
It was the first console to have a optional CD module, allowing the standard benefits of the CD medium: more storage, cheaper media costs, and redbook audio. The efficient design, backing of many of Japan's major software producers, and the additional CD ROM capabilities gave the PC Engine a very wide variety of software, with several hundred games for each the HuCard and CD formats.