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The_Liquid_Laser said:

PS3 is the clear choice for me.  It really did have a lot of great games in its library, and it also really did lose Sony a huge load of money.

Runner up goes to Colecovision.  There was supposed to be a distinct generation of consoles while the market was crashing which included Colecovision, Atari 5200 and Vectrex.  However, everyone expected Atari 5200 to be the successful console and it was a total turd.  Atari had a console successor much like the Wii -> Wii U situation.  Colecovision should have been the new market leader, but since video game consoles were such a new business, retailers panicked and just wanted to get rid of all of them.  Colecovision never got the chance it deserved. (I guess that also makes it kind of like the Dreamcast.)

Ah, another connoisseur of Colecovision, I see.

Colecovision is my choice for this, it was built on premise "play arcade games at home", delivered that, and came bundled with great port of Donkey Kong (which Coleco secured exclusive rights for). It was true beginning of 3rd generation (for doubters, SEGA SG1000 is considered Gen 3, and that has pretty much the same hardware as Colecovision, while launching a year after Colecovision, along with Famicom, which was greatly influenced by Colecovision). It had great initial success (which really worried Atari), but what killed it is its own company - yes, there was a NA video market crash, but Colecovision was doing quite fine - that is, if Coleco didn't bet on the wrong horse and funneled all their resources (and Colecovision parts) into home computers (seeing success of C64), with ADAM then releasing and being a massive flop, Oh, and that fucking Cabagge Patch Kids dolls, which were indeed massive success for them for a while - COLECO was, after all, COnnecticut LEather COmpany (it is a bit more complicated, but in the nutshell).

Market might've been quite different by the 1985, when Nintendo decided to dip their toes into NA home console market, if Coleco didn't kill its own console.