8 Handheld Consoles That Competed With Nintendo and How Each One Fared

2. Atari Lynx (1989) - The Graphics Powerhouse

The Atari Lynx holds the distinction of being the first handheld console with a color LCD screen, predating even Sega's Game Gear by several months, yet it remains one of gaming's most tragic "what if" stories. Developed by Epyx and later acquired by Atari, the Lynx was a technological marvel that featured capabilities far beyond its contemporaries, including hardware-accelerated graphics, ambidextrous design for left-handed players, and networking capabilities that allowed up to 17 units to connect for multiplayer gaming. The system's custom chips could produce smooth scaling, rotation, and sprite manipulation effects that wouldn't be seen on other handhelds for years. Games like "Blue Lightning," "California Games," and "Klax" demonstrated the system's impressive visual capabilities, while "Slime World" showcased its networking features in ways that predicted modern portable gaming trends. Despite these innovations, the Lynx suffered from critical marketing and business decisions that doomed it to commercial failure. Atari's financial troubles during the late 1980s meant limited marketing budgets and inconsistent retail presence. The system was also significantly larger and heavier than the Game Boy, making it less portable despite being a portable console. Most damaging was the limited software library – while the Lynx had quality games, it lacked the quantity and recognizable franchises that drove Game Boy sales. The system sold approximately 3 million units before being discontinued in 1995, leaving behind a legacy as perhaps the most technically advanced handheld of its generation that never found its audience.