introduced on the market, such as Mattel Auto Race in 1977 and Simon in 1978. While not considered video games as lacking the typical video screen element, instead using LED lights as game indicators, they still established a market for portable video games. The first handheld game console emerged during the second home console generation, using simple LC displays. Early attempts at cartridge-based handheld systems included the Microvision by Milton-Bradley and the Epoch Game Pocket Computer, but neither gained significant traction. Nintendo, on the other hand, introduced its line of Game & Watch portable games, each with a single dedicated game, as its first venture into the video game market. First introduced in 1980, the Game & Watch series ran for over a decade and sold more than 40 million units. Third generation (1983–2003) Frequently called the "8-bit generation", the third generation's consoles used 8-bit processors, five audio channels, and more advanced graphics capability including sprites and tiles instead of block-based graphics of the second generation. Further, the third console saw the market dominance shift from the United States to Japan as a result of the 1983 crash. Both the Sega SG-1000 and the Nintendo Nintendo Entertainment System launched near simultaneously in Japan in 1983. The Famicom, after some initial technical recalls, soon gained traction and became the best selling console in Japan by the end of 1984. By that point Nintendo wanted to bring the console to North America but recognized the faults that the video game crash had caused. It took several steps to redesign the console to make it look less like a game console and rebranded it as the "Nintendo Entertainment System" (NES) for North America to avoid the "video game" label stigma. The company also wanted to avoid the loss of publishing control that had occurred both in North America as well as in Asia after the Famicom's release, and created a lockout system that required all game cartridges to be manufactured by Nintendo to include a special chip. If this chip was not present, the console would fail to play the game. This further gave Nintendo direct control on the titles published for the system, rejecting those it felt were too mature. The NES launched in North America in 1985, and helped to revitalize the video game market there. Sega attempted to compete with the NES with its own Sega Master System, released later