era or generation. Later console generations are based on groupings of release dates rather than common hardware as base hardware configurations between consoles have greatly diverged, generally following trends in generation definition given by video game and mainstream journalism. Handheld consoles and other gaming systems and innovations are frequently grouped within the release years associated with the home console generations; for example the growth of digital distribution is associated with the seventh generation. Console history timeline by generation The development of video game consoles primarily follows the history of video gaming in the North American and Japanese markets. Few other markets saw any significant console development on their own, such as in Europe where personal computers tended to be favored alongside imports of video game consoles. The video game clone in less-developed markets like China and Russia were not considered here. First generation (1972–1980) The first generation of home consoles were generally limited to dedicated consoles with just one or two games pre-built into the console hardware, with a limited means to alter gameplay factors. In the case of the Odyssey, while it did ship with "game cards", these did not have any programmed games on them but instead acted as jumpers to alter the existing circuitry pathway, and did not extend the capabilities of the console. Unlike most other future console generations, the first generation of consoles were typically built in limited runs rather than as an ongoing product line. The first home console was the Magnavox Odyssey in September 1972 based on Baer's "Brown Box" design. Originally built from discrete transistors, Magnavox transitioned to integrated circuit chips that were inexpensive, and developed a new line of consoles in the Odyssey series from 1975 to 1977. At the same, Atari had successfully launched Pong as an arcade game in 1972, and began work to make a home console version in late 1974, which they eventually partnered with Sears to the new home Pong console by the 1975 Christmas season. Pong several technology advantages over the Odyssey, including an internal sound chip and the ability to track score. Coleco developed the first Telstar console in 1976. With Magnavox, Atari and Coleco all vying in the console space by 1976 and further cost reductions in key processing chips from General Instruments, numerous third-party manufacturers entered the console market by 1977 with ball-and-paddle games. This led to market saturation by 1977, and