In the history of video games, the fourth generation of game consoles, more commonly referred to as the 16-bit era, began on October 30, 1987, with the Japanese release of NEC Home Electronics' PC Engine (known as the TurboGrafx-16 in North America). Although NEC released the first console of this era, sales were mostly dominated by the rivalry between Sega and Nintendo across most markets: the Sega Mega Drive (Sega Genesis in North America) and the Super Nintendo Entertainment System (SNES; Super Famicom in Japan). Cartridge-based handheld consoles became prominent during this time, such as the Nintendo Game Boy (1989), Atari Lynx (1989), Sega Game Gear (1990) and NEC TurboExpress (1990).

Nintendo was able to capitalize on its success in the previous, third generation, and managed to win the largest worldwide market share in the fourth generation as well. Sega, however, was extremely successful in this generation and began a new franchise, Sonic the Hedgehog, to compete with Nintendo's Super Mario series of games. Several other companies released consoles in this generation, but none of them were widely successful. Nevertheless, there were other companies that started to take notice of the maturing video game industry and begin making plans to release consoles of their own in the future. While as with prior generations, game media still continued to be primarily provided on ROM cartridges, though the first optical disk systems, such as the Philips CD-i, were released to limited success. As games became more complex, concerns over video game violence, namely in titles such as Mortal Kombat and Night Trap, led to the eventual creation of the Entertainment Software Rating Board.

The emergence of fifth generation video game consoles, circa 1994, did not significantly diminish the popularity of fourth generation consoles for a few years. In 1996, however, there was a major drop in sales of hardware from this generation and a dwindling number of software publishers supporting fourth generation systems, which together led to a drop in software sales in subsequent years. This generation ended with the discontinuation of the Neo Geo in 2004.

NEC Corporation (日本電気株式会社, Nippon Denki Kabushiki-gaisha) is a Japanese multinational information technology and electronics corporation, headquartered in Minato, Tokyo. The company was known as the Nippon Electric Company, Limited, before rebranding in 1983 as NEC. It provides IT and network solutions, including cloud computing, artificial intelligence (AI), Internet of things (IoT) platform, and telecommunications equipment and software, to business enterprises, communications services providers and to government agencies, and has also been the biggest PC vendor in Japan since the 1980s, when it launched the PC-8000 series.

NEC was the world's fourth-largest PC manufacturer by 1990. Its semiconductors business unit was the world's largest semiconductor company by annual revenue from 1985 to 1992, the second largest in 1995, one of the top three in 2000, and one of the top 10 in 2006. NEC spun off its semiconductor business to Renesas Electronics and Elpida Memory. Once Japan's major electronics company, NEC has largely withdrawn from manufacturing since the beginning of the 21st century.

NEC was #463 on the 2017 Fortune 500 list. NEC is a member of the Sumitomo Group.