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Lots of fun what if's there. It's fascinating to think of the ColecoVision weathering the crash and competing with the NES.
The ColecoVision was easily capable of competing with the early stuff from Nintendo, save maybe for Super Mario Bros., but it would have run into serious issues by 1987. Of course, by then, a ColecoVision 2 could have been released, perhaps similar to the MSX2 computer spec, which came out in 1986. The big issue that the ColecoVision had was lack of RAM - it only had 1K - something that the Adam addressed with a full 64K, and poor scrolling, something the NES/Famicom specialized in.
There were actually two consoles that weathered the crash, the Atari 2600 and Intellivision, though particularly the latter never with the same presence as it had pre-crash due in part to no longer being run by Mattel. New games never stopped being made for either, and both had new consoles produced into the early 90s. Post crash both were pushed as budget alternatives to the other consoles.
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