Really the war between Computer and Consoles began with the introduction of the Adam Computer.  At the time both platforms were relatively new and Coleco decided to merge them into one system and go public. It was the complete home office entertainment package.  When games first came out they had an adult rating.  Games like Smurfs and Donkey Kong were meant for adults only.  Quite the contrast.  Games could be played on both cartridges and data cassette tapes.  With poor sales across the board for all companies involved in the market, Coleco decided to duck out of the computer war games and focus on console gaming, with the Colecovision.  Atari followed suite and pushed the Atari 2600.  Eventually Coleco became Nintendo and Atari became Sega.  During this transition, computer gaming became a luxury for rich kids and Microsoft eventually took over.  The war raged and waged on, and Sega was losing out to Nintendo, that's when Sony, fundamentally the audio video department, got into the game, bought out Sega and pushed the Playstation.  Consoles became mainstream.  In a bid to not get bought out by Sony, Microsoft releases the direct link XBox.  And as they, say "the rest is history."  Now there is only Nintendo, essentially Disney, Sony, and Microsoft.