An enhanced model, the PC Engine SuperGrafx, was rushed to market in 1989. Īt least 17 distinct models of the console were made, including portable versions and those that integrated the CD-ROM add-on. In Europe the Japanese models were grey market imported, modified, and distributed in France and the United Kingdom beginning in 1988, but an official PAL model (named simply 'TurboGrafx' without the '16') planned for 1990 was cancelled following the disappointing North American launch with the already-manufactured stock of systems liquidated via mail-order retailers. However, the TurboGrafx-16 failed to break into the North American market and sold poorly, which has been blamed on the delayed release and inferior marketing. It gained strong third-party support and outsold the Famicom at its 1987 debut, eventually becoming the Super Famicom's main rival. In Japan, the PC Engine was very successful. The '16' in its North American name and the marketing of the console as a 16-bit platform despite having an 8-bit CPU was criticized by some as deceptive. Games were released on HuCard cartridges and later the CD-ROM optical format with the TurboGrafx-CD add-on. With dimensions of just 14 cm × 14 cm × 3.8 cm (5.5 in × 5.5 in × 1.5 in), the Japanese PC Engine is the smallest major home game console ever made. The GPUs are capable of displaying 482 colors simultaneously, out of 512.

The console has an 8-bit CPU and a dual 16-bit graphics processing unit (GPU) chipset consisting of a video display controller (VDC) and video color encoder. In Japan, the system was launched as a competitor to the Famicom, but the delayed United States release meant that it ended up competing with the Sega Genesis and later the Super NES. In Europe, the console is known as the PC Engine, after the Japanese model was imported and distributed in the United Kingdom and France from 1988. It was released in Japan in 1987 and in North America in 1989. It was the first console marketed in the fourth generation of game consoles, commonly known as the 16-bit era, though the console has an 8-bit central processing unit (CPU). The TurboGrafx-16, known as the PC Engine outside North America, is a fourth-generation home video game console designed by Hudson Soft and sold by NEC Home Electronics.

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