Now, the History goes way back to the begining with the Atari 2600, the very first console to perform the first commercial video games.
Then of course, we jump forward a bit to let's say the Xbox 360 or the Playstation 3 (PS3). You can see very obviously that it upgraded... A LOT! When it comes to the physical features to the inside with a better processor and GPU or Graphics Card.
Video games have been around since the early 1970s. The first commercial arcade video game, Computer Space by Nutting Associates, was introduced in 1971. In 1972, Atari introduced Pong to the arcades. An interesting item to note is that Atari was formed by Nolan Bushnell, the man who developed Computer Space.