The Sony Dreamcast Console is the same generation as the XBox, PS2, and GameCube. It first came out in 1999. It was discontinued and can now be found for very little money!
The unit itself is very small - barely larger than a CD - and quite portable. It's a light grey cube, and within that is packed a 200 MHz system running a modified version of Windows CE. It's got 16mb memory and a built in modem.
The memory cards insert into the controllers and have a LCD screen to show you information and in some cases even let you have a secondary screen. The controller is a bit on the large and clunky side, but you get used to it soon enough. The Dreamcast console comes with four ports, so as soon as you buy yourself some extra controllers you're ready for four person gaming.
You can easily find old Dreamcast systems at most gaming stores in their used area, or on ebay. The games for the Dreamcast are quite enjoyable in general, and are usually far less expensive than a similar game for the comprable console systems.
While the Dreamcast can't play DVDs, it can play audio CDs, so it can even serve as a small stereo system for your TV room!
With the system having been discontinued in 2002, now is the time to buy up a console (under $40 in most places!) and a bunch of games. Enjoy!
Buy Dreamcast from Amazon.com