The fifth generation (ca 1993–2003) marks one of the biggest shifts in gaming history: the transition from 2D to 3D. With CD-ROM as standard, games could suddenly include cinematic cutscenes, voice acting and much larger worlds. This was when games began to become truly "cinematic" – with titles like Final Fantasy VII and Metal Gear Solid blurring the line between film and game.

Local couch multiplayer became enormously popular, especially on Nintendo 64, while PC games laid the groundwork for today's online worlds through online services, modding and communities. Arcades began to lose ground as consoles grew more powerful, and franchises like Pokémon, Resident Evil and Grand Theft Auto redefined what games could be.