I'm in the States, and over here..... yeah, the "crash" happened,
Already covered in issue 100 of Retro Gamer.
and the NES was EVERYTHING after that, to many gamers here.
Not until after '86. During '86, the NES, 7800, and soon to be released SMS were considered on equal ground and all three taken as a sign that there was a revival coming. It wasn't until after the national launch/Christmas '86 season (i.e. in '87) that the NES and Nintendo pulled far ahead.
To address some of the other comments here, there also seems to be this myth perpetuated by people not familiar with the particulars that it was an immediate revival in '85. The NES was only in a limited test market in New York in '85 and it didn't do that well. Likewise, SMB was only available at the end of the test marketing there, it was not a launch title. The NES fared a bit better at the LA test marketing in February '86, and slowly started expanding to more individual towns through that Spring. But it wasn't
No Amstrads, Spectrums, any of that stuff.
There was a full computer market at the time during the crash. The crash was specifically a consumer console industry crash, the computer industry is a completely separate industry and continued to survive. Most of what was the third party console industry jumped to doing computer industry titles during the '82-'84 crash (and the rest just went out of business). And yes, we had Spectrum over here as Timex/Sinclair.
Even Sega didnt have much presence until the Genesis (Mega Drive to most of you). The Master System barely existed here.
The Master System wound up coming up third in sales out of the three main consoles. A major part of the problem was because SEGA used toy company Tonka for it's marketing and distribution in the US, which is why when it came time to do the Megadrive/Genesis they approached Atari Corp. for the US release.