Was there a war? It was pretty much Atari, Nintendo, Nintendo, Nintendo and Sega... then a whitewash of Sony.
Anyone have a Magnavox as a kid? (Raises hand)... my first home console predated 8-bit. It was awesome. Black and White awesome. Sadly... burned in a fire.
The bit wars were awesome. Every four or five years or so, we'd upgrade consoles. We went through a hell of a lot of them... (as kids, us cousins lived close to each other... and often spent the weekend at the house of whoever had the newest system)... the Magnavox, three or four Ataris, the Colecovision (one of the best of its time), the Commodore 64, a bunch of early Apples (for Lode Runner, Quetzlcoatl, DigDug and other cool stuff), the Nintendo Famicom and the NES (we even had cartridge swappers for both systems, so we could bring games over to each others' houses)... the Sega Genesis, the Super NES... fun times... fun times...
SEGA was great... but they didn't have the marketing clout of Nintendo. Shame. The SEGA systems always had better ergonomics, great games (their fighters and platformers were superior, IMHO... only the Mario series was overwhelmingly better than Sega's offerings) and good design.
It's just Nintendo had great marketing clout, both with gamers and developers... something, I think, that Sony later learned from with the Playstation... build a lot of them, offer a ton of games, and the sales will come.