
Release: 1989
In 1987, Epyx, a computer software company started work on 'Handy', a full-colour handheld game system. Due to a low budget, the Handy rights were sold to Atari.
Atari relased it as the Lynx. The Lynx featured 4,096 colours and multiplayer capabilities. Lynx players can link their systems together. The Lynx has an 8-bit processor and a 16-bit graphics chip, displaying the best handheld graphics of the time on a 3.5 inch LCD screen.
The Lynx was designed with comfort in mind. Left or right handed players can play with their most comfortable position. The Lynx screen can be displayed upside-down and the joypad be used by the right hand instead of the left.
So why is the Lynx so rare, while the less flashy Game Boy is still on shelves today? Well one problem compared to the Game Boy is power usage. 6 AA batteries power the Lynx for about four and a half hours. 4 AA batteries power the Game Boy for 35 hours. While an AC adapter can be used, that kinda takes away the whole point of 'portable'.
Atari repackaged the Lynx into smaller casing. They programed the screen to shut off while the game is paused, and the headphone jack was made to output stereo sound. The Lynx II (below) was released in hopes of keeping the system afloat, but was never able to grasp the market.

AC Adaptor to save your precious batteries, and the Lynx II upgrade. (See above.)