The Atari Lynx. I guess technically it was a portable, and not a console, but still. It had 16 bit color graphics, when the major home console was the NES. Technically it blew the game boy out of the water, but alas, it was made by Atari and had very few third-party game support. But there were still some good games for it, such as California Games, Battlezone 2000, Ninja Gaiden and Gauntlet.