Clone console
From Sega Retro
A clone console or console clone, is usually an unlicensed reproduction of an officially branded video game console. They usually exist to fund the pirate trade in an attempt to gain money off the works of other companies.
Background
Clone consoles exist because popular video game manufacturers such as Sega or Nintendo were often slow to market their products in every region of the world. Traditionally a video game console is released in Japan first, then brought to North America, then to PAL regions such as Europe and Australia. But the world is much bigger than these regions, and it often takes months if not years for products to make it to smaller markets such as South America, Asia and Africa. Often the big companies decide against marketing their products in these places as they do not feel they can make a big enough return, or because piracy or various laws prevent them from doing so.
So often local companies take it upon themselves to bring the technology to these regions, and to do so they need to manufacture their own consoles, usually based on the design of their Japanese counterparts. Though it is not technically legal to produce consoles in this way, tracking and shutting down the manufacturers can be costly, especially if the companies effected aren't competing against them.
Pros
Piracy can produce some interesting results. Often clone consoles are not as restricted as official machines as they not region locked, so games imported from anywhere in the world can be played on the system. Unusual and sometimes better designs can also emerge from the pirate market, making a clone console often superior to the official system. On rare occasions, clone consoles are distributed with pirated video games, including mutli-carts and pirate originals that are occasionally better details than the real thing. For older consoles, there may be support for better picture technologies, such as AV instead of RF.
In some rare circumstances you can find clone consoles with more realistic light gun accessories. In the west, light guns are designed to look as unrealistic as possible so as not to promote gun crime, but these restrictions do not always apply to Asian countries. Clone consoles also often have the advantage of being much cheaper than their official rivals as they cost far less to manufacture.
Cons
On the other side of the fence, clone consoles tend to be of a cheaper and poorer build quality and often do not work as they should as a result. Cloned game controllers are often unusable, as response times may be too slow, buttons may get stuck or the whole thing may shatter due to weaker plastic. Handheld systems will sometimes have poor battery life or dodgy screens, and picture and sound quality may not be exact. There are often issues with more complex add-ons such as the Game Genie or Sega Mega CD, and some games may refuse to run.
Marketing Strategies
Some clone consoles have been freely advertised by the gaming press thanks to a lack of better alternatives, but having a high profile means the companies will be able to identify pirates quicker.
Often there are numerous revisions of the same console, though it is rarely to fix design failures. Pirates will often bend the truth to sell hardware. For example, a Sega Mega Drive may be repackaged in a Sega Dreamcast shell, tricking the customer into thinking he/she has purchased a cheap Dreamcast, when they have actually bought a much older sytem in disguise. Mario may be plastered on the side of a Sega console's box, despite there not being any Mario games for the system. False screenshots or features may also be added to the box as there are no laws to stop them doing so.
Response
Sega have attempted to shut down pirates in the past, but this is not always an easy task. With the aid of modern technology newer machines often have the ability to run downloaded ROMs, or have the games built-in to the console. Furthermore old patents have not been renewed, making way for a new generation of clones that don't need a license, such as the Yobo FC3 Plus and RetroN 3. The argument is often to simply track down those pirating current generation hardware, as there is little money to be made with older consoles anymore.