Hello Sinclair ZX Spectrum 128 - Launched in the UK in January. It came with an extra 80Kb memory, a three channel sound chip and an external heat sink that helped keep your tea warm. Sadly it was too little, too late....
Goodbye Sinclair Research - In April the Sinclair brand name and computer range is sold to Amstrad.
Hello Sinclair Spectrum +2 - The first 'Spectrum' to be released by Amstrad. Essentially a Sinclair Spectrum 128 in an Amstrad CPC style case with built in joystick ports and cassette deck.
Hello Sega Master System - Released in North America in June. It was completely overshadowed by the NES.
Hello Nintendo NES (again) - Released in Europe in October. It did not fare nearly as well as it did in the US. It was outsold not only by the Atari ST and Commodore Amiga, but ultimately also by the Sega Master System (which was released in Europe in '87).
Looking through my shortlist of games for 1986 I've either played or not heard of most of them. The only one I haven't played that really stands out is Pentragram* by Ultimate Play The Game. I'm looking forward to playing Uridium and Tau Ceti again to see if they are still as good as I remember.
1986 looks like another year dominated by 8-bit home computer releases with the occasional 8-bit console and 16-bit computer games starting to creep in.
*I've since played Pentagram and didn't enjoy it. It plays like a combination of Knightlore (good) and Nightshade/Gunfright (bad).