In reference to gaming systems, it’s talking about the generation of gaming systems. The systems with 8-bit CPUs didn’t have much *memory*, so they had memory-saving tricks like making the game-world out of repeating tiles, not putting many colours on the screen at once, and so on. They could’ve made 8-bit systems with lots of memory, but when memory got cheaper, there were 16-bit CPUs and they upgraded the CPUs as well. That’s why 8-bit systems are ones without much memory.
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