When you pulled the trigger it flashed the screen. The target would flash white, everything else flashed black. That told the gun whether it was facing a target or not. Changing how the targets blink would tell the gun which type of thing it was pointing towards.
Light guns for later consoles were a bit more sophisticated. It would collect data from an entire frame, and see when the light from the tv scan for the frame would cross in front of its sensor. Once it detected that, it would tell the console where in the frame it was detecting, which the console would then used to determine where you were pointing. This allowed it to work without flashing the screen.
This doesn’t work with non-CRT displays, however, and so it’s obsolete, which is why it was replaced with motion-detection.
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