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Typically a graphical style where there are one two colors. (A bit can be either on or off, so two options) Commonly black and white, but can be any combination depending on the style the creator is trying to accomplish. 

Projects inspired by the 16 bit console generation from the late 80s and early 90s. Including the consoles Super Nintendo, Sega Genesis, and PC Engine/TurboGrafx-16.

Sprites are generally 2D images used in games to represent objects. They can be animated or static, and come in different styles like isometric or top-down.