Same graphic quality, same sound quality, but color? oh, man!
The Gameboy Color is literally just a Gameboy with a color display. It doesn't even have a backlight, so you still need to hold it in the light to see what you're doing. It has just about as many different versions as the Gameboy, and all of them have the same problem.
The Gameboy Color, as previously stated, is identical to the Gameboy in every way, except for the fact that this one outputs in color and was released in 1998, nine years later. You can play any Gameboy game in semi-color on the Gameboy Color, only semi-color, as it just gives it a slight palette, with not really much different otherwise. You can also play a fair amount of Gameboy Color games in black and white on the Gameboy, and if it's a game like Link's Awakening DX, can break a certain DX-version-exclusive dungeon that relies on color output.
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The Gameboy Color only exists because it would have been too expensive to create a color handheld system in 1989. As soon as the technology became affordable, they created it. Of course, it would be pointless, as less than five years later, Nintendo would release the Gameboy Advance, the magnum opus of the Gameboy line of systems.