Complex sentence: These sprites however were more limited than those in (for example) the Atari-8bit systems, because in their highest resolution, they were only 16x16 pixels, and in a single-color (with transparency).
Split into simpler sentences: These sprites however were more limited than those in (for example) the Atari-8-bit systems. Because in their highest resolution they were only 16x16 pixels in a single-color (with transparency).