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16-Bit refers to the sprite style from the SNES system. It has a much larger ability to have multiple colours on screen, relative to the former 8-Bit style, which, as a result, allows a much better depth and shading to the sprite.

The Main Site uses 16-Bit to show events occuring in the present (sometime after Mega Man 7 but before Mega Man 8).

816and32bit

Comparing 8-Bit to 16-Bit to 32-Bit