In the end of Avengers Disassembled, Wanda was taken by Magneto to the island of Genosha. Unfortunately not even Charles Xavier could help her constantly degenerating mind from losing touch with reality. Eventually the New Avengers and the X-Men decided to go to Genosha and decide the fate of Scarlet Witch (Wanda Maximoff). Once they arrived, they found no-one there. Suddenly a bright light engulfed the world, and they were in a new one.
In this world, Magneto was attacked by Sentinels over Manhattan in 1979 (taking advantage of Marvel's sliding timescale policy, there are no heroes active in the 1970s). At the end of the attack, Magneto revealed an alleged international anti-mutant conspiracy involving Richard M. Nixon. The main result of this was that Magneto was granted sovereignty of the island of Genosha as the leader of the world's mutants. Another result was that the protection of mutant life was judged to be the foremost of all laws (as a result, stem cell research on mutant embryos is illegal, but stem cell research on altered human embryos is permitted). Because of this, the world is a racist society, with mutants controlling governments, businesses and culture, and Humans (or "Sapiens") are looked down on as inferior. (essentially a reversal of the current status quo, where mutants are looked down on and despised instead).
Some exceptions apply to sapiens that live with privileges like Carol Danvers (Ms. Marvel) and Spider-Man. However, while Carol Danvers is widely known to be a sapien, Spider-Man is believed by the House of M world at large to be a mutant.
The House of M has created some serious consequences in the Marvel Universe. The greatest so far is the reduction of the mutant population from millions to hundreds. Fan reaction to these changes has been mixed. Some fans thought the previous reality, in which millions of super-powered mutants existed and lived as outcasts, was far-fetched and not as enjoyable as previously stated scenarios. Others criticized the fact that, despite the fact that 91.4% of the mutant population had been "depowered," few popular, marketable characters lost their abilities. Only two current members of the X-Men (Polaris, Professor X) suffered this fate, although the X-Men's main villain Magneto has lost his abilities as well.
Other consequences include the disappearance of Charles Xavier (only until he returned in Deadly Genesis without his powers), Scarlet Witch, and Quicksilver, and Wolverine's total recall of his past, which will cause a serious change in his status. Quicksilver's disappearance will be dealt with in the Son of M. Though not explicitly expressed in the House of M series, Bendis has stated in an interview with Newsarama that Hawkeye has been revived in the Marvel Universe.The Collective, a new villain that defeated the Canadian superhero team Alpha Flight, was created as a result of the Decimation event. The Collective was apparently formed from all of the mutant energies displaced by Wanda's actions...
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- http://www.marvel.com/universe/House of M %28Earth-58163%29