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The video game crash of 1983 (known in Japan as the Atari shock) [1] was a large-scale recession in the video game industry that occurred from 1983 to 1985 in the United States. The crash was attributed to several factors, including market saturation in the number of video game consoles and available games, many of which were of poor quality.
- Weak Profits Sent Shockwaves Through The Industry. In the first quarter of 1983, Atari’s then-chairman Raymond Kassar announced that Atari, which had anticipated a profit margin of 50% on their 1982 sales, had only achieved a margin of 10%.
- Yes, E.T. And Pac-Man Had An Effect. Gaming history holds that the worst video games ever made were E.T. and Pac-Man for the Atari 2600. Rushed through incredibly short development cycles to make the Christmas shopping season, these two games were the emblems of everything wrong with the pre-crash industry.
- Video Game Storytelling Was Still Primitive. The popular video games in 1982 were much the same that they had been as early as 1975: Simple single-screen games that could be played in a handful of minutes and had no real narrative or purpose in playing other than to get a high score.
- Video Game Technology Had Not Evolved. In 1982, no video game consoles other than the still-in-development Nintendo Family Computer had hardware support for scrolling.
Nov 19, 2023 · But in 1983, the bottom fell out of the video game business in spectacular fashion. This infamous crash saw revenues plummet by 97% in just two years, companies go bankrupt, and the future of video gaming in serious jeopardy.
- The 1970s -1982: The Rise of Gaming Consoles...
- 1980-1982: ...And Their Fall
- What Developers Learned from The Crash
The first generation of consoles, led by the 1972 Magnavox Odyssey, were crude by today's standards, containing a fixed library of games illuminated on TVs using simple light dots and decorative screen overlays; all the same, they pioneered a whole new field of home entertainment. The second generation of video games consoles grew alongside their c...
The first factor behind the 1983 Video Game Console Crash was the sheer glut of consoles on the market. In a sort of digital tragedy of the commons, the Atari, Intellivision, Astrocadeand other consoles were all competing for the public eye, dividing customer interest. A lack of cross-console titles also kept individual video games from standing ou...
A few companies like Atari managed to stay in business, but the Crash dealt it and competitors a severe blow. After the disappointing release of the Atari Jaguar in 1993, Atari left the console market (returning only recently with their Atari VCS entertainment system). American developers generally turned their attention to making games for the gro...
Jul 30, 2023 · What caused the video game crash of 1983? There are many factors, but the ones most commonly associated with the crash are an oversaturation of both games and available consoles along with poor quality games that were too buggy to play.
May 26, 2024 · One of the primary factors behind the 1983 crash was the oversaturation of the video game market. By 1983, there were dozens of home consoles available, each with its own library of games.
Mar 27, 2023 · If it wasn't for Nintendo coming out with an innovative solution, the gaming industry as we know it wouldn't have survived. The video game crash of 1983 actually looked rather similar to the streaming wars that are taking place today. Read by Dr. One.