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Video game crash of 1983
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<p>The video game crash of 1983 (known in <a href="/facts/Japan/U5mz0SRT">Japan</a> as the Atari shock) was a large-scale <a href="/facts/Recession/ncYpUqmr">recession</a> in the <a href="/facts/Video_game_industry/3hucMmbw">video game industry</a> that occurred from 1983 to 1985 in the <a href="/facts/United_States/P0sCdLe5">United States</a>. The crash was attributed to several factors, including <a href="/facts/Market_saturation/KgggsFEo">market saturation</a> in the number of <a href="/facts/Video_game_consoles/K72D1NSS">video game consoles</a> and available games, many of which <a href="/facts/Shovelware/3u90v9Ra">were of poor quality</a>. Waning interest in <a href="/facts/Console_games/3RoDIJPA">console games</a> in favor of <a href="/facts/Personal_computer/koaYfNce">personal computers</a> also played a role. Home video game revenue peaked at around $3.2 billion in 1983, then fell to around $100 million by 1985 (a drop of almost 97 percent). The crash abruptly ended what is retrospectively considered the <a href="/facts/Second_generation_of_console_video_gaming/98kebVIk">second generation of console video gaming</a> in North America. To a lesser extent, the <a href="/facts/Arcade_video_game/dCRltFVF">arcade video game</a> market also weakened as the <a href="/facts/Golden_age_of_arcade_video_games/NszLJ8au">golden age of arcade video games</a> came to an end. </p><p>Lasting about two years, the crash shook a then-booming video game industry and led to the bankruptcy of several companies producing <a href="/facts/Home_computer/CDEPVd1T">home computers</a> and video game consoles. Analysts of the time expressed doubts about the long-term viability of video game consoles and software. </p><p>The North American video game console industry recovered a few years later, mostly due to the widespread success of Nintendo's Western branding for its <a href="/facts/Famicom/YD59GCQQ">Famicom</a> console, the <a href="/facts/Nintendo_Entertainment_System/YD59GCQQ">Nintendo Entertainment System</a> (NES), released in October 1985. The NES was designed to avoid the missteps that caused the 1983 crash and the stigma associated with video games at that time. </p>