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What caused the video game crash of 1983?
Video game crash of 1983. The video game crash of 1983 (known as the Atari shock in Japan) was a large-scale recession in the video game industry that occurred from 1983 to 1985, primarily in North America. The crash was attributed to several factors, including market saturation in the number of game consoles and available games,…
Why did Crash Bandicoot fail?
A lack of cross-console titles also kept individual video games from standing out among the flock, hurting sales and keeping dedicated fanbases from developing. The second factor behind the Crash was that many of the games were just bad.
What happened to the video game industry in 1985?
Revenues 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 second generation of console video gaming in North America, as well as weakened the arcade game market.
What happened in the Atari V Activision case?
Atari quickly sued to block sales of Activision’s products, but failed to secure a restraining order, and ultimately settled the case in 1982. While the settlement stipulated that Activision must pay royalties to Atari, this case ultimately legitimized the viability of third-party game developers.
What was the impact of the Atari Crash of 1986?
It almost destroyed the fledgling industry and led to the bankruptcy of several companies producing home computers and video game consoles in North America. The crash brought an abrupt end to what is considered the second generation of American console video gaming.
What caused the video game industry to decline?
The crash was attributed to several factors, including market saturation in the number of game consoles and available games, and waning interest in console games in favor of personal computers. Revenues peaked at around $3.2 billion in 1983, then fell to around $100 million by 1985 (a drop of almost 97 percent).