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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 .
Major events include the video game crash of 1983 in North America, and the third generation of video game consoles beginning with the launch of Nintendo's Family Computer (Famicom) and Sega's SG-1000 in Japan.
The video game crash of 1983 was partially caused by the overabundance of games, seen in this 2014 excavation of a landfill used in the Atari video game burial. [2]Until 1980, the Atari VCS was the only major console on the market, with all games produced in-house, by Atari, Inc. [3]
The incident has also become something of a cultural symbol representative of the video game crash of 1983, often cited as a cautionary tale about the hubris of poor business practices, [31] [32] [33] despite suggestions that the burial allowed the company to write off the disposed-of material for tax relief purposes. [32]
Nintendo were initially discouraged after the crash, with Nintendo of America's market research being met with warnings to stay away from home consoles and US retailers refusing to stock game consoles. As a result, Nintendo instead introduced the Famicom to North America in the form of an arcade hardware, the Nintendo VS. System, in 1984. It ...
Nintendo's design styling for US release was made deliberately different from that of other game consoles. Nintendo wanted to distinguish its product from those of competitors and to avoid the generally poor reputation that game consoles had acquired following the video game crash of 1983.
After the video game crash of 1983, Nintendo filled a market gap in the west by releasing the Japanese Famicom home console (1983) as the Nintendo Entertainment System (NES) in 1985. The innovative NES games Super Mario Bros. (1985) and The Legend of Zelda (1986), both designed by Miyamoto and Takashi Tezuka , were highly influential to the ...
Nintendo had witnessed the events of a flooded game market that occurred in the United States in the early 1980s that led to the 1983 video game crash, and with the Famicom had taken business steps, such as controlling the cartridge production process, to prevent a similar flood of video game clones. [2]