Video Game Crash

The video game crash of 1983 was when the video game market completely collapsed. It wiped out the major publishers and many game developers. This would lead to a near complete reset for the home console market. The main causes of the crash came from oversaturation and false marketing. Too many companies were making game consoles. Even more were publishing their own games without oversight of the console they were releasing on. The crash would last until 1985 when the American market rebounded with the widespread release of the Nintendo Entertainment System.

This crash was mostly a regional phenomenon. North America was the heaviest hit so foriegn companies from unaffected areas moved in and took control. Japan, having not been very affected, started selling consoles in North America without any competition. This led to Nintendo becoming the biggest gaming company for a while.