Video Game Crash of 1983

Although not all software and video game crashes result from coding errors, at Bugs plat, we are passionate about preventing them. Early in the 1980s, the North American video game market was growing thanks to falling home console prices and surging interest in new releases. Because of the fad, everyone wanted to play video games, and businesses were rushing to accommodate customer demand.

A recession that rocked the video game business in 1983 almost meant the extinction of the medium for a whole generation. Many renowned companies filed for bankruptcy or stopped producing video games as a result of the accusations that they were a fad. The Great North American Video Game Crash is the name of this economic downturn.

How did it affect the games we enjoy playing today?

• Even though it expanded quickly in 1983, the video game market was still tiny compared to what it is now.
• This young sector experienced a staggering 97% decline between 1983 and 1985, destroying video game firms and prompting several prominent industry critics to forecast the demise of home video gaming.
• Numerous video game firms, particularly smaller third-party production studios, were immediately compelled to shut down as a direct result. Critically, toy stores, the primary distributors of video games, stopped marketing them in stores after deciding that they were only a fad.
• As businesses struggled to adapt to the changes in the industry, the growth of video games stayed flat for the following three years.

What induced the collision?

The first important factor contributing to the Crash was the absurd oversaturation of the North American video game system market. By 1983, players had a wide range of console choices. As a result, the typical customer was left in a condition of confusion. Each system came with its own set of games from the maker and a massive selection of games from third parties.

Did that prevent the game from crashing?

• After the Nintendo Entertainment System (NES) release in the North American market in 1985, video game sales began to pick up.
• Hiroshi Yamauchi, CEO of Nintendo in 1986, claimed that “Atari collapsed because they granted too much flexibility to third-party creators and the market was overwhelmed with shoddy games.” This comment pretty much covers up what caused the downfall of the video game business in 1983, even though it was not only an Atari issue.
• Nintendo produced fewer, higher-quality video games and carefully supervised third-party development to prevent making the same error again. They introduced an integrated checking circuit (CIC) to prevent illegal game developers from creating games for their platforms. The CIC effectively served as a lock-out chip that prevented unlicensed third parties from making games for the NES.

By establishing an “Official Nintendo Seal” of approval for its video game titles, Nintendo was also able to regain the trust of video game players. No game was ever released for Nintendo without this seal of approval; this tradition is still evident in modern video games.