How the video game industry nearly vanished in 1983.

In the early 80’s the video game industry was booming in North America. The price of home consoles had dropped and the demand for new video games was skyrocketing. Everyone wanted to play video games and companies were scrambling to meet the demands of consumers. The stage was set for the most famous video game crash in history.

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What caused the crash?

The first major problem contributing to the Crash was an absurd over saturation in the video game console market in North America. By 1983, gamers had dozens of console choices to pick from. This created a situation of confusion for the average customer. Each console came with its own set of games from the company that manufactured it, as well as an expansive web of third-party games.

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What ended the Crash and saved video games?

By 1985 sales of video games had started to recover following the introduction of the Nintendo Entertainment System (NES) to the North American market.

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What were the lasting implications of the Crash?

Before the Crash, North American companies had been the dominant player in the video game industry with Atari leading the way. Directly after the Crash, Japanese companies became the undisputed king of console gaming, and video games in general, with Nintendo and SEGA leading the way.

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Sitting here, taking myself too seriously.

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