North American video game industry crash of 1983

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The North American video game industry crash of 1983 was a turning point in video game development history as a result of the dissolution of a number of video games console manufacturers and some American video games development and publishing companies. Computer software developers, the personal computer, microcomputers and the Japanese companies (Nintendo, SEGA, Bandai/Namco, etc) were relatively unaffected.

Trigger conditions[edit | edit source]

While the exact cause may never be known precisely, there are a number of factors commonly blamed for it. These are:

The damage[edit | edit source]

American companies lost millions of dollars, and some companies like Coleco and Magnavox left the video game market entirely, never to return. Additionally, some consoles like the ColecoVision, Intellivision, Vectrex and the Magnavox Odyssey² dropped out of the market.

This would have ended the console market altogether but for the introduction of Nintendo's Family Computer (released in North America and Europe as the NES) in Japan.