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Encyclopedia > Video game crash of 1983
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History of…
Video games
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First generation (1972-1977)
Second generation (1976-1984)
Video game crash of 1983
Third generation (1983-1992)
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Image File history File links Circle-question. ... Video games were introduced as a commercial entertainment medium in 1971, becoming the basis for an important entertainment industry in the late 1970s/early 1980s in the United States, Japan, and Europe. ... A console game is a form of interactive multimedia used for entertainment. ... The first generation of video game consoles lasted from 1972 until 1977. ... The second generation of video game consoles lasted from 1976 until 1984. ... In the history of video games, the 8-bit era was the third generation of video game consoles, but the first after the video game crash of 1983 and considered by some to be the first modern era of console gaming. ... In the history of video games, the 16-bit era was the fourth generation of video game consoles. ... In the history of computer and video games, the 32-bit / 64-bit /3D era was the fifth generation of video game consoles. ... The sixth-generation era (sometimes referred to as the 128-bit era; see Number of bits below) refers to the computer and video games, video game consoles, and video game handhelds available at the turn of the 21st century. ... In the history of computer and video games, the seventh generation began on November 21, 2004 with the United States release of the Nintendo DS. The beginning of the seventh generation for home consoles came on November 22, 2005 with the release of Microsofts Xbox 360, and continued a...

Arcade games

Golden Age of Arcade Games
This article contains a timeline of notable events in the history of video arcade gaming: // 1971 The Galaxy Game, the earliest known coin-operated arcade video game, makes its debut on the campus of Stanford University. ... The Golden Age of Arcade Games was a peak era of arcade game popularity and innovation. ...

ET for the Atari 2600 is considered by many to be emblematic of the crash along with the Atari 2600 version of Pac-Man.
ET for the Atari 2600 is considered by many to be emblematic of the crash along with the Atari 2600 version of Pac-Man.

The video game crash of 1983 was the crash of the US video game industry and the bankruptcy of a number of companies producing home computers and video game consoles in North America in late 1983 and early 1984. It brought an end to what is considered the second generation of American console video gaming. Image File history File links Etvideogamecover. ... Image File history File links Etvideogamecover. ... E.T. the Extra-Terrestrial is a video game developed by Howard Scott Warshaw based on the film of the same name and released by Atari for the Atari 2600 video game system in 1982. ... The Atari 2600, released in October 1977, is the video game console credited with popularizing the use of microprocessor based hardware and cartridges containing game code, instead of having non-microprocessor dedicated hardware with all games built in. ... This does not cite its references or sources. ... Black Monday (1987) on the Dow Jones Industrial Average A stock market crash is a sudden dramatic decline of stock prices across a significant cross-section of a stock market. ... Namcos Pac-Man was a hit, and became a universal phenomenon. ... Notice of closure stuck on the door of a computer store the day after its parent company, Granville Technology Group Ltd, declared bankruptcy (strictly, put into administration—see text) in the United Kingdom. ... Children playing on a Amstrad CPC 464 in the 1980s. ... A video game console is an interactive entertainment computer or electronic device that manipulates the video display signal of a display device (a television, monitor, etc. ... North America North America is a continent[1] in the Earths northern hemisphere and (chiefly) western hemisphere. ... Year 1983 (MCMLXXXIII) was a common year starting on Saturday (link displays the 1983 Gregorian calendar). ... Year 1984 (MCMLXXXIV) was a leap year starting on Sunday (link displays the 1984 Gregorian calendar). ... The second generation of video game consoles lasted from 1976 until 1984. ...


The crash lasted for two years, during which there were many expressed doubts about the long-term viability of video game consoles. The market was revitalized in part due to the success of the Nintendo Entertainment System (NES) (along with its landmark title Super Mario Bros.) which was first introduced in Japan in 1983 (as Famicom) and then in North America in 1985, and which would become extremely popular by 1987. “NES” redirects here. ... Super Mario Bros. ... Year 1983 (MCMLXXXIII) was a common year starting on Saturday (link displays the 1983 Gregorian calendar). ... Year 1985 (MCMLXXXV) was a common year starting on Tuesday (link displays 1985 Gregorian calendar). ... Year 1987 (MCMLXXXVII) was a common year starting on Thursday (link displays 1987 Gregorian calendar). ...


This period is sometimes referred to as the video game crash of 1984, because that was the year the full effects of the crash became obvious to consumers. Hundreds of games were in development for 1983 release, and this overproduction resulted in a saturated market without the consumer interest it needed.

Contents

Background

In Europe, the early years of personal computing (1981–1985) were trumpeted by very aggressive marketing of inexpensive home computers, especially the Commodore 64, with the theme “Why buy your child a video game and distract them from school when you can buy them a home computer that will prepare them for college?”[1] Marketing research for both sides tracked the change as millions of consumers shifted their intention to buy choices from game consoles to low-end computers that retailed for similar prices, but with much lower prices for computer games than console games. Wikibooks has more about this subject: Marketing Look up marketing in Wiktionary, the free dictionary. ... Children playing on a Amstrad CPC 464 in the 1980s. ... The Commodore 64 is the best-selling single personal computer model of all time. ...


By 1982 computers like the Commodore 64 and Sinclair ZX Spectrum had launched in Europe and were selling extremely well there, dominating the European games market and growing throughout 1983/1984. The significantly lower price of computer games (some of which cost just 1% of the price of a computer) strengthened this domination and helped quickly create a mass computer games market. By the time the 1983/1984 North American console crash happened, the European video games industry was mostly computer-based with most games made by European publishers, and was thus almost completely unaffected by the crash. The ZX Spectrum is a home computer released in the United Kingdom in 1982 by Sinclair Research Ltd. ...


A similar home computer marketing campaign occurred in the US without the same effect, and instead the personal computer industry grew because of the console crash. Motto: (Out Of Many, One) (traditional) In God We Trust (1956 to date) Anthem: The Star-Spangled Banner Capital Washington D.C. Largest city New York City None at federal level (English de facto) Government Federal constitutional republic  - President George Walker Bush (R)  - Vice President Dick Cheney (R) Independence from...


In Japan, the gaming world was separate from the North American or European markets, in terms of both hardware and software; thus, events to do with the American or European games industry had no effect on the Japanese consumer. The Japanese preferred homegrown gaming platforms such as the Nintendo Famicom console, Sega SG-1000 console, and MSX computer, all of which launched during 1983 and all of which saw growth throughout 1983/1984, a period when the US industry was shrinking and collapsing. The SG-1000 ), which stands for Sega Game 1000, is a cartridge-based video game console manufactured by Sega. ... Sony MSX 1, Model HitBit-10-P MSX was the name of a standardized home computer architecture in the 1980s. ...


Preface and cause

The American video game console crash of 1983 was caused by a combination of factors:

  • The second generation of consoles was the first to be sustained by large libraries of interchangeable software. Interest in consoles has historically sagged after 5 years, and in 1983, Atari's market leader, the 2600, was celebrating its fifth birthday. Without established precedent, the industry was not prepared to take consoles to the next generation, and the long-term delay of Atari's own 7800 consoles left them with little to captivate consumers hungry for the next big thing.
  • A flood of consoles on the US market giving consumers too many choices. At the time of the US crash, there was a plethora of consoles on the market: Atari 2600, Atari 5200, Bally Astrocade, Colecovision, Coleco Gemini, Emerson Arcadia 2001, Fairchild Channel F System II, Magnavox Odyssey2, Mattel Intellivision (and its just-released update with several peripherals, Intellivision II), Sears Tele-Games systems (which included 2600 and Intellivision clones), Tandyvision, VTech CreatiVision, and Vectrex. Each one of these consoles had its own library of games, and many had (in some cases large) third-party libraries. Likewise, many of these same companies announced yet another generation of consoles for 1984, such as the Odyssey3, and Atari 7800.[2]
  • A flood of poor titles from hastily financed startups, combined with weak high-profile Atari 2600 games such as the game based on the hit movie ET and an infamous port of the popular arcade game Pac-Man. These games were also notoriously overproduced. In the case of E.T., Atari even produced more units than it had sold consoles in anticipation of its success[2]
  • The news media sensationalized both the boom days of 1980 and the problems of 1982–83. In particular, the story of Atari burying millions of ET cartridges in a New Mexico landfill[3] shifted the outlook of the video game market in the eyes of many media outlets.[citation needed]

Up until the early 1980s, personal computers had primarily been sold in specialty computer stores at a cost of more than US$1,000, which, factoring in inflation, is over US$2,500 as of 2007. The early 1980s saw the introduction of inexpensive computers that could connect to a TV set, and offered color graphics and sound. The first of these systems were the Atari 400 and 800, but many competing models vied for consumer attention. As the pioneering computer-book author and journalist David H. Ahl recounted in 1984: The Atari 2600, released in October 1977, is the video game console credited with popularizing the use of microprocessor based hardware and cartridges containing game code, instead of having non-microprocessor dedicated hardware with all games built in. ... The Atari 5200 SuperSystem, or simply Atari 5200, is a video game console that was introduced in 1982 by Atari as a replacement for the famous Atari 2600. ... Bally Astrocade The Astrocade is an early video game console and simple computer system designed by a team at Midway, the videogame division of Bally. ... This article or section does not cite any references or sources. ... The Coleco Gemini was a Atari 2600 clone manufactured by Coleco. ... Arcadia 2001 The Arcadia 2001 was a second-generation 8-bit console released by Emerson Radio Corp. ... The Fairchild Channel F is the worlds second cartridge-based video game console, after the Magnavox Odyssey. ... Philips Videopac G7000 shown playing Pickaxe Pete The Magnavox Odyssey², known in Europe as the Philips Videopac G7000, in Brazil as the Philips Odyssey, and also by many other names, was a video game console released in 1978. ... Mattel Inc. ... The Intellivision is a video game console released by Mattel in 1979. ... The Intellivision is a video game console released by Mattel in 1980; development of the console began in 1978 (less than a year after the introduction of its main competitor, the legendary Atari 2600 aka the Atari VCS). ... The Video Technology CreatiVision was a hybrid computer and video game console introduced by VTech in 1981. ... The Vectrex is an 8-bit video game console developed by General Consumer Electric (GCE) and later bought by Milton Bradley Company. ... The title given to this article is incorrect due to technical limitations. ... The Atari 7800 is a video game console released by Atari in June 1986 (a test market release occurred two years earlier). ... A startup company is a company with a limited operating history. ... The Atari 2600, released in October 1977, is the video game console credited with popularizing the use of microprocessor based hardware and cartridges containing game code, instead of having non-microprocessor dedicated hardware with all games built in. ... E.T. the Extra-Terrestrial is a video game developed by Howard Scott Warshaw based on the film of the same name and released by Atari for the Atari 2600 video game system in 1982. ... Centipede by Atari is a typical example of a 1980s era arcade game. ... This does not cite its references or sources. ... News media satellite up-link trucks and photojournalists gathered outside the Prudential Financial headquarters in Newark, New Jersey in August, 2004 following the announcement of evidence of a terrorist threat to it and to buildings in New York City. ... Capital Santa Fe Largest city Albuquerque Area  Ranked 5th  - Total 121,665 sq mi (315,194 km²)  - Width 342 miles (550 km)  - Length 370 miles (595 km)  - % water 0. ... Albury landfill, Surrey, England A landfill, also known as a dump, is a site for the disposal of waste materials by burial and is the oldest form of waste treatment. ... This article does not cite any references or sources. ... ISO 4217 Code USD User(s) the United States, the British Indian Ocean Territory,[1] the British Virgin Islands, East Timor, Ecuador, El Salvador, the Marshall Islands, Micronesia, Palau, Panama, Caicos Islands, and the insular areas of the United States Inflation 2. ... “TV” redirects here. ... For the journal by ACM SIGGRAPH, see Computer Graphics (Publication). ... An Atari 800XL, one of the most popular machines in the series. ... David H. Ahl is the founder of Creative Computing magazine. ...

In the spring of 1982, the TI 99/4A was priced at $349, 16K Atari 400 at $349, and Radio Shack Color Computer at $379, while Commodore had just reduced the price of the VIC-20 to $199 and the C64 to $499. 1979 TI-99/4 with RF modulator, optional Speech Synthesizer, keyboard overlays, and a cartridge. ... A kilobyte (derived from the SI prefix kilo-, meaning 1000) is a unit of information or computer storage equal to the decimal 1024 bytes (2 to the 10th power, or 1,024 bytes based in the binary system). ... An Atari 800XL, one of the most popular machines in the series. ... RadioShack Corporation (formerly Radio Shack) (NYSE: RSH) runs a chain of electronics retail stores in the United States, as well as parts of Europe. ... TRS-80 Color Computer II The Radio Shack TRS-80 color computer (also called Tandy Color Computer, or CoCo) was a home computer based around the Motorola 6809 processor and part of the TRS-80 line. ... The VIC-20 (Germany: VC-20; Japan: VIC-1001) is an 8-bit home computer. ... The Commodore 64 is the best-selling single personal computer model of all time. ...

[4]

Since these and other computers generally had more memory available—and better graphic and sound capabilities—than a console, they permitted more sophisticated games and could also be used for tasks such as word processing and home accounting. Also, their games were sometimes much easier to copy, since they came on floppy disks or cassette tapes instead of ROM modules (though many of them continued to use ROM modules extensively or even primarily). This article does not cite any references or sources. ... Word processing, in its now-usual meaning, is the use of a word processor to create documents using computers. ... It has been suggested that Accounting scholarship be merged into this article or section. ... A floppy disk is a data storage device that is composed of a disk of thin, flexible (floppy) magnetic storage medium encased in a square or rectangular plastic shell. ... For the meaning of cassette in genetics, see cassette (genetics). ... Read-only memory (usually known by its acronym, ROM) is a class of storage media used in computers and other electronic devices. ... Read-only memory (usually known by its acronym, ROM) is a class of storage media used in computers and other electronic devices. ...


Commodore explicitly targeted video game consoles in its advertising, offered trade-ins toward the purchase of a Commodore 64, and suggested that college-bound children would need to own computers, not video games. Research by Atari and Mattel confirmed that these television ads badly damaged both their machines’ images and sales.[citation needed] Commodore, the commonly used name for Commodore International, was an American electronics company based in West Chester, Pennsylvania which was a vital player in the home/personal computer field in the 1980s. ... Advertising is nothing but just waste of money. ... This article is about a corporate game company. ... Mattel Inc. ...

Screenshot of the Atari 2600 version of Pac-Man.
Screenshot of the Atari 2600 version of Pac-Man.

Unlike most other computer manufacturers, Commodore also sold the machines in the same outlets as video game consoles: discount, department, and toy stores. Commodore’s vertical integration allowed it to engage in aggressive discount pricing; its margins were much higher than those of Texas Instruments (TI), Coleco, or Atari, as Commodore’s MOS Technology, Inc. subsidiary actually manufactured many of its own chips (notably the 6502 CPU). Some companies had to get their chips from this subsidiary, leading to a similar situation that had occurred in the calculator market in the early 1970s, when companies found themselves buying chips from Texas Instruments but also having to compete with TI calculators. Other companies, such as Atari (who used the 6502 in Atari computers and video game consoles), were able to set up deals to allow manufacturing with their own third party companies. Image File history File links Screenshot of the Atari 2600 port of Pac-Man by Namco. ... Image File history File links Screenshot of the Atari 2600 port of Pac-Man by Namco. ... The Atari 2600, released in October 1977, is the video game console credited with popularizing the use of microprocessor based hardware and cartridges containing game code, instead of having non-microprocessor dedicated hardware with all games built in. ... Pac-Man is an arcade game developed by Namco and licensed for distribution by Midway Games in 1979. ... A discount store is a retail store offering a wide range of products, many branded, at discounted prices. ... The interior of a typical Macys department store. ... A toy store, or toy shop, is a retail outlet that sells toys. ... It has been suggested that Vertical expansion be merged into this article or section. ... Texas Instruments (NYSE: TXN), better known in the electronics industry (and popularly) as TI, is an American company based in Dallas, Texas, USA, renowned for developing and commercializing semiconductor and computer technology. ... Coleco (1932 - 1989) was a company founded in 1932 by Maurice Greenberg as Connecticut Leather Company. It became a highly successful toy company in the 1980s, known for its mass-produced version of Cabbage Patch Kids and, to a lesser extent, for its video game consoles Coleco Telstar and ColecoVision. ... This article is about a corporate game company. ... MOS Technology, Inc. ... In business, a subsidiary is a company controlled by another company or corporation. ... Integrated circuit of Atmel Diopsis 740 System on Chip showing memory blocks, logic and input/output pads around the periphery Microchips with a transparent window, showing the integrated circuit inside. ... The MOS Technology 6502 is an 8-bit microprocessor that was designed by Chuck Peddle for MOS Technology in 1975. ... Die of an Intel 80486DX2 microprocessor (actual size: 12×6. ... A calculator is a device for performing calculations. ... The 1970s decade refers to the years from 1970 to 1979, also called The Seventies. ...


The first sign of the coming disaster started with games with perceived high quality: Activision was co-founded by Atari programmers who left the company in 1979 because Atari did not allow credits to appear on the games and did not pay employees a royalty based on sales. At the time, Atari was owned by Warner Communications. The developers felt that they should receive the same recognition that musicians, directors, and actors get from Warner’s other divisions. Activision, Inc. ... A game programmer is a software engineer who primarily develops computer or video games or related software (such as game development tools). ... Also: 1979 by Smashing Pumpkins. ...


Atari quickly sued to block sales of Activision’s products, but never won a restraining order and ultimately lost the case in 1982. An injunction is an equitable remedy in the form of a court order that either prohibits or compels (enjoins or restrains) a party from continuing a particular activity. ... Year 1982 (MCMLXXXII) was a common year starting on Friday (link displays the 1982 Gregorian calendar). ...


This court case legitimized third-party development, and companies as ill-prepared as Quaker Oats (as division US Games) rushed to open video game divisions, hoping to impress both Wall Street and consumers. Companies lured away each others’ programmers or used reverse engineering to learn how to make games for proprietary systems. Atari hired several Intellivision programmers, prompting a lawsuit by Mattel against Atari that included charges of industrial espionage. Quaker Oats Company makes many types and flavors of oatmeal. ... This page is a candidate for speedy deletion, because: no significant content If you disagree with its speedy deletion, please explain why on its talk page or at Wikipedia:Speedy deletions. ... Elaborate marble facade of NYSE as seen from the intersection of Broad and Wall Streets For other uses, see Wall Street (disambiguation). ... Reverse engineering (RE) is the process of taking something (a device, an electrical component, a software program, etc. ... The Intellivision is a video game console released by Mattel in 1979. ... It has been suggested that this article or section be merged with Competitive Intelligence. ...


Despite the lessons learned by Atari in the loss of its programmers to Activision, Mattel continued to try to avoid crediting game designers. Rather than reveal the names of Intellivision game designers, Mattel instead required that a 1981 TV Guide interview with them was to change their names to protect their collective identities. Colecovision designers worked in similar obscurity, feeding more departures to upstart competitors. The Blue Sky Rangers are the group of Intellivision game programmers who once worked for Mattel back in the early 1980s. ... TV Guide is the name of two North American weekly magazines about television programming, one in the United States and one in Canada. ...


Unlike Microsoft, Nintendo, Sega, or Sony in later decades, the hardware manufacturers had lost the exclusive control of their platform’s supply of games. With it they had lost the ability to make sure that the toy stores were never overloaded with products. Activision, Atari and Mattel had experienced programmers, but many of the new companies rushing to join the market did not have experienced talent to create the games. Titles such as Chase the Chuck Wagon, Skeet Shoot, and Lost Luggage were examples of games companies made in the hopes of taking advantage of the video game boom. While heavily advertised and marketed, the games were perceived to be of poor quality and did not catch on as hoped. Microsoft Corporation, (NASDAQ: MSFT, HKSE: 4338) is a multinational computer technology corporation with global annual revenue of US$44. ... Nintendo Company, Limited (任天堂 or ニンテンドー Nintendō; NASDAQ: NTDOY, TYO: 7974 usually referred to as simply Nintendo, or Big N ) is a multinational corporation founded on September 23, 1889[1] in Kyoto, Japan by Fusajiro Yamauchi to produce handmade hanafuda cards. ... Sega Corporation ) is a multinational Japanese video game software and hardware development company, and a former home computer and console manufacturer. ... Sony Corporation ) is a Japanese multinational corporation and one of the worlds largest media conglomerates with revenue of $66. ... Chase The Chuck Wagon is a video game for the Atari 2600 developed by Spectravision and released as part of a promotion by Purina. ... Skeet Shoot is skeet shooting video game for the Atari 2600 produced by Apollo. ...


The established video game companies also played a role in the crash. For example, when Atari issued its widely advertised ET game, it manufactured millions of units in anticipation of a major hit. Unfortunately, the game had been rushed to market after only six weeks of development time.[5] The game’s poor reputation spread quickly by word of mouth, and the story was picked up by newscasts that trumpeted ET as the first great bomb of the video game age. Word of mouth, is a reference to the passing of information by verbal means, especially recommendations, but also general information, in an informal, person-to-person manner. ... As a hit-driven business, the great majority of the computer and video games industrys software releases have been commercial failures. ...


Price war

At the same time as the gaming shakeout, a home-computer price war was occurring that proved disastrous for some contenders in the industry. As David Ahl recounted:

In January 1983, Jack Tramiel, the head of Commodore, slashes the price of the Vic to $139 and the C64 to $400. TI reacts a month later with a rebate that lowers the street price of the 99/4A to $149. Tramiel turns around and cuts the price of the Vic to under $100, forcing TI to announce a further cut in the price of the 99/4A to $100 to take effect in June. On June 10, 1983, TI announced the largest loss in their corporate history and three months later withdrew from the home computer market. Tramiel, still looking for market share, slashed the price of the C64 to $200 and virtually walked away with the holiday buying season for the second year in a row. Jack Tramiel (born 1928) is a businessman, famous for founding Commodore International, manufacturer of the Commodore 64 and Commodore Amiga home computers, and later President and CEO of Atari Corp. ... Commodore, the commonly used name for Commodore International, was an American electronics company based in West Chester, Pennsylvania which was a vital player in the home/personal computer field in the 1980s. ...

[4]

Besides TI, casualties included the Coleco Adam, the Timex-Sinclair line, and a number of other smaller players. Atari nearly went bankrupt and in 1984 was sold off by its parent company Warner Communications (now part of Time Warner). The purchaser was, ironically, Jack Tramiel. Commodore’s board of directors, keen on taking the company into a direction away from home computing, had forced him out; even the winner of the home computer war found it a Pyrrhic victory. Memory console and keyboard for Coleco Adam computer expansion for the Colecovision The Coleco Adam was a home computer, an attempt in the early 1980s by American toy manufacturer Coleco to follow on the success of its ColecoVision game console. ... It has been suggested that this article be split into multiple articles. ... Warner Communications, formerly Kinney National Company, was the parent company for Warner Bros. ... Time Warner Inc. ... In relation to a company, a director is an officer (that is, someone who works for the company) charged with the conduct and management of its affairs. ... A Pyrrhic victory is a victory with devastating cost to the victor. ...


Immediate effect on the industry

The rush to market of so many substandard games in 1982 flooded the retail channel. Inside Mattel, one Intellivision sales executive explained the problem by saying, “Two years of products have been pushed into the channel in one year, and there’s no way to re-balance the system.” When stores went to return goods to these new publishers, the publishers had neither new products nor cash to refund the retailers’ money. Many publishers, including Games by Apollo and US Games (the ill-fated Quaker Oats games unit), quickly folded. This page is a candidate for speedy deletion, because: no significant content If you disagree with its speedy deletion, please explain why on its talk page or at Wikipedia:Speedy deletions. ...


Unable to return the unsold games to defunct publishers after Christmas 1982, toy stores marked down the titles and placed them in discount bins and sale tables. Where the typical game of 1982 cost US$34.95 — about US$75 in 2007 when adjusted for inflation — the discount bins quickly settled on the price of US$4.95 per game. By June 1983 the market for US$34.95 games had plummeted, being replaced by the market of rushed, low-budget games. Consumers’ trips to the store often began and ended at the discount bin, the uninformed customer seeing cheaper games as more appealing regardless of quality. After some time, the consumers began to tire of the substandard quality of the cheaper games, and rather than pay the high prices for the dwindling number of high-budget games, they quit gaming entirely. Christmas is an annual holiday that celebrates the birth of Jesus. ... ISO 4217 Code USD User(s) the United States, the British Indian Ocean Territory,[1] the British Virgin Islands, East Timor, Ecuador, El Salvador, the Marshall Islands, Micronesia, Palau, Panama, Caicos Islands, and the insular areas of the United States Inflation 2. ...


A massive industry shakeout resulted. Magnavox and Coleco abandoned the video game business. Imagic withdrew its IPO the day before its stock was to go public, and later collapsed. While the largest of the third-party cartridge makers, Activision, survived for several more years[6] on personal-computer platforms (thanks to their then-legal ability to average their income and recover millions in past tax payments from the IRS), most of the smaller software development houses supporting the Atari 2600 closed. Magnavox (Latin for loud voice) is a consumer electronics company that is now part of Philips Consumer Electronics. ... Coleco (1932 - 1989) was a company founded in 1932 by Maurice Greenberg as Connecticut Leather Company. It became a highly successful toy company in the 1980s, known for its mass-produced version of Cabbage Patch Kids and, to a lesser extent, for its video game consoles Coleco Telstar and ColecoVision. ... Imagic was a third-party maker of games for the Atari 2600 and other early video game consoles in the early 1980s. ... Wikipedia does not yet have an article with this exact name. ... Activision, Inc. ... . The Internal Revenue Service (IRS) is the United States government agency that collects taxes and enforces the tax laws. ...


Some game enthusiasts consider 1983 a peak time in the history of arcade games, the home video game consoles’ bigger, stand-alone brethren located in diners, shopping malls, and video arcades.[original research?] Notably, this was the year the hugely successful Dragon’s Lair was introduced, the first laserdisc video-game, which incorporated full-motion video animation. But coin-op games were caught up in the public perception that "the video game fad is over," and their sales dropped off sharply as well. Centipede by Atari is a typical example of a 1980s era arcade game. ... A diner in Freehold Borough, New Jersey This article is about a type of restaurant. ... This article needs additional references or sources for verification. ... arcade, see Arcade. ... Dragons Lair was one of the first laserdisc video games, released in June 1983 by Cinematronics. ... Laserdisc (LD) was the first commercial optical disc storage medium, and was used primarily for the presentation of movies as to be viewed at home. ... In biochemistry, flavin adenine dinucleotide (FAD) is the precursor molecule to FADH2. ...


Additionally, the toy retailers which controlled consumers’ access to games had concluded that video games were a fad, the fad was over, and that the shelf space should be reassigned to different products. This led to many retailers refusing to have anything to do with video games for several years, and was the most notable wall that Nintendo ran up against when trying to market US-branded Famicom in the US. This directly prompted Nintendo to make such changes as calling the system an “Entertainment System” rather than “console,” using terms like “control deck” and “Game Pak,” as well as include a toy robot called ROB to convince toy retailers to allow it in their stores. “NES” redirects here. ... The Robotic Operating Buddy R.O.B. (Robotic Operating Buddy) is an accessory for the Nintendo Entertainment System. ...


Long-term effect on the industry

The American video game crash had two long-lasting results. First, dominance in the home console market shifted from the United States to Japan. When the video game market recovered by 1987, the leading player was Nintendo’s NES, with a resurgent Atari battling Sega (a Japanese company originally founded by an American, David Rosen) for the number two spot. Atari never truly recovered; it never managed to match the success of its 2600 console, and finally stopped producing game systems in 1996 after the failure of the Atari Jaguar. Year 1987 (MCMLXXXVII) was a common year starting on Thursday (link displays 1987 Gregorian calendar). ... Nintendo Company, Limited (任天堂 or ニンテンドー Nintendō; NASDAQ: NTDOY, TYO: 7974 usually referred to as simply Nintendo, or Big N ) is a multinational corporation founded on September 23, 1889[1] in Kyoto, Japan by Fusajiro Yamauchi to produce handmade hanafuda cards. ... “NES” redirects here. ... Sega Corporation ) is a multinational Japanese video game software and hardware development company, and a former home computer and console manufacturer. ... For other persons named David Rosen, see David Rosen (disambiguation). ... Year 1996 (MCMXCVI) was a leap year starting on Monday (link will display full 1996 Gregorian calendar). ... The Atari Jaguar is a video game console that was released in November 1993 to rival the Mega Drive/Genesis and the Super Nintendo Entertainment System as a powerful next generation platform. ...


A second, highly visible result of the crash was the institution of measures to control third-party development of software. Secrecy against industrial espionage had failed to stop rival companies from reverse engineering the Mattel and Atari systems, and hiring away their trained game programmers. Nintendo—and all the manufacturers who followed—controlled game distribution by implementing licensing restrictions and a security lockout system. Would-be renegade publishers could not publish for each others’ lines—as Atari, Coleco and Mattel had done—because in order for the cartridge to work in the console, the cartridge must contain the appropriate key chip for the lock inside the console and the publisher must acknowledge their license to Nintendo in the copyright notices. If no key chip was present or if the key chip did not match the lock inside the console, the game would not work. Although Accolade achieved a technical victory in one court case against Sega, challenging this control, even it ultimately yielded and signed the Sega licensing agreement. Several publishers—notably Tengen (Atari), Color Dreams, and Camerica—challenged Nintendo’s control system during the 8-bit era. The concepts of such a control system remain in use on every major video game console produced today even with fewer “cartridge-based” consoles on the market than in the 8/16-bit era. Replacing the security chips in most modern consoles are specially-encoded optical discs that cannot be copied by most users and can only be read by a particular console under normal circumstances. In the video game industry, a third-party developer is a developer that is not directly tied to the primary product the consumer is using. ... It has been suggested that this article or section be merged with Competitive Intelligence. ... Accolade was a video game developer and publisher of the 1980s and 1990s. ... Sega Corporation ) is a multinational Japanese video game software and hardware development company, and a former home computer and console manufacturer. ... Tengen was a video game publisher and developer that was created after the video game crash of 1983-1984 by Atari Games. ... A screenshot of Robo Demons, a Color Dreams game Color Dreams was a company that developed video games for the 8-bit Nintendo Entertainment System (NES). ... Camerica is a video game company that was notable for producing unlicensed Nintendo Entertainment System games and hardware. ... In computing, sound reproduction, and video, an optical disc is flat, circular, usually polycarbonate disc whereon data is stored. ...


Nintendo reserved the lion’s share of NES game revenue for itself by limiting most third-party publishers to only five games per year on its systems. It also required all cartridges to be manufactured by Nintendo, and to be paid for in full before they were manufactured. Cartridges could not be returned to Nintendo, so publishers assumed all the risk. As a result, some publishers lost more money due to distress sales of remaining inventory at the end of the NES era than they ever earned in profits from sales of the games. Nintendo portrayed these measures as intended to protect the public against poor-quality games, and placed a golden seal of approval on all games released for the system. Most of the Nintendo platform-control measures were adopted by later manufacturers like Sega, Sony and Microsoft. Nintendos Official Seal of Quality in NTSC regions Nintendos Official Seal of Quality in PAL regions. ...


A lesser effect of the crash that lasted through the end of the 1980s until a new generation of console hardware had arrived: surviving game development and publishing companies began targeting home computer platforms in the absence of a strong console to target. Electronic Arts, for example, was founded in 1982 and began shipping titles in 1983; it avoided being caught in the crash because of its business plan to develop only for computers. Electronic Arts (EA) (NASDAQ: ERTS) is an American developer, marketer, publisher, and distributor of computer and video games. ...


References

  • DeMaria, Rusel & Wilson, Johnny L. (2003). High Score!: The Illustrated History of Electronic Games (2nd ed.). New York: McGraw-Hill/Osborne. ISBN 0-07-222428-2.

Notes

  1. ^ Commodore Vic20 commercial.
  2. ^ a b Taylor, Alexander L. III (1982-12-20). Pac-Man Finally Meets His Match. Time Magazine. Retrieved on 2006-12-04.
  3. ^ Five Million E.T. Pieces. Retrieved on 2006-12-14.
  4. ^ a b Ahl, David H. (November 1984). “The first decade of personal computing.” Creative Computing, vol. 10, no. 11: p. 30.
  5. ^ Atari Takes a Bath on E.T.. The 25 Dumbest Moments in Gaming. gamespy.com (June 2003). Retrieved on 2006-03-04.
  6. ^ Activision eventually faded as well; its name and assets were purchased by a new management team led by Bobby Kotick, who built a new, highly successful, but otherwise unrelated company based on the old brand. This company still exists, and is considered one of the major video game publishers.

Year 2006 (MMVI) was a common year starting on Sunday (link displays full 2006 calendar) of the Gregorian calendar. ... is the 338th day of the year (339th in leap years) in the Gregorian calendar. ... Year 2006 (MMVI) was a common year starting on Sunday (link displays full 2006 calendar) of the Gregorian calendar. ... is the 348th day of the year (349th in leap years) in the Gregorian calendar. ... Year 2006 (MMVI) was a common year starting on Sunday (link displays full 2006 calendar) of the Gregorian calendar. ... is the 63rd day of the year (64th in leap years) in the Gregorian calendar. ... Robert Bobby Kotick, chairman and CEO of American computer game company Activision, Inc. ...

External links

  • Article at The Dot Eaters, a chronicle of the Great Videogame Crash
  • The Golden Age of Video Game Arcades (a 200-page story contained within Twin Galaxies' Official Video Game & Pinball Book of World Records) by Walter Day (1998), ISBN 1-887472-25-8
  • Classic Gaming Expo site Biographies and history of the era
  • Official IntelliVision History Site by the original programmers
  • The History of Computer Games: The Atari Years Written by Chris Crawford, a game designer at Atari during the crash
  • Detailed C64 Chronology Events & Game release dates (1982-1990)

  Results from FactBites:
 
Gambling Guide > Games Classification > Video Games (2399 words)
The term "video game" is often not considered to include computer games and coin-operated arcade games, both because historically the games in these three categories were very different, and also because the activity of playing these three types of games is different.
Video games are made by developers, sometimes individuals, but almost always a team consisting of designers, graphic designers and other artists, programmers, sound designers, musicians, and other technicians.
Video games are very popular and the market has grown continuously since the end of the video game crash of 1983.
links2 (1943 words)
The most successful gaming console of its time, it helped revitalize the video game industry following the video game crash of 1983, and set the standard for subsequent consoles in everything from game design (the first modern platform game, Super Mario Bros., was the system's first "killer app") to business practices.
Unlicensed games, such as Wisdom Tree's Bible Adventures, were often released in cartridges which looked very different from typical NES game packsSeveral companies began producing unlicensed games, either refusing to pay the licensing fee or manufacturing their own cartridges after having been rejected by Nintendo.
A few unlicensed games released in Europe and Australia came in the form of a dongle that would be connected to a licensed game, in order to use the licensed game's 10NES lockout chip for authentication.
  More results at FactBites »

 
 

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