What caused the video game crash of the 1980s?

Date:2023-01-07
The video game industry crash of the 1980s, also known as the Atari shock, was caused by a variety of factors. Most notably, a major market oversaturation of home consoles and poor economics plagued the industry. Consumers had been exposed to a very limited number of console options in the beginning, but during this time there was a rapid influx of new consoles and games that flooded the market. Additionally, due to intense competition and an effort to outwit the competition, companies resorted to cutting prices, which further devalued their games and products. Furthermore, the crash was largely attributed to the growing demand for higher quality and more advanced games, this new technology came with a high cost, which detoured consumer interest in older and cheaper games.
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