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A free scan shows the junk files, broken settings and background clutter dragging Windows down - then fixes them in one click.Free scan · Windows 10 & 11The video game crash of 1983 was a downturn centered on the North American home-console market, not the end of video games worldwide. It grew out of a crowded console and cartridge business, an oversupply of uneven games, high-profile commercial setbacks and competition from home computers. Atari’s E.T. cartridge contributed to the loss of confidence, but it did not cause the crash by itself.
The Smithsonian describes a crash beginning in 1982 and lasting until 1985; the Computer History Museum says the American electronic-game market had been depressed since 1983. The ten factors below are an explanatory grouping of overlapping pressures, not a ranked or canonical list.
What caused the video game crash of 1983?
There was no single trigger. The Smithsonian’s account emphasizes cartridge surplus and competition from versatile home computers, while the Computer History Museum describes a glut of poorly performing games and consoles. Together, these accounts point to a feedback loop: a fast-growing market attracted more systems and games; supply outpaced sustainable demand; inconsistent performance and commercial disappointments weakened confidence; and buyers had alternatives beyond gaming-only consoles.
The sources do not quantify the relative weight of each factor or establish a market-wide percentage decline. The ten points here explain how the pressures fit together rather than assign them precise shares.
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- Atari 2600+ PAC-MAN Edition: The iconic console, now in PAC-MAN yellow with illuminated character icons across the front.
- Backward and Forward Compatible: Play retro games just like you remember them on a system upgraded for today. Play both Atari 2600 and 7800 games on this 2600+ console. Compatible with everything in the Plus Platform, as well as with most original accessories and cartridges.
- New Arcade-Style PAC-MAN Game: Includes PAC-MAN: Double Feature 2-in-1 game cartridge. Featuring an all-new, arcade-style version, PAC-MAN 7800 and the very first home version of the game, PAC-MAN 2600.
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Ten factors behind the downturn
1. Multiple dedicated consoles competed for buyers
Second-generation cartridge systems such as the Atari VCS, Intellivision and ColecoVision competed for the same home-console audience. The Smithsonian places these systems in a broader expansion of console gaming, which brought more choice but also more competition for buyers.
2. Cartridge catalogs expanded rapidly
Interchangeable games sold separately gave console owners a growing catalog to choose from and created a new stream of products for the market. The Smithsonian identifies the resulting surplus as a key part of the crash: a business built around continually adding games could produce more cartridges than buyers could sustain.
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3. Supply exceeded sustainable demand
The central commercial mismatch was not simply that there were many games, but that the market accumulated more supply than it could absorb. The Smithsonian describes a surplus as a major reason for the serious downturn. It does not provide a verified market-wide inventory total or sales ratio, so more precise figures would overstate what is established.
4. Game and console performance was uneven
The Computer History Museum attributes the depressed American electronic-game market to a glut of poorly performing games and consoles. HISTORY also describes an oversupply of over-hyped, low-quality games. Quality problems mattered as one part of the wider glut, not as a sufficient explanation on their own.
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- Officially licensed Atari titles. Titles include Asteroids, Centipede, Millipede, Breakout, Missile Command, Crystal Castles and many more. Game save options.
- Packed with over 200 built-in Atari games + bonus titles. Pac-Man & Galaga not included. Full Game list listed below.
- Includes Atari console, games instructions, 2 wireless joysticks, USB power cable, HDMI cable, and user manual. System connects directly to TV.
- Includes two 2.4 GHz wireless joysticks, inspired by the original Atari joysticks, include paddles for paddle games like Breakout, Warlords and many more.
- User Guide Languages: English, French, Spanish, Italian, Portuguese, German, Dutch, Japanese and Arabic. Dynamic RGB LED lights.
5. A crowded catalog made purchase decisions harder
Inference: When supply is crowded and performance uneven, buyers have a harder time identifying which games are worth their money. The cited museum accounts establish the glut and uneven performance, but they do not report a consumer survey measuring confusion or how it changed buying behavior.
6. Atari’s high-profile setbacks weakened confidence
Atari’s costly E.T. the Extra-Terrestrial license became a prominent commercial disappointment. The Smithsonian says the game underperformed against its break-even target and that stores received customer returns; it treats the result as one contributing factor to the crash. The episode added to doubts in a market already facing broader supply and performance problems.
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- · This product features retro classic video games. Please note that the sound and picture displayed on your TV may not match the quality of modern technology.
- Video game console with 130 Built-In games, including Atari 2600 classics like Asteroids, Centipede, and Missile Command, as well as other legends like Activision Pitfall and River Raid. Refer to the uploaded game list picture to find games of interest.
- This is a mini console, significantly smaller than the original Atari console. HDMI video output (720P) Plug & Play on HD TV (HDMI cable included). Save/Load/Rewind all games/Powered by Micro USB (adapter included).
- The joystick is wired, not wireless, and includes red buttons on the side. There are no additional buttons. Wired paddles may not have the flexibility to move to the side of the TV, but this is consistent with the original gaming experience.
- Please review full game list. For better gaming experience, please update the firmware for the product as soon as you plug the item in.
7. E.T. became a symbol that can distort the story
The Smithsonian reports that Atari needed to sell four million E.T. cartridges to break even on the expensive license. More than one million customers bought the game, but sales fell far short of that target, and stores received customer returns. Those figures help explain why the cartridge became emblematic of the period, but the Smithsonian identifies it as one contributor—not the sole cause of the crash.
The Smithsonian collection record identifies the Atari 2600 E.T. the Extra-Terrestrial cartridge and records that Atari buried millions of cartridges in El Paso in 1983 to clear warehouse inventory. The record supports the scale of the disposal only as “millions”; it does not establish a more exact count.
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- Builds on the Legacy: The new Atari 2600+ builds on the original machine with modern quality of life features such as HDMI output, USB power and multiple screen resolutions, and includes an exact replica of the original CX40+ Joystick.
- Backwards Compatible: The cartridge slot is backwards compatible with hundreds of original Atari 2600 and 7800 games. The ‘10 Games in 1’ cartridge includes iconic games such as Adventure, Combat, Dodge ‘em, Haunted House, Maze Craze, Missile Command, Volleyball, Surround, Video Pinball and Yars’ Revenge.
- Look and feel of the 80s: The Atari 2600+ has been lovingly crafted using modern technology, from the movement of the joystick to the resistance on the switches, the machine incorporates many of the original key features that were such a hit with fans. It also includes the authentic woodgrain outer shell finish.
- Games Included: Adventure, Combat, Dodge 'Em, Haunted House, Maze Craze, Missile Command, Realsports Volleyball, Surround, Video Pinball, Yars' Revenge
- Includes: Atari 2600+ Video Game System, CX40+ Joystick controller, 10 games in 1 cartridge, HDMI cable, and USB power cable, but does not include a USB wall charging plug for your outlet. You’ll need to pick up a 1A USB power adapter if you don’t have an extra one at home.
8. Home computers offered more than games
Consoles faced competition from home computers such as the Apple II, Radio Shack’s TRS-80 and Commodore 64. The Smithsonian notes that a versatile computer could play games and run other programs, making it seem like a more logical purchase to some households than a gaming-only system.
| Option | What it offered | Why it mattered |
|---|---|---|
| Dedicated console | Gaming through a console and its compatible cartridge catalog | Its value centered on games, so a crowded or disappointing catalog could weaken the case for buying one. |
| Multipurpose home computer | Games as well as other programs | The Smithsonian describes this broader use as a reason a computer could seem like a more logical purchase. |
9. Returns and excess inventory added pressure
The Smithsonian documents customer returns of E.T. cartridges and the removal of millions of cartridges from Atari’s warehouse through the 1983 El Paso burial. These examples show how disappointing sales and excess inventory could become tangible costs. The cited evidence does not establish general retailer ordering practices or return policies across the industry.
10. The pressures reinforced one another
Inference: The downturn is best understood as several risks converging. More systems and games expanded supply; surplus and uneven performance made the market harder to sustain; visible failures and returns strained confidence; and computers offered an alternative use for household spending. The sources describe these pressures but do not measure their individual causal weight.
Independent reader supportYour contribution helps us test, update, and keep practical guides available for everyone.Did E.T. really cause the video game crash?
No. The Smithsonian calls E.T. one contributing factor. Its commercial underperformance and returns made it a memorable example of the risks in the market, but the broader explanation includes cartridge surplus, poorly performing games and consoles, and competition from home computers.
Was the 1983 video game crash worldwide?
No. “Video game crash of 1983” is shorthand for a downturn focused on the North American home-console and American electronic-game market. It does not mean gaming disappeared worldwide or across arcades, computers and every other platform. The Smithsonian describes a period from 1982 to 1985, while the Computer History Museum characterizes the American market as depressed since 1983.
Quick Recap
Sources
- National Museum of American History, Smithsonian Institution: “From landfill to Smithsonian collections: ‘E.T. the Extra-Terrestrial’ Atari 2600 game.” Supports the break-even and sales figures, returns, and E.T.’s role as one contributing factor.
- National Museum of American History, Smithsonian Institution: “Video Game Cartridge, E.T. the Extra-Terrestrial.” Identifies the cartridge and records the 1983 El Paso burial of millions of cartridges.
- National Museum of American History, Smithsonian Institution: “Video Game History.” Supports the console and cartridge context, surplus and competition from versatile computers.
- Computer History Museum: “Graphics & Games | Timeline of Computer History.” Describes the depressed American electronic-game market and the glut of poorly performing games and consoles.
- HISTORY: “Video Game History – Timeline & Facts.” Provides secondary corroboration on oversaturation, computer competition and an over-hyped, low-quality game surplus.
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