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North American video game crash of 1983

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The North American video game crash of 1983 was a major event in the history of video games where the North American video game industry had crashed. Many makers of home computers and video game consoles went bankrupt. Many business analysts thought that the video game industry would not last, and the crash lasted for several years. However, the Japanese company Nintendo introduced the Nintendo Entertainment System in 1985, which became very popular in 1987 and ended the crash.

There were several reasons for the crash, but the main reason was that companies were making many consoles and hundreds of games, most which were low quality. The video game version of ET: The Extra Terrestrial is often blamed for the crash.