Gaming is one of the biggest industries in the world, trumping music and Hollywood alike. What you may not know is that it wasn't always as affluent as it is today. If you look back more than 3 decades ago, you'll see that it was in rough shape following the event now known as the video game crash of 1983. For those that would like to know more about this event, financially or otherwise, here are some details provided by Bob Jain.
In 1983, profits in terms of video games hit a high point at $3.2 billion, which would make one think that this industry would be too big to fail. The problem with this is that, as time went on and more competitors entered the market, general interest in gaming fell. A couple of years later, in 1985, the aforementioned profits saw a considerable drop to $100 million. Not only were gamers uninterested, but stores struggled to sell the inventory they had.
When it comes to the reasons why the video game crash occurred, there are many points to cover. According to the Robert Jain and other such names in finance, oversaturation in the market made it difficult for gamers to keep up, as they couldn't feasibly spend money on multiple systems. Furthermore, the libraries of games on said systems were too alike to warrant additional purchases. With a crowded market, it's easy for the average consumer to feel overwhelmed.
Another common cause that's looked to, as far as the video game crash is concerned, is the decreased quality of the games themselves. "E.T. the Extra-Terrestrial" for the Atari 2600 is a popular example, but it's far from the only one. As a matter of fact, these products left the buyers with sour tastes in their mouth. Eventually, it reached a point where the people that enjoyed this hobby simply couldn't justify spending money on shoddy entertainment.
Gaming would soon gain popularity and favor once more, as the Nintendo Entertainment System hit the scene. With a litany of games being released for the system, the original Super Mario Bros. leading the charge, it was clear that the industry would recover. Now that the industry in question is as popular as ever, it's hard to believe that there was even a video game crash in the first place. History will show us, though, that it left a lasting impression.
In 1983, profits in terms of video games hit a high point at $3.2 billion, which would make one think that this industry would be too big to fail. The problem with this is that, as time went on and more competitors entered the market, general interest in gaming fell. A couple of years later, in 1985, the aforementioned profits saw a considerable drop to $100 million. Not only were gamers uninterested, but stores struggled to sell the inventory they had.
When it comes to the reasons why the video game crash occurred, there are many points to cover. According to the Robert Jain and other such names in finance, oversaturation in the market made it difficult for gamers to keep up, as they couldn't feasibly spend money on multiple systems. Furthermore, the libraries of games on said systems were too alike to warrant additional purchases. With a crowded market, it's easy for the average consumer to feel overwhelmed.
Another common cause that's looked to, as far as the video game crash is concerned, is the decreased quality of the games themselves. "E.T. the Extra-Terrestrial" for the Atari 2600 is a popular example, but it's far from the only one. As a matter of fact, these products left the buyers with sour tastes in their mouth. Eventually, it reached a point where the people that enjoyed this hobby simply couldn't justify spending money on shoddy entertainment.
Gaming would soon gain popularity and favor once more, as the Nintendo Entertainment System hit the scene. With a litany of games being released for the system, the original Super Mario Bros. leading the charge, it was clear that the industry would recover. Now that the industry in question is as popular as ever, it's hard to believe that there was even a video game crash in the first place. History will show us, though, that it left a lasting impression.
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If you would care to know how to improve your financial situation, consult Bob Jain now.. Free reprint available from: The Impact Of The Video Game Crash Of 1983, With Bob Jain.
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