Technology

Atari Crash of 1983: Causes, Impact & Gaming's Comeback

The Atari crash of 1983 was a collapse of the North American home video game console market. Too many consoles and cartridges, uneven game quality, overstocked…

Swipe to explore ›
AiTimeline Home
Warner buys Atari

A media giant backs games

Warner's money let Atari finish and launch its home console, and made Atari's later losses Warner's losses.

AiTimeline Home
The VCS

Atari 2600 goes on sale

Interchangeable cartridges: one console, a growing library of games. It sold an estimated 30 million units.

AiTimeline Home
Activision

The first third-party publisher

Former Atari programmers proved anyone could make 2600 games. Dozens of firms followed, with no gatekeeper.

AiTimeline Home
Space Invaders

The first million-seller

The arcade port helped double the console's installed base to over 2 million in a year.

AiTimeline Home
Pac-Man

A hit that disappointed

About 8 million copies sold, but players said it looked and played little like the arcade game.

AiTimeline Home
E.T.

Made in just over five weeks

No. About 4 million were made and many went unsold, but the market was already slowing. It became the symbol.

AiTimeline Home
The warning

Warner shares plunge

Warner said Atari had missed its targets. Its shares fell by about a third in the next session.

AiTimeline Home
Price war

Computers near console prices

Commodore cut the C64 to $300. A machine for games, school and work cost little more than a console.

AiTimeline Home
The landfill

Unsold stock buried

About 728,000 cartridges of many titles, by the estimate of the manager who oversaw it. Atari lost about $536 million in 1983.

AiTimeline Home
The sale

Atari is split and sold

Commodore founder Jack Tramiel bought the consumer business for about $240 million. Warner kept the arcades as Atari Games.

AiTimeline Home
NES

Nintendo revives consoles

Licensed games only, a Seal of Quality, a lockout chip and a five-games-a-year limit. National launch in 1986.

AiTimeline Home
The dig

Landfill legend tested

About 1,300 cartridges of many games, including E.T. One is now in the Smithsonian.

AiTimeline Home

Want the full timeline?

Read the complete story, FAQs and key facts.

AiTimeline Home