this post was submitted on 18 Feb 2026
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[–] DahGangalang@infosec.pub 1 points 2 hours ago (2 children)

Second Gaming Crash

Wait, what was the first gaming crash?

[–] ZILtoid1991@lemmy.world 7 points 2 hours ago (1 children)

The Atarri one, except there were multiple smaller crashes in gaming history plus effects of the economy on the gaming market.

The mini-crashes include:

  • American home computer bubble burst of 1983-84
  • Some British game publishers go bankrupt, then immediately their former employees form new companies
  • Game developers betting big on MMO style games, only for them to realize no one wants to rent their games
  • Paid smartphone games falling out of favor due to pay2win slop
[–] DahGangalang@infosec.pub 1 points 2 hours ago

Oh, yeah, Atari would have been before my time, so don't feel so bad about not thinking of that one.

I figured it was in reference to the MMO craze dying down, but that felt more like a strong speed bump than a crash.

[–] Jesus_666@lemmy.world 3 points 1 hour ago
  1. The video game industry effectively collapsed entirely.

There were something like 14 major console systems on the market, all incompatible with each other. None had decent quality control for the games. At the same time home computers were starting to be a thing so the hobby money started going in that direction.

In sum that caused an effectively total collapse of the industry in the USA. It took until the late 80s for the market to start to recover when Nintendo released a new console. Notably, this console was not marketed as a game console – it was the Family Computer in Japan and the Nintendo Entertainment System (with a shell deliberately styled like a VCR) in the West.

Several major companies left the market (like Magnavox or Coleco) or were unable to compete when the market recovered (Atari).