The
video game crash of 1983, known as
Atari shock in Japan, was a massive
recession of the
video game industry that occurred from 1983 to 1985. Revenues had peaked at around $3.2 billion in 1983, then fell to around $100 million by 1985 (a drop of almost 97 percent). The crash was a serious event that brought an abrupt end to what is considered the
second generation of
console video gaming in
North America.