79. The Great Video Game Meltdown: 1983
Year: 1983 – 1985
Location: US, Japan
Company: Atari, other video game companies at the time
Estimated Damage Value: $3.1 billion*
Between 1983 and 1985, the gaming world witnessed a catastrophic event, often referred to as the ‘Atari shock’ in Japan. The industry’s earnings plummeted from $3.2 billion to a mere $100 million, marking a 97% drop. This dramatic decline was attributed to multiple factors, culminating in a disastrous ‘perfect storm’ for companies like Atari.

The video game downfall was precipitated by an oversaturated console market, loss of control over game publishing, internal rebellion within Atari, and the rise of personal computers. An overproduction of games, epitomized by the E.T. The Extra-Terrestrial fiasco, led to hundreds of thousands of unsold cartridges being buried in a New Mexico landfill, symbolizing the industry’s vast miscalculations.