The video game crash of 1983 was a significant downturn in the video game industry, primarily in North America. It was caused by an oversaturated market, with too many low-quality games and consoles flooding the market. Major companies like Atari faced massive losses, leading to a decline in consumer confidence and sales. As a result of the crash, many video game companies went bankrupt, and the industry experienced a sharp decline in revenue. This event led to a shift in the market, paving the way for new players like Nintendo to revitalize the industry with innovative products and quality games.