The North American video game crash of 1983 ( also known as the North American video game crash of 1984 ) was a major event in the history of video games where the North American video game industry had crashed . The North American video game crash ( sometimes known as the Atari Debacle or the video game crash of 1983 and 1984 because it was in those years that the full effects of the crash became apparent to consumers ) began on June 21 1982 and brought an abrupt end to what is considered the second generation of console video gaming in North America . It almost destroyed the then-fledgling industry and led to the bankruptcy of several companies producing home computers and video game consoles in North America .