
In 1983, the North American video game industry experienced a major “crash” due to a number of factors, including an oversaturated game console market, competition from computer gaming, and a surplus of over-hyped, low-quality games, such as the infamous E.T., an Atari game based on the eponymous movie and often considered the worst game ever created. Microsoft’s release of its first Flight Simulator game.Nintendo’s creation of Donkey Kong, which introduced the world to the character Mario.The introduction to the United States of Japan’s hugely popular Pac-Man.The launch of Activision, the first third-party game developer (which develops software without making consoles or arcade cabinets), in 1979.


In 1977, Atari released the Atari 2600 (also known as the Video Computer System), a home console that featured joysticks and interchangeable game cartridges that played multi-colored games, effectively kicking off the second generation of the video game consoles. Atari settled and became an Odyssey licensee over the next 20 years, Magnavox went on to win more than $100 million in copyright lawsuits related to the Odyssey and its video game patents. Magnavox, along with Sanders Associates, would eventually sue Atari for copyright infringement.
