The video game crash of 1983 was a large-scale recession in the video game industry that occurred from 1983 to 1985, primarily in the United States. The crash was attributed to several factors, including market saturation in the number of video game consoles and available games, many of which were of poor quality. Waning interest in console games in favor of personal computers also played a role. Home video game revenue peaked at around $3.2 billion in 1983, then fell to around $100 million by 1985. The crash abruptly ended what is retrospectively considered the second generation of console video gaming in North America. To a lesser extent, the arcade video game market also weakened as the golden age of arcade video games came to an end.

The Atari 2600 is a home video game console developed and produced by Atari, Inc. Released in September 1977 as the Atari Video Computer System, it popularized microprocessor-based hardware and games stored on swappable ROM cartridges, a format first used with the Fairchild Channel F in 1976. The VCS was bundled with two joystick controllers, a conjoined pair of paddle controllers, and a game cartridge—initially Combat and later Pac-Man. Sears sold the system as the Tele-Games Video Arcade. Atari rebranded the VCS as the Atari 2600 in November 1982 alongside the release of the Atari 5200.