Video Game Crash!- Econ in Real Life

The video explores the economic impact of video games, starting with the rise of arcades and home consoles in the late 1970s and early 1980s. It discusses the market crash of 1983 due to oversaturation and poor-quality games, exemplified by Atari's ET game. Nintendo's strategic revival of the market with quality control and licensing is highlighted, leading to a resurgence in the late 1980s. The video concludes with the evolution of the market into an oligopoly with major players like Sony and Microsoft, and the rise of mobile gaming as a new competitor.

What was a major factor that led to the crash of the video game industry in the early 1980s?

• High-quality games from third-party developers

• An oversupply of low-quality games

• Lack of interest in video games

• Too few video game consoles available

How did Nintendo help revive the video game industry in the mid-1980s?

• By producing more games than any other company

• By allowing unlimited third-party game development

• By implementing strict quality control measures

• By reducing the price of their consoles

Which company introduced the PlayStation, a major competitor in the video game market?

• Sony

• Microsoft

• Sega

• Nintendo

What is a current challenge faced by the video game console industry?

• Lack of consumer interest in gaming

• Competition from mobile gaming

• High production costs of consoles

• Limited game titles available

What is the current market structure of the video game console industry?

• Monopoly

• Monopolistic competition

• Perfect competition

• Oligopoly