Only a year old, Texas-based video game software company Games By Apollo folds after most of its programmers defect to form their own company. With most of the games produced by Apollo now going for bargain-basement retail prices, and none of them exactly topping the sales charts, Games By Apollo becomes a prime specimen of a company that formed simply to grab a piece of the Atari VCS fad.
Activision releases the River Raid cartridge for the Atari VCS home video game system.
Activision releases the Dragonfire cartridge for the Atari VCS home video game system.
Imagic releases the Dragonfire cartridge for the Intellivision home video game system.
Sega releases the arcade game Congo Bongo in American arcades. Using the same graphical approach as Zaxxon, Congo Bongo is a 3-D take on the oddly familiar theme of a man climbing a structure to capture an ape.
Upstart video game manufacturer Mythicon releases Sorcerer for the Atari 2600. One of only three games issued by Mythicon before it goes out of business, and considered one of the worst games ever made for the 2600, Sorcerer is designed to be sold at a low price point at drug stores and other retail venues not normally associated with video games.
Midway releases the arcade game Discs Of Tron in American arcades. The second coin-op game based on the movie Tron, this game was originally devised as an additional “stage” of the original Tron coin-op until designers split it off into its own game. The “environmental” cabinet, allowing players to stand inside the brightly black-lit game, becomes a legend of arcade architecture.
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Segaa releases the arcade game Astron Belt in American arcades. The first game to go into development specifically as a laser videodisc game, Astron Belt is a minor hit but it overshadowed by the Disney-esque visuals of another laserdisc coin-op, Dragon’s Lair.
Segaa releases the arcade game Star Trek: Strategic Operations Simulator in American arcades. The vector graphics coin-op, simulating the “tactical views” seen on the Enterprise in the first two Star Trek movies, is the first officially licensed Star Trek video game. It also reflects some corporate synergy: Sega was, at the time, also owned by Paramount Pictures parent company Gulf + Western.
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Imagic releases the No Escape! cartridge for the Atari 2600 home video game system.
Activision releases the Happy Trails cartridge for the Intellivision home video game system.
Mere weeks before Return Of The Jedi arrives in theaters, Atari releases the arcade game Star Wars in the United States, in both upright (standing) and cocktail (sit-down) models, complete with almost-intelligible sample voices from the movie of the same name. Players strafe the Death Star at lightning speeds (thanks to vector graphics, which can draw faster than full-screen raster graphics) after fending off TIE fighters. The Force is with us… for 25 cents.
More about Star Wars video games in Phosphor Dot Fossils
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Gottlieb introduces the arcade game Krull in the United States, based on the much-hyped fantasy movie of the same name.
More about Krull in Phosphor Dot Fossils
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North American Phillips (formerly Magnavox) announces at the summer Consumer Electronics Show that it has put the Odyssey2 video game console’s slightly more advanced successor, the Odyssey3 Command Center, on hold indefinitely – just six months after unveiling it – rather than meeting its July release date. What Phillips doesn’t announce is that active game development on the Odyssey2 has also been halted; the company’s game designers are now focused on a new effort to publish games for non-Odyssey consoles under the Probe 2000 name.
Broderbund Software introduces the earliest versions of Doug Smith’s computer game Lode Runner to hit the market. Inspired by the obscure arcade game Space Panic, Lode Runner gives players a weapon that digs rather than directly disabling enemies. A game franchise spanning multiple platforms and decades is spawned.
The ongoing race to improve arcade game graphics takes a sudden turn with the introduction of the first laserdisc-driven game to hit arcades, Dragon’s Lair. Featuring animation by former Disney protege Don Bluth, and a branching structure that depends heavily on players performing the right actions at just the right times, Dragon’s Lair is rigid in game play, but breathtaking in beauty; most arcade operators set the price for a single game at 50 cents just to offset the cost of the machine – and players gladly wait in line just to watch others guide Dirk the Daring through the castle.
A latecomer to the glut of companies trying to provide software for the Atari 2600 video game system, US Games is closed down by its parent companies, Quaker Oats and Fisher-Price. Barely a year old, and with only 14 titles released, US Games is dubbed “an experiment” – but apparently not an experiment capable of surviving in the rapidly contracting video game market.
Activision releases the Robot Tank cartridge for the Atari 2600 home video game system, Activision’s answer to Atari’s home verison of Battlezone. As usual, Activision raises the ante with such features as a night vision mode and multiple targets.
With the video game industry crash taking its toll, and Atari’s financial status in free-fall, CEO Ray Kassar resigns from the company shortly after a disastrous earnings report showing two straight quarters of multi-million dollar losses – the first Warner Communications suffered since the year before it bought Atari and installed Kassar as CEO. Kassar has also drawn fire for accusations that he sold thousands of shares of his Warner stock minutes prior to the fateful December 1982 announcement that heralded the beginning of the industry’s downturn. Kassar is replaced by former Philip Morris marketing VP James Morgan, who has no prior experience in the consumer electronics field; his previous experience has been in tobacco marketing.
In Japan, Nintendo launches the Famicom (Family Computer) home video game system, with a few games available at the product’s launch, all of which are ports of popular Nintendo arcade games. Within months, major technical problems are reported and faulty consoles are returned, and Nintendo discovers that a design flaw is responsible. All Famicom units are recalled and refurbished at the company’s expense. In two years, the console will be launched in North America as the Nintendo Entertainment System, almost single-handedly reviving the video game industry around the world.
After dismal second-quarter earnings reports lead to weeks of massive sell-offs of Warner Communications and Texas Instruments stock (among many other companies tied into the field of computer and video games), investment firm Prudential-Bache Securities – usually a staunch supporter of tech stocks – kicks the industry crash into high gear with a simple warning: do not buy. Stock prices for video game and computer companies tumble precipitously for the remainder of 1983, driving some of the industry’s longest-lived players out of the business (or out of business altogether). Even relatively stable stocks such as Apple and Coleco take a major hit; computer manufacturers and arcade-only game makers who have made it through the first half of 1983 unscathed find their stock valued at half of what it was worth just weeks before. In many respects this marks the end of the home-grown American video game industry: the next wave of successful products will arrive from Japan, and American software houses will rely on those machines to run their products.
Software company Imagic, which started out marketing games for the Atari VCS before branching out into the Intellivision, Colecovision, home computer and even Odyssey2 markets, nixes plans to sell public stock in the company. Shortly afterward, 40 of Imagic’s 170 employees are laid off, with every indiciation that more employees will follow as the company tries to stay afloat. Potential investors are told that Imagic’s initial public offering has been delayed until early 1984, but stock in the company is never sold.
In what is perhaps the most tangible event of the entire video game industry crash in 1983, Atari dumps 14 truckloads of unsold game cartridges and other parts in the Alamagordo, New Mexico city dump, with security guards standing by to keep curious onlookers from grabbing any “souvenirs” before concrete is poured over them. The unsold merchandise is stock left over from the closure of Atari’s cartridge assembly plant in El Paso, Texas. Second-quarter earnings report reveal that Atari has lost over $300,000,000 since the beginning of 1983.
Months after his resignation as CEO of Atari, Ray Kassar is hit with charges of insider trading by the Securities & Exchange Commission. At issue, according to the SEC, is the sudden sale of 5,000 shares in Atari’s parent company, Warner Communications, 23 minutes before a statement was issued indicating that Atari would not meet shareholders’ expectations in the fourth quarters of 1982. Other Atari executives are also charged with similar last-minute sell-offs.
The third and final game in Epyx’s “Apshai trilogy” is released for various home computer platforms. Gateway To Apshai continues the trend of pushing traditionally turn-based computer RPGs toward real-time action games, a trend that will culminate in the smash success of the unrelated NES game The Legend Of Zelda years later.
Konami introduces the arcade game Track & Field in the United States, a multi-event game built around a summer Olympic theme. Due to the nature of the game’s control scheme, the Track & Field coin-ops take a huge amount of abuse as players pound the action buttons to determine the “intensity” of their on-screen athletes’ movement.
Having claimed from the start that a computer add-on for its Colecovision console would be forthcoming, Coleco delivers on the promise with the first shipments of Adam home computer systems. Compatible with Colecovision games, Adam proves to be an immediate setback to the company due to serious technical problems and product failures, leading to a startling fourth-quarter shortfall at the end of 1983.
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Konami introduces the arcade game 
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