How Pitfall!'s David Crane Weathered the Video Game Crash

Pitfall! creator David Crane not only weathered the video game crash of the early 1980's but also saw it coming. The entire interview is available on Gamasutra and is a pretty fantastic read. So what exactly caused the crash? Well Crane says that it was indirectly caused by Activision.

"The crash was largely caused by a glut of poor product," he explained. "In fact, Activision was the main cause -- although indirectly. Activision was a huge hit in the early '80s. We showed that you don't have to spend $100 million to produce a game console to make money in video games."

"In one six-month period, 30 new companies sprang up trying to duplicate our success," Crane said. "What they didn't realize is that our success was due to the best game designers in the world -- not just our business model. These companies had to make do with amateur game talent, and the products were mostly awful."

"We even predicted the crash," added Crane. "I remember saying that 'none of these companies will be in business in a year.' How prophetic. What we didn't realize is that each company already had a million game cartridges in their warehouse when they went under."

"It was the sale of these games by liquidators that flooded the market. They bought them out of bankruptcy for $3, sold them to retailers for $4, and the retailers put them in barrels at the front of the store for $5," he said. "When dad went in to buy junior the latest Activision game for $40, he saw that he could be a hero and get eight games for the same money. Sales of new games went to near zero."

Take a break and read the full Gamasutra feature.