Many businesses need to borrow money to keep a float, but when interest rates are high, banks generally do not lean money out to consumers or businesses who are leveraged up on debt. As a result some of these businesses find themselves unable to continue their operation and are forced to liquidate their assets and perhaps shut their doors.
In the early 1970s and 1980s, investors, banks, and even people in general thought that the video game industry was a fad. During this time, many games were being produced with low quality and low budget causing the already thrift tight consumers to shy away from video game purchases. Like today, the Americans are experiencing an all-time high of poverty, an all-time high of government assistance, a low labor participation rate in over 30 years, stagnant incomes, a disappearing middle-class, and finally with the exception of GDP and unemployment a majority of the economic data have had negative results last year. These are all telltale signs of a incoming recession.
In essence, the early 1980s recession is the main catalyst for the video game crash of 1983. If it wasn't for the recession I do not believe the industry would of crashed, or at least not as bad as it did. But if a recession was to occur in 2015 or 2016 I believe this recession will be much worst than the 1981 recession and have a much greater impact of the video game industry.
However, one thing I'd like to add. It is possible that the crash of the video game industry could be postponed in the event that the Federal Reserve or US government steps in and re-inflates the money supply to once again prop up the economy. If they do this, it will only make matters worst in the long run, but in the short run things may look to be fine and dandy. Especially for the average person who does not understand the consequences of printing money.
I conclude that the next gaming crash is on the rise, thanks to the incoming recession that is occurring. I believe video game sales along with general shopping sales will continue to decline. I also believe that this decline could put gaming companies in a tight spot, causing them to release more low quality titles. So if you're an avid gamer be prepared for the possibly of a terrible lineup in 2015 an the next gaming crash within a few years.
You've been warned.