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Ah, the American arcade.
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To preserve these articles as they originally appeared, The Times does not alter, edit or update them.
Occasionally the digitization process introduces transcription errors or other problems.
Please send reports of such problems to The boom is over for the once high- flying world of video games.
The electronic centipedes, outer space invaders and spooky goblins that only a year ago seemed to have an extraterrestrial grip on the play hours of America's children are consuming each other like so many Pac-Men.
Dozens of the game makers that rushed into the field last year have dropped by the wayside, their visions of high profits proving to be as imaginary as the fantasy worlds pictured on the game screens.
Though it once appeared that children would never stop zapping asteroids and blowing up tanks, industry people say that many youngsters seem to have become jaded by Donkey Kong and Chopper Command and have switched to home computers or returned to traditional, nonelectronic fun.
The result has been a jolting upheaval for a leisure diversion that five years ago barely existed and one year more info seemed on an unstoppable roll.
As a group, video game manufacturers are expected by industry analysts to lose hundreds of millions of dollars on game consoles and cartridges this year.
Thousands of jobs have been eliminated.
Retail merchants, stuck video games arcade crown casino bloated inventories of unsold games, have slashed prices and are praying for a merry Christmas.
Hundreds of video game parlors have unplugged their machines and closed down.
Too many machines are chasing too few quarters.
In the early 1970's, demand for C.
But the craze subsided almost as swiftly as it arose.
Which is not video games arcade crown casino relegate Zaxxon and Berzerk to the same fad graveyard occupied by hula hoops and Pet Rocks.
Some 15 million game machines are plugged into America's televisions and it seems farfetched to expect everyone to drop their joy-sticks and toss them into the attic.
The razors are already sold.
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It seemed like only yesterday that the country was swept up in the belief that video games were seizing control of children's minds.
Fear of Becoming Addicted The rapid spread of the games triggered fears among many parents that there was something unhealthy about their children captivated for hours before the television screen, fighting imaginary wars and smashing apart brick walls.
Worried citizens in a number of towns managed to get ordinances passed outlawing game parlors or limiting the hours during which school-age children could play.
All of the outcry may have been for nothing.
Some children, fickle as ever, have cut down their game playing for the most child-like reason of all: boredom.
They're all the same.
You kill the invaders and that's it.
Only a year ago, Raymond Kassar, then chairman of Atari, the video game king, was saying that saturation of games would not come until half of all television households had them and that the ''maturity level of video games video games arcade crown casino be beyond anyone's wildest dreams.
Kassar resigned his post, his company awash in red ink.
The losses of game makers have been huge.
Imagic, once one of the fastest-growing makers of game cartridges, laid off 40 of its 170 employees three weeks ago and has sold off excess inventory at discounted prices.
Many companies have simply vanished.
There are two parts to the home- game business: the game-machine modules, or hardware, which consist of compact plastic boxes that are linked to televisions by long cords, and the cartridges, or software, that are inserted into the modules.
Since game machines are priced lower, he thinks dollar revenue could plunge video games arcade crown casino 50 percent or more.
Using Up Inventory Industry people are still expecting 80 million to 90 million game cartridges to be sold, up from about 65 million last year.
Kirby expects orders from manufacturers to be off about 20 percent, since a lot of the sales will be from inventory sitting on shelves from last year.
Because of deep discounting, Mr.
The chaos in the business, to a large extent, has arisen because of unrealistic expectations.
About 100 companies scrambled to get a foothold in the promising industry.
They churned out a bewildering number of games, many of them nothing more than uninspired imitations, what toy people call knockoffs.
Some companies came and went within a few months.
When there is a hit game, the whole market heats up.
Unlike last year, when Pac-Man, Defender, Pitfall and Donkey Kong all sold well, there has been no big hit this year that children clamored for.
Closing Their Doors Video game parlors have also suffered.
Between 1980 and 1982, arcade parlors doubled to hard rock casino miami games />Industry analysts estimate that more than 1,500 of them have closed this year.
Kirby of Sanford Bernstein estimates that revenue at the parlors is off 40 percent and profits down 75 percent.
Arcade operators are hoping their businesses will be invigorated by the emergence of a new generation of games that use laser disks to project color pictures onto the screen just like a movie.
The first of these is Dragon's Lair, manufactured by Cinematronics, which is attracting players at many parlors.
Still, a half-dozen or more laser-disk machines are expected to be introduced shortly.
Parlors that are efficiently operated and marketed, however, report that they are still ahead of the game.
Arnold Kaye, the owner of Arnie's Place in Westport, Conn.
He has patterned his parlor after a casino.
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And there are 100 games to pick from.
Prices have been slashed to bargain-basement levels.
Game modules are commonly being sold below cost as so-called loss-leaders.
Cartridges are being marked down by 25 percent or more at many outlets.
Three-Year Projection ''I think video games are a fad tha t've been eclipsed by computers,'' said Mr.
A little over a year ago, K Mart, the nation's second-biggest retailer after Sears, Roebuck, opened video game rooms in 200 of its stores.
Results, however, have been poor.
All of the game rooms are video games arcade crown casino phased out, mainly to make space for home computers and other home electronic products.
Still, nobody is willing to write off video games altogether.
It's a tremendous, tremendous business for the years ahead.
Kids will go back to chess or play sports and video won't be as much of an obsession, because it's not being foisted on them all the time.
So they may go see a movie or shoot some baskets instead of just playing video games.
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