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by a-dub 1373 days ago
i thought there was an industrywide videogame crash in the early 80s that was blamed on the atari consoles being too open. (everyone was making cartridges, even companies like ralston-purina, quality fell under the flooded market and consumers gave up).

my understanding is that this gave rise to nintendo's tight control over developer licensees while atari was sold off and pivoted to home computers (specifically the st line) under jack tramiel.

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The story is more complex than that, Atari split in 2 (the games company and the consumer electronics company) and neither really exist anymore (and haven't for a long time now). But basically yes - they never replicated the success of the VCS and arcades stopped being a major part of the industry in the 90s. All of Atari's biggest hits were in the 70s and (early) 80s.
it's really complex, and quite interesting!

"Video game crash of 1983 - Wikipedia" https://en.m.wikipedia.org/wiki/Video_game_crash_of_1983