I’ve posted content from Stuart Brown of Ahoy before, and in a recent mini-documentary, he briefly covers the history of video games. He specifically details the gaming industry in the ’80s, where everything was fine at first. Then things turned for the worse where Atari, the gaming leader at the time, was met with a massive decline and a growing financial loss. Many declared gaming was dead, but while the industry was experiencing massive decline in the U.S., in other countries, it was booming.
The systems just weren’t selling. Unsold cartridges were being returned to stores in droves. Instead of meeting their ambitious growth predictions, revenue had dropped 50 percent. Stock prices plunged and a panic hit Wall Street. Confidence in the nascent industry evaporated. Total losses for the year stacked up to half a billion dollars. No amount of marketing could save Atari from the truth: it was game over.
— Stuart Brown, Ahoy