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  1. Aug 23, 2023 · Why did Atari 2600 fail? Lack of consumer confidence. Prior to 1982, Atari was considered the dominant company in the home video game industry, but as described above, new players in the hardware market and the loss of publishing control caused the company to slip from its dominant position.

  2. Jun 1, 2021 · But most games developed for Atari were not Pac-Man-level quality, and that ultimately led to the platform’s demise. New research from Maryland Smith pinpoints the best strategies for today’s platforms to curate lots of high-quality content and avoid Atari’s fate.

    • Atari: A Failure in Three Acts
    • Early Failure: The Atari 2600 Era
    • Jack Tramiel: Savior Or Villain?
    • Atari’s Failings as A Computer Company
    • The Third Act: Video Games Again
    • Atari Today

    Atari, like some of its competitors, actually failed more than once. Like a Greek tragedy, Atari failed on three different occasions, and not necessarily for the same reason each time.

    Nolan Bushnell saw that he had something big with the Atari 2600, but didn’t think Atari could get there on its own. So to get more resources, he sold the company to Warner Communications, a huge media conglomerate. Initially this worked spectacularly, giving Atari the chance to sell 30 million consoles. Ultimately, the problem under Warner was tha...

    Jack Tramiel is a controversial figure in Atari circles. Commodore circles tend to hold him in higher regard, but there’s no doubt Tramiel was ruthless, difficult to work for, and he wasn’t as successful at Atari as he had been at Commodore. But having Tramiel at the helm at Atari meant not having to compete with him anymore. And at the time it loo...

    Atari’s 8-bit computers certainly weren’t bad, and Tramiel dusted them off, gave them a bit of a cosmetic redesign and relaunched them. It gave Atari something to sell while he waited for his team of engineers, a combination of Warner-era employees and ex-Commodore employees who followed him, to build the Atari ST, a new computer based on the Motor...

    While Jack Tramiel was trying to take over the computer industry with the ST, Nintendo and Sega brought the video game market back from the dead. Atari charged back into the market with a new, smaller-sized Atari 2600 and the reintroduced 7800, which was in most ways the console the 5200 should have been, and the XE Game System, which was the conso...

    Atari exists today as something of an undead brand. But it’s a shadow of its former self and has changed hands multiple times. Atari could have done some things differently, but in the end, Nintendo, Sega, and Sony were too hard to compete with in the video game market, and the IBM PC and Amiga and Mac were too hard to compete with in the computer ...

  3. Mar 26, 2024 · Lack of oversight allowed fly-by-night studios to jam Atari branding onto shoddy games they had barely play-tested, severely undermining consumer trust. By 1982 industry experts estimated just 10% of game releases would drive 75% of Atari 2600 revenues.

  4. Dec 22, 2021 · Atari failed because it was managed by Warner as a non-tech company. It did not see the need to create new and innovative products but looked at its machines as an unchangeable commodity. Warner divided up the company and sold its various parts.

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  5. Nov 21, 2023 · Atari’s failure to innovate and build upon its early success was a critical factor in its decline. Attempts to modernize the Atari 2600, like the “My First Computer” add-on, failed to resonate with the market.

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  7. Jun 21, 2018 · To top it all off, Atari set itself up for a colossal failure by producing some 12 million cartridges, even though there were only 10 million 2600 consoles in circulation at the time.

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