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Why did Atari fail?

Why did Atari fail? In 1986, Nintendo president Hiroshi Yamauchi noted that Atari collapsed because they gave too much freedom to third-party developers and the market was swamped with rubbish games. In 1983, rumors circulated: Atari was bankrupt, and was dumping truckloads of games into a New Mexico landfill. Victim to the Video Game Crash,

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