The Hustle Daily Show

The decline of Atari and their disastrous E.T. video game

Mar 14, 2025
The rise and fall of Atari takes center stage, spotlighting the infamous E.T. video game that marked a catastrophic shift in the company's fortunes. Rushed development and poor design decisions turned a promising concept into a monumental failure. The podcast also delves into how Atari's struggles paved the way for Japanese gaming giants like Nintendo and Sega. And, of course, there's the legendary tale of buried E.T. cartridges, a somber reminder of hasty choices in game production. Evolution in gaming is explored, contrasting the complexity of modern titles with the simplicity of the past.
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ANECDOTE

E.T. Game Flop

  • Atari's 1982 E.T. video game, rushed for Christmas release, flopped spectacularly.
  • Poor gameplay, high price, and Spielberg's involvement led to significant losses and returns.
INSIGHT

Market Shift

  • E.T.'s failure, along with other factors, contributed to Atari's decline and a market shift.
  • Japanese companies like Nintendo and Sega capitalized on this, dominating the console market for nearly 20 years.
ANECDOTE

E.T. Cartridges Buried

  • Unsold E.T. cartridges, rumored to be buried, were unearthed in a New Mexico landfill.
  • This confirmed the legend and provided a physical reminder of Atari's downfall.
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