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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.
15:36
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Quick takeaways
- Atari's decline was primarily triggered by the rushed production of the E.T. video game, leading to poor sales and financial losses.
- The gaming market's shift towards personal computers and foreign competitors in the early 1980s highlighted the changing consumer preferences, further challenging Atari's dominance.
Deep dives
The Impact of the E.T. Game on Atari
Atari faced significant challenges following the release of the E.T. game in 1982, which is often cited as a major factor in the company's decline. The game's production was rushed, with the designer given only five weeks to create it to meet the holiday season demand, resulting in poor gameplay and high production costs. Despite the immense popularity of the E.T. movie, the game failed to resonate with players and only sold 2.6 million copies, far short of the 4 million needed to break even. This failure, combined with other missteps like a poorly received Pac-Man release, drove Atari into substantial financial loss and marked the beginning of its downward trajectory in the gaming industry.
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