The Fall of the Home Video Game Market in 1982

The home video game market in 1982 experienced a rush of competition, resulting in an abundance of low-quality games and consoles flooding the market. The oversaturation led to a lack of consumer trust and a decline in sales. The market size dropped by 97% within two years, causing significant losses for companies like Atari, Warner Brothers, and Mattel. The home video game industry became decimated, leading to the famous burial of unsold Atari game cartridges. The overproduction and poor quality of games, coupled with a lack of consolidation in the market, ultimately led to the collapse of the industry.

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