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The perils of overfunding and overcrowding
Overcrowding and overfunding led to a situation in which the economic laws were broken, and there was excessive incentive to create and release products without quality consideration. This resulted in a rapid and unsustainable growth of the home video game business, which eventually led to its collapse, with the market size shrinking 32 times in just three years, from $3.2 billion in 1982 to $100 million in 1985, causing the entire category to disappear.