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The Catastrophic Collapse of the Video Game Market
The video game market, once valued at $3.2 billion in 1982, plummeted to just $100 million by 1985, marking a colossal 97% drop in market size within two years. This led to massive losses for third party independent software game developers, hardware companies like Atari, Warner Brothers, and Mattel, due to the considerable inventory tied up in physical packaged goods that could no longer be sold.