Created the first killer home gaming console with interchangeable cartridges. The Atari 2600 quadrupled sales after licensing Space Invaders, hitting 10 million consoles sold by 1982. Revenue jumped from $75M to $2.2B in three years — a 2,900% increase.
Warner starved Atari to prop up struggling divisions. Parent company Casar alienated top programmers who left to form Activision. Market flooded with 158 third-party developers making terrible games. Then Atari rushed Pac-Man and ET to market — both disasters that torched the brand's reputation for quality.
Lost $536M in 1983. Video game industry crashed 97%. Sold to Jack Tramiel, then merged with failing hard drive maker, then sold to Hasbro for $5M. Now just a nostalgia licensing brand.
