Competitive Dynamics in Home Video Games (A): The Age of Atari
Tells the story of the rise and fall of Atari Corp., the dominant player in arcade and home video games in the 1970s and early 1980s. During this period, Atari grew from a $500 initial investment into a $2 billion in revenues per year enterprise, becoming the fastest growing company in the history of the United States. The wild ride came to a crashing halt in 1983, however, when the bottom dropped out of the video game market, partly as a result of Atari's actions (or inaction). This is part of a case series examining the competitive dynamics in the home video game industry from 1970 into the new millennium. A rewritten version of an earlier case.