Atari's E.T.: The Game That Crashed an Industry

Atari's E.T.: A Case Study in Quality Control and Market Failure The infamous Atari E.T. game, released in 1982, stands as a prime example of a commercial flop despite initial sales success. The game's poor quality led to widespread returns, significantly impacting Atari's reputation and contributing to the video game crash of the 1980s. The video essay by LukasG on Twitch highlights the lack of quality control and vetting processes at Atari as key factors in the game's failure. "They weren't properly vetting their games," LukasG explains, emphasizing the absence of a seal of approval or quality control that allowed numerous subpar games to flood the market. The resulting damage to Atari's relationships with retailers further exacerbated the situation. Retailers, burdened with unsold copies, were less inclined to support future Atari releases. This created a vicious cycle, impacting Atari's ability to release good games at a competitive cost. The video effectively illustrates how a combination of internal failures and market dynamics contributed to the downfall of a major player in the video game industry. The story of E.T. for Atari serves as a cautionary tale for game developers and publishers today, reminding them of the importance of rigorous quality control and maintaining strong relationships with retailers.