Competitive Dynamics in Home Video Games (A): The Age of Atari

Case Solution

Peter J. Coughlan, Debbie Freier
Harvard Business School ()

It 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 that time, Atari went from an initial investment of $ 500 to a company with annual sales of $ 2 billion and became the fastest growing company in US history. However, the wild ride stalled in 1983 when the depression fell from the video game market, in part due to the actions (or inaction) of Atari. This is part of a series of cases examining the competitive dynamics in the home video game industry from 1970 to the new millennium. A rewritten version of a previous case.

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