The current situation reminds me a lot

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Shishirgano9
Posts: 460
Joined: Tue Dec 24, 2024 3:20 am

The current situation reminds me a lot

Post by Shishirgano9 »

The crash of the American video game industry 30 years ago. Atari had similar problems with their VCS home console. Thanks to a court decision that allowed other companies to manufacture and sell game cartridges for Atari's console, the market was flooded with bad games in 1983. It was impossible for consumers to judge the quality of these games before making a purchase, which led to a very strong reduction in value in the minds of buyers. The product became junk. Combined with some massive bad decisions on Atari's part, this ultimately led to the bursting of the video game bubble.

At least until the Japanese company Nintendo, which had employment database learned from the mistakes of the Americans, reopened the market in 1985. Part of the strategy was to strictly regulate the number of games released in order to prevent a decline in value like in previous years.

Of course, the comparison with today is a bit flawed, if only because mobile apps, unlike the old video game modules, have no costs for duplication. But it also shows that an offer that is too large and confusing carries the risk of causing the market to collapse under its own weight. Especially if it leads to customers no longer seeing much value in the apps.
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