The story is more complex than that, Atari split in 2 (the games company and the consumer electronics company) and neither really exist anymore (and haven't for

The story is more complex than that, Atari split in 2 (the games company and the consumer electronics company) and neither really exist anymore (and haven't for a long time now). But basically yes - they never replicated the success of the VCS and arcades stopped being a major part of the industry in the 90s. All of Atari's biggest hits were in the 70s and (early) 80s.