The business side was absolutely destroyed. Atari was broken up and sold off by its parent company. Every other 3rd party developer went out of business (or too

The business side was absolutely destroyed. Atari was broken up and sold off by its parent company. Every other 3rd party developer went out of business (or took enormous losses and closed their game division) except for Activision, which survived by the skin of its teeth by pivoting to computer games and spent years digging itself back up to profitability. Retailers lost so much money that the whole concept of "video games" became anathema, which is why Nintendo had to pitch it as a general "entertainment system" and sell it with the light gun and ROB the Robot (basically as decoys for the retail buyers) just to get a tiny foothold back on retail shelves in their NYC test market and prove out the market again.