4 ms·

That's very interesting, and the first time I've actually heard an explanation of the 1983 crash that makes sense. It's always described as "the games were so

• lordfrito 3y ago
  You see this alot in business... its why there are business cycles. The bad thing about "boom" markets is that you easily run the risk of building product the market doesn't need. You think it needs it, but it doesn't. So you overbuild without knowing it. Once the market figures this out, it is usually the same story. Something along the lines of "I don't need any more product, I have enough product on the shelf to last a year" etc. At this point you can't build anything more until the market recovers and the excess inventory is cleared out. This shuts down plants and is why people get laid off. The more you overbuild the longer the recovery. We're dealing with the recovery due to overbuilding due to COVID right now. In the case of 1983, it was a heck of a lot of overbuilding. Atari should be a case study in business school.