I love these topics.
Another huge problem during the time was the large number of consoles around at the time, and the fact that their were no rules to the market. We had dog food companies making games about picking up dog poop it sounds as good as does. There was no internet and very few gaming related articles, so people went to the store having no idea what they were getting into. Making matters worse Galaga a good game costs say 30-50$, then in a bargin bin you could buy 5 terrible games for 25$.
I don't think Atari could've controlled the market so disorganized, but they could've survived if they did better with their own games keeping peoples faith in them, putting more effort into 5200 with a better controllers, more games, and moving beyond the 2600. The crash would've still come, but they would've been much better off by the time Nintendo came.
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