Comment Re: Atari: Game Over (Score 4, Informative) 157
Correct, Atari failed to place any controls on the platform and the market eventually imploded. In particular, since there was no controlling body limiting the number of the games or ensuring any quality standards, the market got flooded with shovelware (making the platform unattractive to customers). To make matters worse for the few good games, copy protection didn't exist so there were rampant cases of games being cloned by competitors (which led to quality original developers exiting the platform).
Nintendo on the other hand took great strides in controlling everything, and likewise was able to dominate for so long. Nintendo did things such as only allowing licensed games which they enforced with a rudimentary copy protection chip that only they could install (so all games came through them and they could ensure quality). They limited the number of games each company could publish per year to five (creates an incentive for those companies to make it their five best games), and they forced third party developers to sign platform exclusivity agreements for a couple years (severely hurting competitors). They took several other steps as well to do things like control distributors who were mostly companies much larger than them - it's actually quite impressive). In fact, they were so successful that case studies on Nintendo are taught as part of the core strategy class for graduate business schools.