What caused Atari to fail?

What caused Atari to fail? In 1986, Nintendo president Hiroshi Yamauchi noted that “Atari collapsed because they gave too much freedom to third-party developers and the market was swamped with rubbish games”.

In 1986, Nintendo president Hiroshi Yamauchi noted that “Atari collapsed because they gave too much freedom to third-party developers and the market was swamped with rubbish games“.