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OK, so I didn't remember correctly. I'm glad I put that disclaimer in my first comment! I tried to Google for it, but the late 70s is prehistory for Google.

I'm still having trouble buying the collapse of the walled garden as the reason for the video game crash of 83-84. Pac-man and ET are widely cited as two of the major causes of the crash, and those were in-house Atari productions so the walled garden wouldn't have helped there.



Well, garden collapse was one factor among many. It could be argued that Atari had to rush their shoddy Pac-man to market lest a competitor jump in with a clone first. Another factor was the appearance of pornographic games (Rule 34 applied even then) which hurt the field's reputation.

But there were plenty of other management and business causes of the crash too. Atari reportedly produced more ET cartridges than existed 2600 systems, hubristically deciding that ET would drive a wave of system buying. That sort of financial wizardry won't be saved by any amount of ecosystem walls.

I'd say that the openness of the system caused the failure of Atari itself more so than it caused the industrywide crash. Atari couldn't maintain premium game prices and volume against the flood of competition. (If better games weren't available, ET would have sold more in the vacuum.) A similar story played out in the PC market over the next decade: IBM created an open system, then got marginalized out of their own industry in a race to the bottom. But the whole PC industry always thrived.

I also think the crash itself is overblown in latter-day coverage. I was a kid and didn't notice anything at the time; Toys R Us still had shelves full of Atari games right up until the NES caught on. The bankruptcy of invincible titan Atari itself was a big event, but Coleco didn't fold until 1988 and Mattel and Magnavox trucked right on in other fields of business.

So tying all this back to the topic, remember that Apple's interest is Apple's own survivability and profitability. Apple's responsibility is not to maximize the adoption and utility of the mobile phone app market in general. Apple's goal is to capture the biggest slice of the pie for itself, and it perceives that it has the clout to do that by dictating terms. Whether they will go the way of the NES to market domination or the way of IBM's Micro Channel to obscurity is up to the market.




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