It was not as severe as 83 but if you think about it, it was similar to what happened. Multiple companies putting out inferior products. Plus I think having everything as a dedicated system hurt too. Want to play pong hook it up want to play racing unhook pong hook up racing. It needed a revamp and Atari was able to provide that with the 2600. In a way it is very similar to what Nintendo did in the 80s.