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The Stupidest Decisions Ever Made in Video Game History

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While there are a lot of things up for debate in the world of gaming, there are some things that every gamer can agree on. That’s saying a lot considering the industry we love has become one of the most polarizing entertainment mediums that humanity has ever known. Shakespeare, Twain and Orwell would be amazed at the controversy – both positive and negative – that has come from the games that release on our consoles and personal computers. However we’re not looking at the media uproar that surrounds the release of each new Grand Theft Auto or even the bickering that goes on between fans of rival consoles. Instead, we’re looking at some of the most absurdly stupid mistakes made in the history of this fascinating industry and how those decisions have shaped the world of gaming. You may be familiar with some of these decisions, while others might have eluded you up until now. Either way, there’s no denying that these choices listed below were the wrong ones.

The Atari NES

Atari Opting Not to Partner with and Distribute the NES
Imagine what the landscape of the video game industry would look like today if Atari had taken Nintendo up on their offer and distributed the Nintendo Entertainment System in the west as their own instead of trying to go it alone with the 5200 and 7800 consoles. Depending on who you talk to, the whole deal for Atari to distribute the NES fell through because Atari was angry with Nintendo over a deal Nintendo has signed that gave Colecovision sole console rights to Donkey Kong. Nintendo was completely ready to have the biggest name in gaming (at the time) handle the NES, but Atari was too consumed with suing Colecovision. Nintendo eventually got fed up and went it alone with the NES. It turned out to be a great choice for Nintendo, but easily one of the stupidest decisions by Atari. The rest, as they say, is history.

Xbox Passing on Dreamcast Compatibility

MS Declining Sega’s Offer of Dreamcast Compatibility in the Xbox
Before we even get into what led up to this poor decision by Microsoft, let’s just think about what it could have done for the Xbox brand in Japan. It’s no secret that Microsoft has struggled in the east. Both the Xbox and Xbox 360 have had the distinction as sales stinkers in Japan. This is despite both MS and their supportive publishers attempts to garner a following with special editions and limited run console bundles that Westerners would jump at in a heartbeat. So what’s this Sega deal we’re talking about? Sega wanted to allow MS to include full backwards compatibility of all Dreamcast games in the original Xbox. Sega felt it would bolster sales of the MS console while simultaneously keeping the DC name alive. It would have also helped Xbox LIVE with games ready to play online. MS, however only wanted Xbox games to be playable online. We can only speculate on the damage this decision has caused MS in Japan, but it’s pretty safe to say that this stupid stubborn choice cost MS a lot of sales.

The PS3 Costing Too Much at Launch

Sony Launching the PS3 at Such a High Price Point
Thank goodness this is one of those decisions that were able to be rectified unlike some of the other monumental screw-ups on this list. While the choice to launch the Playstation 3 at such a high price point hurt the console by driving consumers to cheaper alternatives offered by Microsoft and Nintendo, we can really fault Sony that much. Yes the price put the console out of reach for a lot of gamers, but the components inside the original lineup of SKUs were very expensive. The most expensive part of the console turned out to be one of the driving forces behind sales – the Blu ray drive. However, if Sony had made the decision to take a little bit more of a pinch on each console sold by launching at a lower price point, they could have easily recouped the losses in software royalties. They would have also won the next-gen movie media format war a lot faster. This would have resulted in studios jumping onboard the Blu ray train sooner, which would have meant more money in Sony’s corporate pockets too. Even though the situation has been fixed, we still wonder how much better off Sony would have been if they launched the console at a lower price point.

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Comments  

 
+1 #1 hahahaxino 2011-05-09 11:03
"Practically Every Decision Sega Made Between Genesis and Dreamcast"

lol.

don't forget Sony removing the OtherOS that caused lawsuit, Anon and PSN shutdown.
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-5 #2 Mass Effect 2Liam 2011-05-09 12:13
The stupidiest decision ever is to make Mass Effect sequel a bland and monotone corridor TPS!!!!!
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-1 #3 RE: The Stupidest Decisions Ever Made in Video Game HistoryMark 2011-05-09 15:23
The Atari-Nintendo thing was not as simple as you make it out to be. At the time the negotiations were happening, Atari was losing $2 million a day and laying off left, right and center. Every time Nintendo had negotiations, they had to start off with new personel. The negotiations fell apart because of the chaos in Atari.

Even if the deal went through, what would have happened? Retail considered "atari" and "video games" poison. Nintendo themselves have to make the NES look like a VCR and ship with a plastic robot to even get it in the stores.

Then there's the possibility that Atari would have legally tied the NES up so no one could have it.
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-4 #4 RRoDBrian 2011-05-09 15:34
Bigger than Microsoft's RRoD mistake was consumers continuing to throw their hard earned $ at a faulty product. I don't blame anyone who bought a XBOX slim because that seems like a stable product, but anyone who bought a "fat" XBOX was suckered out of their money. If we were talking about a car or an appliance, etc. then that product would have been shunned by consumers. However, consumers continue to reward MS and their shoddy/faulty products just like people did with some of the versions of Windows.
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+2 #5 RE: The Stupidest Decisions Ever Made in Video Game Historypead 2011-05-09 15:43
How about Sony being unable to keep their network secure? I think PSN has become one of the biggest mistakes in history.
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-1 #6 RE: The Stupidest Decisions Ever Made in Video Game Historyyakuza 2011-05-10 02:42
Hello, PS3 was 600 euros at launch yes. But PS2 had also a high launch price, it launched for 500 euros back in 2001 here.

For 10 year old console back in the day, that was massive.
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0 #7 RE: The Stupidest Decisions Ever Made in Video Game HistoryDarthDiggler 2011-05-10 07:58
For MS to add DC compatibility that would have likely required another chip more cost and delayed launch.
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