8 Video Game Companies That Went Bankrupt Due To Poor Choices

5. Atari, Inc.

Image: SideQuesting

You know what they say, the great can fall from grace, Atari, Inc. was founded in 1972 and became a powerhouse during the 1970s. However, despite their success with arcade games such as Pong, and the success of the Atari 2600.

However, the company sealed its fate in 1984 due to their contributions to the North American video game crash of 1983 and some of their poor decisions, which caused the crash, which include the release of the Atari 2600 version of Pac-Man, creating more cartridges than there were consoles, as well as not keeping a tight lid on games that were being published .

4. Red Octane

Image: MobyGames

If you don’t know who Red Octane is, here’s a refresher, remember Guitar Hero? Yeah? Well, Red Octane were the guys who created that series. Jamming out on plastic guitars to songs like Sweet Child O’ Mine and Rock and Roll All Night.

Well, after the success, Activision decided to acquire the company in May of 2006. Despite the Guitar Hero series being extremely successful, Activision made a dumb decision and decided to release a bunch of Guitar Hero games in 2009, effectively killing off the series until 2015 and Activision ultimately closed down the studio in 2010.

3. Zipper Interactive

Image: Just Push Start

Formed in 1995, Zipper Interactive is best known for their PlayStation-exclusive, SOCOM: Navy Seals, however, the company also made games such as MAG as well as the Xbox-exclusive, Crimson Skies.

Known as the “team that knew how to make online games,” unfortunately, due to the oversaturation of first-person shooters,  with games like Call of Duty and Battlefield  being the kings of the genre, as well as not offering anything innovative to their games to make them stand out, unfortunately, the company was shut down in 2012.