I think the problem was a lack of foresight about the potential of the technology because of limited awareness of what was going on at the time. If you had looked over at games for computers that weren't affected in the crash like the Apple II, you'd see that they were gaining increasing complexity. But, of course, a lot more kids had, at the very least, a pong console in their home by 1982, so this person probably was only familiar with those cheap 2600 games.
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