Dramatic Failures of Gaming Industries that Still Act as Cautionary Tales

The Gaming Studios Ruling The World Till 2016

T he video game industry is one of the greatest and most profitable industries of the world. There are many video game industries in the world that are making some of the best games of this decade and that is what is allowing the industry to move forward. However, developing a game is not child's play, instead a lot of thought and effort needs to be put in a single game. There are some companies that were unable to keep up with the demands of the customers and that is why they ended up becoming failures. Here you will find some of the companies that are dramatic failures of the video gaming history.


Atari was once the largest video game maker of the world, the company was formed in 1972 and was responsible for creating the first every console to allow gamers to easily enjoy their favorite games at home. Atari had released more than a 100 video games like Missile Command, Tempest and more. The company's ownership shifted many times and later on it become the property of Hasbro. However, during the 1990's Atari was unable to keep up with the world and ended up losing millions of dollars. It released a console known as Jaguar which was also a total flop. Years later in 2013 Atari filed for bankruptcy and became a company that only focused on casino gaming.


THQ is a company that had gained a lot of popularity mainly because of the WWF Smackdown and Wrestlemania series. The company had also made deals with Nickelodean, Pixar and Disney to create games based on their characters. THQ stands for Toy HeadQuarters and it was founded back in 1989 and it became a giant success during the 1990s and 2000s. However, years later THQ started to lose money. Game franchises such as Red Dawn were not received well by the audience and the company defaulted on a $50 million loan. It was then forced into bankruptcy. Later on the THQ trademark was purchased by Nordic Games.


Hudson soft was originally a Japanese game company and it was started back in 1973. By the 1980's Hudson had become a popular game developer as it had released some amazing titles such as Bomberman, Adventure Island and Excitebike. The games that it created were released on multiple systems including the Nintendo Entertainment Sytem, Supar Famicom, Sega and more. During the 1990's the gaming industry changed as the traditional arcade style games were not welcome anymore. Hudson did not keep up with this change and kept on struggling. The company was losing money and as of 2012 it was purchased by Konami.

Westwood Studios

Westwood Studios was founded back in 1985, the company originally created games for the Commodore 64, Amiga and Atari. The company was later purchased by Virgin Interactive and was sold to Electronic Arts in 1998. Westwood studios was very famous for games like Command & Conquer and Red Alert series. After it was purchased by EA, the employees at Westwood felt pressure that they had to change the style and gameplay to fall in line with what EA wanted. EA then shut down Westwood in 2003.


3DO was founded in the year 1991 and was first known as SMSG or San Mateo Software Group. The 3DO was a gaming console that was introduced by SMSG, and it was supposed to be the best console ever. The 3DO was supposed to use CDs instead of cartridges and have multiplayer capability. The 3DO cost $699 and quickly became a flop. It was a bit too expensive and some people believed that it was ahead of its time. The company started to face many loses and ultimately it filed for bankruptcy in 2003.

These were some game companies that became ultimate failures and a lesson for the rest of the industry. The losses that these companies faced were so immense that they were forced to shut down. It is important for all the game companies to keep up with time and try to develop what the consumers want. Having a company shut down is a very difficult thing for the owners and that is why it should be avoided.

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