This article ignores the fact that aside from being barred with manufacturing unlicensed NES games, Atari also failed to compete with any of its subsequent consoles after the VCS (although it did have some success with its PCs). The consoles were all flawed in some way. They were underpowered, didn't offer much over the previous iteration, or simply didn't have a strong enough library of games to compete. Atari was famously slow to realize that maybe people want more out of a game console than home ports of decade-old arcade games. On top of that, their original games that weren't home ports were mostly lackluster or were just outside of what gamers of the time were demanding.

Hard to say that Nintendo putting the kibosh on one arm of Atari's business "bled them to death" when all their other arms were bleeding from self-inflicted wounds.

EDIT: As pointed out below, I have mixed up Atari Corporation and Atari Games, so not all my criticism stands. Atari Games, publishing as Tengen, still largely put out ports of arcade games, but they were at least contemporary arcade games.

The coda to this fascinating saga is that today - in a post publisher, open distribution marketplace - STEAM, the predominate game distribution gateway, allows anyone to publish just about anything for a $100 deposit and a 30% commission per sale. The predictable end result is that 19,000 new games were uploaded to STEAM last year alone, and over 100,000 titles are available for purchase on the platform.

The predictable result is that unless a studio has a lottery-win statistically equivalent outlier or a $50m marketing budget, a new game is swallowed up by the shear volume of titles. 1 in 5 games on STEAM never even earn back the $100 deposit.

There’s an interesting shift in perspective that’s been happening around Nintendo over the last decade.

While the organization still presents as an odd-ball Japanese company with quirky qualities, it’s becoming more and more apparent they are commanded by MBA-types that are seeking to protect as much IP as possible, and squeeze out the last penny from fun.

Things I’ve purchased from them in the last little while are probably at my high-end of tolerance of what things should cost.

For anyone reading the description of the NES's copy protection scheme in this article and thinking, "that doesn't sound right," you would be correct.

The somewhat oversimplified version of how it works is that the console and the cartridge having matching microcrontrollers that output the same bitstream given the same seed. The system compares these and if at any point they differ, the system resets once per second.

As you might guess, this is not a huge technical hurdle to overcome (although it was somewhat more difficult to reverse engineer in the 80's than today), but it was a pretty strong legal hurdle: Nintendo both patented the mechanism _and_ copyrighted the source code for this scheme, giving them (at least) two legal avenues to go after third-party game distributors who tried to work around it.

Further to Accolade - briefly mentioned in the article - Allan Miller one of the “Gang of Four,” photo about the start of Activision went on to start Accolade but it was also destroyed by SEGA's legal actions despite winning it's court case. However while that was being decided, SEGA had already been previously granted a months long injuction against the sale of Accolade's legally reverse engineered game cartridges for the Genesis / Mega Drive which cut off the life blood of the scrappy publisher and lead to it's eventual demise even if they were to later win in court.