> High cost and long manufacturing lead times. This manifested itself in various ways. > Publishers would be reluctant to pay the setup costs for a production run of a game > that they thought might not sell well. Poor demand forecast could lead to a game not > being available in necessary quantities, or a big loss on oversupply if you > overestimated demand.
This, not Warshaw and Frye, was the ultimate cause of the 1983 crash. The market was still growing when everyone abruptly went out of business (which is why ex-Mattel guys who'd seen the numbers bought the Intellivision rights and continued making and selling games until 1991), but nobody was profitable because their forecasts were so far out of whack.
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