Warner Communications, the parent company of video game manufacturer Atari, issues an earnings statement in which it anticipates losing money in the fourth quarter of 1982. The losses are attributed to product returns and other shortfalls experienced by Atari, despite the acquisition of licenses for home video games based on Pac-Man and E.T. The reaction on Wall Street is immediate, and a massive sell-off of video game related stock leaves the entire industry reeling within a week. The industry is seeing the first hint of the bust that will end the boom years.
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