From Business History: How E.T. The Extra-Terresterial Destroyed Atari

From Business History: How E.T. The Extra-Terresterial Destroyed Atari

From SNAFU with Ed Helms by iHeartPodcasts

April 3, 2026 · 52 min

About this episode

This episode discusses how the game E.T. led to the downfall of Atari.

I’m taking a break to share an episode of another podcast I think you’ll enjoy, Business History. Former Planet Money hosts Jacob Goldstein and Robert Smith examine the surprising stories of businesses big and small, bringing to life the greatest innovations, the boldest entrepreneurs and the craziest mavericks in the archives of commerce. They share why some company stocks soar, while other business ideas crash, and explore the ideas that shaped our economy—and the lessons behind their success and failure. Today’s episode: how E.T. brought down Atari. Fueled by hot tubs, recreational drugs, and a love of games, Nolan Bushnell took computer games out of research labs and into bars, launching an industry. Bushnell and his engineers were pushed aside as Atari expanded and, in a desperate bid to cash in on Hollywood hype, the company concocted a wild plan for a game based on Steven Spielberg's hit, E.T. the Extra-Terrestrial. The game tanked...and brought Atari down with it.  Find Business History, on YouTube, Apple, Spotify, or wherever you get podcasts.  See omnystudio.com/listener for privacy information.

People in this episode

Host: Ed Helms

Topics covered

  • business history
  • video games
  • Atari
  • E.T.
  • entrepreneurship
  • innovation

Keywords

  • E.T.
  • Atari
  • Nolan Bushnell
  • video games
  • business history
  • failure
  • entrepreneurship

Mentioned in this episode

Organizations: Atari, Business History, Planet Money, iHeartPodcasts

Books & works: E.T. The Extra-Terresterial

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