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Denied credit and royalties for cartridges that sold in the millions, four Atari programmers formed a company to publish for the same console without permission. The lawsuit that followed legitimized independent publishing.
The independent publisher was created here, and with it the question of who controls a platform's software. The founders also forced a slow change in how the industry treated the people who made games, moving from anonymous engineering labor toward named creative work with a claim on the value produced.
David Crane built 255 connected jungle screens for the Atari 2600 out of a tiny amount of memory by generating them from a compact rule, and the result became one of the console's biggest sellers.
Two lessons landed at once. Severe technical limits could be answered with cleverness instead of compromise, an approach that runs through demo coding and procedural generation to this day. And an outside publisher could out-design the company that built the machine, which permanently changed the balance of power in console software.
Harmonix and RedOctane released Guitar Hero on November 8, 2005, packaged with a guitar-shaped controller and a set list of licensed rock songs. Living rooms filled with plastic instruments for the next several years.
Music games briefly made playing a video game a group activity that non-players joined without embarrassment, and they gave the recording industry a genuinely new channel at a moment when it badly needed one. The rise and fall together form one of the clearest business lessons of the decade.