Came across this today, doing some googling around after getting a copy of PacMan 4K.
From an article about "10 Technologies that Failed to Retain Their Dominance":
The Atari 2600 is a video game console released in September 1977. It is credited with popularizing the use of microprocessor-based hardware and ROM cartridges containing game code, instead of having non-microprocessor dedicated hardware with all games built in. It was wildly successful, and during much of the 1980s, "Atari" was a synonym for this model in mainstream media and, by extension, for video games in general.
The popularity did not last for long. Atari's best programmers left due to low pay; other consoles were able to reverse-engineer the system and offer compatibility; and Pac-Man and E.T. proved to be huge flops. Atari could've licensed the Nintendo Entertainment System for the U.S. market, but they passed, giving up their last chance for industry relevance.
OK - we all know PacMan wasn't a great conversion of the arcade game. But considering it did sell, and sold a ton, can it really be called a "flop"?
Our opinions are colored by time. Maybe there were those who on first glance thought it was junk. But I'm sure there were others like me who played it and were happy to do so, just to have PacMan at home to play.
I think calling it a "flop" is one of those things everyone thinks they know, and it's not really accurate.