Exactly that. I heard 1000 times, Jack hated games, which for buying Atari was certainly not the best opinion. 😅I admire the hell out of him though for surviving Auschwitz, starting from Typewriters, and building a computing empire, even if that empire eventually crumbled. I really admire the drive to give the common man a powerful computer with the beautiful ST line at a fraction of the price of everyone else. From all accounts though he was a nice guy, but also disagreeable and bull headed if you didn't play ball his way.
Like you said one bad game can spoil the batch, or the reputation of the company. That goes with another problem. Atari would have guys like Shiraz who make amazing machines, but then....not follow up and support that hardware. Software sells machines, which I don't think they understood. The one caveat to that was the 520ST pack that came with a ton of software, but I think that was mostly just getting old budget stock out the door honestly. 😅
When they had the software, in the case of the Jaguar, they didn't push it the right way. At this point it's hindsight blah blah, but still I am thankful we have these beautiful machines. They are the one gift that Atari (from all 3 eras) has given us.