The hardware of the Atari 7800 was not inferior to the NES (in some ways it was better), but Atari's decision to first delay its release and then to concentrate on yet another iteration of its various arcade classics instead of emphasizing new games doomed it. Double Dragon is one of a relative few new style games that appeared on the system and it was done by Activision. Read more: https://blurt.blog/retrogaming/@darth-azrael/double-dragon-atari-7800-atari-2600
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