10 Huge Brands That Committed Suicide

From drug trafficking scandals to poisonous air purifiers, big companies have stumbled into all sorts of suicidal mishaps that have killed top brands.

Chrysler and Sharper Image are among the companies that failed to save some of their own huge brands.

Here are 10 examples of corporate missteps that could have been avoided.

Atari, Inc.

In 1972, Atari released Pong, thereby pioneering the video game. By the end of the decade, it was the fastest-growing company in the US, its Atari 2600 gaming console shaping up to be the world's best-selling console.

Then the 80s happened.

In 1982, Atari majorly hyped up two video games that flopped on release. One of the games was E.T., which is today considered to be the worst video game ever made. Atari buried millions of unsold E.T. game cartridges in the desert, and in 1984, Warner Communications sold the problem-riddled home gaming division of Atari Inc. to Tramel Technology.

Circuit City

Circuit City flopped for many reasons — failure to manage its inventory and website are two major causes of the electronics retailer's decline.

What makes the Circuit City case unique, however, is the lesson in the value of one's best employees.

In March of 2007, Circuit City set itself on a slippery slope when it fired 3,400 of its highest paid workers. The company said that replacing these employees with those willing to work for less was part of an effort to improve the bottom line.

Analysts were quick to note an almost immediate decline in Circuit City's business. About 60 percent of the employees fired held in-store positions: "...this is clearly why April sales were worse,"said Tim Allen, an analyst with Jefferies & Co. "They were replaced with less knowledgeable associates."

The Washington Post reported that the job cuts were "backfiring."By early 2009, all of Circuit City's stores were closed.

The XFL

The XFL was a highly televised sports league that combined football and professional wrestling. Organized in 1999, it was a joint venture between NBC and the World Wrestling Federation. Setting records for the lowest primetime ratings in television history, the league was discontinued after just one season.

Dubbed the biggest sports bust of all time by ESPN, the XFL brought NBC and the WWF to a combined $70 million loss. Nevertheless, NBC Sports chairman Dick Ebersol reflected on the league as "one of the most fun experiences of my life." Very, very expensive fun.

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