Is Android too open? Colecovision was.

I suppose I hazily remember this event:  The Great American Video Game Crash of 1983
It was the year that all the home console video game players went bust. From the ashes emerged Nintendo and then the more recent history you know well.
But just before that was a brief period when everyone I knew had an Intellivision, Colecovision, Atari, etc etc
What happened?
Cheap and easy to copy, the early Atari platform brought many geniuinely-similar clones, flooded the market with sameness and low quality, and after the market initially swallowed a bunch of stuff, it froze. No more expansion and no replacement by existing owners.
Could happen to Android phones I think in the near future.