5. Atari lies about their system.
Who did it: Atari
If you are of a certain age, you probably know nothing about the "bit wars".
A short time in the early 90s when both Sega and Nintendo had two 16-bit systems on the market at the time. The Sega Genesis and the Super Nintendo, respectively.
Well, Atari, which had partially been the reason for the video game crash of 1983, decided to stage a comeback in the console making business. But instead of making a 16-bit system like the competition at the time, they decided to market a system that would be far more advanced than either the Genesis or the SNES combined.
It would be known as the Atari Jaguar, and it had a reported 64-bits under its hood. Their ad campaign at the time was "Do the Math". Well, people did do the math, alright, and the purported 64-bits of the Jaguar didn't look any better than the 16-bits that were already on the market. It was embarrassing to say the very least. The Jaguar was a massive flop and Atari has since stayed out of the console business for good, which, if we do the math correctly, equals zero new consoles from Atari in the year 2013. Hmm.