If you scroll up a section in the linked topic, you will see that Atari didn't 'give' anything to third party developers, but actually sued to try and stop them. Unfortunately for them, they didn't have any copy protection built into the console, so it was pretty much open season when their legal efforts failed.
I wish the Switch eShop had a similar feature for filtering out all the low-effort shovelware.
Then the shovelware on the Wii happened, and they ate their own words.
Wow if only apple and Android would do the same with apps. Jesus.
Mmm, "History written by the victors", as I'd say.
Let's not forget that not only did Atari fail to sue the pants off of third-party developers, they also completely lost any sense of internal quality control of their own software. The '83 game crash was basically more akin to an investment bubble bursting than just simply a glut of terrible software. (Hell, Steam completely dropped all of their QC standards and we're *still buying games from them*.) Nintendo was also perfectly fine with letting utter trash on the NES as long as it didn't have any crosses or swears in it, of course.
The real reason why Nintendo instituted the Seal program - or, more specifically, the lockout chip that mandated it - was to get their 30% off the top of the entire games ecosystem. The Famicom did not have a lockout chip and anyone who knew how to program for it could make and sell games for it, which meant Nintendo lost out on revenue. Thus, the lockout chip and stricter standards for developer documentation confidentiality were imposed to ensure Nintendo would keep their cut.
Nintendo essentially invented the App Store business model 25 years before Apple did.
Funny enough, Nintendo changed the "Official Nintendo Seal of Quality" to "Official Nintendo Seal" around the time the Wii came out, the Wii and DS got flooded with low quality 3rd party games. Thankfully they avoided a crash, but I feel like the Wii U would have done better if the Wii didn't become a magnet for low quality games.