See here's why I'm skeptical.
Just including C64:
For a substantial period (1983–1986), the C64 had between 30% and 40% share of the US market and two million units sold per year,[11] outselling the IBM PC compatibles, Apple Inc. computers, and the Atari 8-bit family of computers. Sam Tramiel, a later Atari president and the son of Commodore's founder, said in a 1989 interview, "When I was at Commodore we were building 400,000 C64s a month for a couple of years."[12] In the UK market, the 64 faced competition from the BBC Micro and the ZX Spectrum[13] but the 64 was still one of the two most-popular computers in the UK.[14]
That would be $1200 million alone for hardware in sales for the C64 alone in just the US for 1985.
Notice the language of your sources which both carefully word it
"the video game industry was grossing upward of $3 billion a year in America alone; in 1985, at the end of the third generation, video game sales reached only $100 million worldwide."
The first one says "video game industry" the second says "video game sales". It would seem to me one includes hardware where the 2nd only is looking at software, even if those figures are accurate.
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