Here is another point Commodore failed to notice.
Time of C64 rise coincides with fall of all cart based consoles due to video game crash BUT time of A500 coincided with US fascination of P.O.S. NES (puke) or idiots spending MORE than 512kb A1000 cost on pathetic CGA PCs or 128k mono Mac.
If you look at the total sales the US consumers buying that crap is one of the reasons that......
A. Amiga sold only 9 million less than the 22m C64 for compatibles (inc 5m for 128/128D/PET64/SX64)
B. US Games like Simpsons arcade lovingly programmed for C64 (DOS PCs) but not Amiga. Crazy.
US consumers need to take 1/3 the blame. Gould's 7mhz 68000 'is fast enough for consumers' attitude until 1992 another 1/3 and management decisions like not marketing A1000 for a year in mid 80s another.
Said it before but never again would one computer be as revolutionary as Amiga 1000 in its place among inferior rivals of EGA PC/ST/MAC/8-BIT. The war was over before the 1 millionth A500 was sold.
PS They could have sold A1000s in 1986 direct to consumers dropping RRP by 40% ie how Jack sold PET