To date, market-shaping strategies have been mainly investigated from the lens of a focal market actor. Consequently, most insights have been about the activities and outcomes of the examined market-shaping strategy. However, research has indicated that situations in which multiple market actors have attempted to shape a market can result in the overshaping of a market. When a market is overshaped, it can be detrimental to the firm performance of all market participants. However, research into the notion of overshaping is limited. By employing a historical case study of the video game market in the 1980s, we investigate a market in which many firms attempted to shape the market to their benefit. We examine the effect of overshaping on a market and identify dynamics that resulted in the extreme case of overshaping. We contribute to the market-shaping literature by further cementing the concept of overshaping and prompt firms and policymakers to engage in market-shaping collaboratively.