It's crazy that in 2019 some are still naive enough to claim this as one of the worst.
I think it's less naivety as it is wishful thinking.
I mean, it makes a GREAT story, right? "Behold, the videogame so terrible, it made the ENTIRE WORLD swear off videogames! Only the shining glory of Miyamoto & Nintendo could save our artform!"
It's a lot more dramatic than "A series of poor mangement decisions resulted in a glut of poor quality titles that eroded consumer interest and caused retailers to discontinue product. While microcomputers gained some popularity, Nintendo's clever toy-based marketing allowed them to take over the US market."
One of the few times when truth is far more boring than fiction.