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It had nothing to do with the demise of the Amiga or C64. If anything, it helped it. Commodore made money on selling hardware and nothing else, so they didn't care what you fed their machine.
Nowadays, the hardware is sold at a loss and the money is made on licensing, so it could hurt a console. I'm not sure if this is true or not, but it's a common rumor.
It did probably hurt software companies to the extent you believe someone would have paid for all the software they copied (they wouldn't).
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