It may surprise a few people, but my opinion on WATA as a service is generally favourable. I'm not a sealed collector kinda guy, of course, and I'm pretty sure I will never own a graded game. But I think it is good that this service exists and is available for those who do care about that kind of thing, and despite a number of mistakes we have seen come out of the WATA grading process I would still probably trust the expertise there more than VGA. So, strictly as a company offering a grading service, I am willing to just live and let live.
However, as for the effects on the wider hobby, well I'm not too sure. It didn't seem so to begin with, but over time it became apparent that the people behind WATA were actively engaging in a scheme to turbocharge the videogame market in the image of comics etc. presumably so that they and a small group of fellow interested parties could make a lot of money. Their self-interested motivations have exaggerated and reinforced a wide divide between collectors interested in videogames primarily as investment and the rest of us. There was always this dichotomy in collecting and gaming before, but never this stark of a contrast.
The question, tho, is this bad for the hobby? My question is WHICH hobby... We have to face the fact that videogame collecting is no longer just one hobby. You've got the majority of us practicing one hobby, we who game and collect much as we always have, some more interested in carts, some more interested in CIB, some more interested in gaming, some more the collecting. And now we have this other hobby, the speculation fueled investment collecting.
I actually say that WATA has been good for BOTH these hobbies, by helping to definitively break the community into two. They get their money and their farts to smell as much as they like. We get rid of them, and can get back to a sense of genuine community built on our common passion. Videogames is big enough for all of us now, we don't need to even worry about that sealed/graded speculative side of the hobby anymore, now that we are no longer hosted by a company directly out to profit from that.
WATA, HE, GoCollect, Jeff, they had to BREAK the videogame hobby in order to motivate us to SAVE it. In my opinion, we should be grateful for that.