Probably either the positive or negative supply rail to the output XY amplifiers on the game board has failed.
So there is signal, but it's all in one quadrant. Hence the scope XY display up in one corner.
Also resulting in the display unit screen protection circuit cutting in, to protect the phosphor from burns.
Btw, it isn't just phosphor burns that result from a fully on electron beam sitting in one spot. It will actually drill a hole into the glass. I've seen this happen. Used to service console video games long, long ago.
It's a bad idea to even try to see the beam (turning it up, etc) if the drive signals are suspect.
I think I *might* have Atari Asteroids schematics, for both the game board and XY monitor. Will have a look sometime today. Aren't they on the net already? The game board schematic is one huge map-sized folded-up sheet, so would be a pain to scan and stitch.
Edit: Hmm... can't find the Asteroids schematic, though I think it's just mis-filed, since I'm certain I do have the XY-monitor manual, and maybe the Asteroids schematics are with that.
But I did find an Atari Battlezone schematic (similar XY-system.) It's two big map-size sheets, both sides. Probably the Asteroids schematic is 2 sheets too.
Also found some crappy photocopies of "ASTEROIDS SELF-TEST and Diagnostics." 5 pages.
Will keep looking for the correct schematic a bit more.