The Games Begin 1971-1977
1971
 |  Computer Space. |
Nutting manufactures 1,500 Computer Space machines. The components are packaged with a 13-inch black-and-white TV set in a futuristic-looking cabinet. The first arcade video game is released, but the public finds it too difficult to play.
1972
Magnavox Begins Manufacturing the Odyssey
Magnavox begins manufacturing Baer's TV game system, which it calls the Odyssey. Sanders and Magnavox begin showing it to distributors around the country.
Magnavox Unveils First Home Video Game
Magnavox displays the Odyssey at a convention in Burlingame, California, on May 24. Nutting, believing it's the only company dealing with video games, sends Bushnell to see the machine. Bushnell spends a few hours playing video tennis and other games and later reports back to Nutting that he found the Odyssey uninteresting and in no way any competition for Computer Space.
Bushnell Leaves Nutting
Computer Space does not sell well, and Bushnell comes to the conclusion that it is too difficult to play. He realizes that if he can design a simple game, it might be a major draw. He informs Nutting, who tells him to go ahead and design a new machine. Bushnell decides that since he is the brains behind video games he should get a larger share of the profits. When he demands a third of Nutting Associates and doesn't get it, he leaves the company.
Bushnell Starts Atari
Bushnell and Dabney decide to start their own company to design video games for other companies to distribute. They originally call their company Syzygy (the straight-line configuration of three celestial bodies), but that name is already being used by a roofing company. They then settle on the name Atari, a term from the Japanese game Go, whose meaning is equivalent to "check" in chess.
|  Pong. |
Bushnell hires Al Alcorn to program games. Since Alcorn is inexperienced, Bushnell has him program a simple video tennis game as an exercise. They call the game Pong, for two reasons: first, "pong" is the sound the game makes when the ball hits a paddle or the side of the screen, and second, the name Ping-Pong is already copyrighted.
Pong Breaks Down
Bushnell tries selling Pong to established arcade manufacturers. After finding Bally disinterested, Bushnell decides to market the game himself. Pong is test-marketed in Andy Capps, a local bar. Within two weeks the test unit breaks down because the coin drop is flooded with quarters. Pong is a success.
|  The Magnavox Odyssey. |
Magnavox sells the Odyssey exclusively through its own stores. People are led to believe the console will only work with Magnavox televisions. Still, Magnavox manages to sell 100,000 units. Many people buy it because it is the closest thing they can get to a home version of Pong.
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