Editing Pong (section)

==Development and history==
{{see also|Atari, Inc#Origin|l1=Origin of Atari Inc.}}
[[File:AlAlcorn-Cropped.jpg|thumb|upright|alt=A close up photo of a bearded man.|Atari engineer [[Allan Alcorn]] designed and built ''Pong'' as a training exercise.]]

''Pong'' was the first game developed by [[Atari, Inc|Atari]].<ref name="PriceGuide-1">{{cite book| title = Official Price Guide to Classic Video Games| first = David| last = Ellis| pages = [https://archive.org/details/officialpricegui00davi/page/3 3–4]| chapter = A Brief History of Video Games| publisher = [[Random House]]| isbn = 0-375-72038-3| year = 2004| chapter-url = https://archive.org/details/officialpricegui00davi/page/3}}</ref><ref name="Ultimate-3">{{cite book| title = Ultimate History of Video Games| first = Steven| last = Kent| pages = 38–39| chapter = And Then There Was Pong| publisher = Three Rivers Press| isbn = 0-7615-3643-4| year = 2001}}</ref> In 1971, Bushnell and Dabney founded Syzygy Engineering to develop the concept of a standalone computer system with a monitor and attaching a coin slot to it to play games on. Drawing inspiration from ''[[Spacewar!]]'', the duo created ''[[Computer Space]]''.<ref>{{cite video|url=https://www.youtube.com/watch?v=763CFRuxovo|date=November 24, 2022|title=The Evolution of Video Games: Pong's 50-Year Legacy|author=The Sydney Morning Herald and The Age|work=[[YouTube]]|access-date=November 5, 2024}}</ref> As the game did not fare well commercially, Bushnell decided to form a company to produce more games by licensing ideas to other companies. The first contract was with [[Bally Manufacturing Corporation]] for a [[driving game]].<ref name="Ultimate-2"/><ref name="Ultimate-1">{{cite book| title = Ultimate History of Video Games| first = Steven| last = Kent| pages = 34–35| chapter = Father of the Industry| publisher = Three Rivers Press| isbn = 0-7615-3643-4| year = 2001}}</ref> Soon after the founding, Bushnell hired [[Allan Alcorn]] because of his experience with electrical engineering and computer science; Bushnell and Dabney also had previously worked with him at [[Ampex]]. Prior to working at Atari, Alcorn had no experience with video games.<ref name="AlcornInterview">{{cite web| url = http://www.ign.com/articles/2008/03/11/al-alcorn-interview| title = Al Alcorn Interview| first = Cam| last = Shea| website = [[IGN]]| date = 10 March 2008| access-date = 13 October 2008| archive-url = https://web.archive.org/web/20170727190507/http://www.ign.com/articles/2008/03/11/al-alcorn-interview| archive-date = 27 July 2017| url-status = live| df = dmy-all}}</ref> Bushnell had originally planned to develop a [[driving video game]], influenced by [[Chicago Coin]]'s ''Speedway'' (1969) which at the time was the biggest-selling [[electro-mechanical game]] at his [[amusement arcade]].<ref>{{cite news |last1=Bushnell |first1=Nolan |author1-link=Nolan Bushnell |last2=Weaver |first2=Christopher |title=Nolan Bushnell: Transcript of an interview conducted by Christopher Weaver |url=https://www.si.edu/media/NMAH/NMAH-AC1498_Transcript_NolanBushnell.pdf#page=37 |access-date=20 May 2021 |work=[[Lemelson Center for the Study of Invention and Innovation]] |publisher=[[Smithsonian Institution]] |date=17 November 2017 |page=33 |archive-url=https://web.archive.org/web/20210423175316/https://www.si.edu/media/NMAH/NMAH-AC1498_Transcript_NolanBushnell.pdf |archive-date=23 April 2021 |url-status=live }}</ref> However, Bushnell had concerns that it might be too complicated for Alcorn's first game.<ref name="computerspace">{{cite news|url=http://www.salon.com/people/feature/1999/06/12/nolan/index.html|title=The adventures of King Pong|last=Pescovitz|first=David|date=June 12, 1999|work=Salon|archive-url=https://web.archive.org/web/20080307161700/http://www.salon.com/people/feature/1999/06/12/nolan/index.html|archive-date=March 7, 2008|url-status=dead|author-link=David Pescovitz|df=mdy}}</ref>

To acclimate Alcorn to creating games, Bushnell gave him a project secretly meant to be a warm-up exercise.<ref name="AlcornInterview"/><ref name="AmerHert">{{cite magazine|url=http://www.americanheritage.com/people/articles/web/20061129-pong-video-games-nolan-bushnell-atari-al-alcorn-nintendo.shtml |title=The Mother of All Video Games |magazine=[[American Heritage (magazine)|American Heritage]] |first=David |last=Rapp |date=29 November 2006 |access-date=25 October 2008 |url-status=dead |archive-url=https://web.archive.org/web/20080517011435/http://www.americanheritage.com/people/articles/web/20061129-pong-video-games-nolan-bushnell-atari-al-alcorn-nintendo.shtml |archive-date=17 May 2008 }}</ref> Bushnell told Alcorn that he had a contract with [[General Electric]] for a product, and asked Alcorn to create a simple game with one moving spot, two paddles, and digits for score keeping.<ref name="AlcornInterview"/> In 2011, Bushnell stated that the game was inspired by previous versions of electronic tennis he had played before; Bushnell played a version on a [[PDP-1]] computer in 1964 while attending college.<ref name="GI-215">{{cite magazine| magazine = Game Informer| title = The Father of the Game Industry Returns to Atari| first = Matt| last = Helgeson| issue = 215| page = 39|date=March 2011}}</ref> However, Alcorn has claimed it was in direct response to Bushnell's viewing of the [[Magnavox Odyssey]]'s Tennis game.<ref name="AlcornInterview"/> In May 1972, Bushnell had visited the [[Magnavox]] Profit Caravan in [[Burlingame, California]] where he played the Magnavox Odyssey demonstration, specifically the table tennis game.<ref name="RB-History">{{cite web| url = https://www.ralphbaer.com/video_game_history.htm| title = Video game history| publisher = R. H. Baer Consultants| year = 1998| access-date = 22 October 2008| archive-url = https://web.archive.org/web/20111223011401/https://www.ralphbaer.com/video_game_history.htm| archive-date = 23 December 2011| url-status = live| df = dmy-all}}</ref><ref name="visit">{{cite book | last = Baer| first = Ralph| author-link = Ralph H. Baer| title =Video Games: In The Beginning | publisher = Rolenta Press|date=April 2005| location = New Jersey, USA| page = 81| isbn= 0-9643848-1-7 }}</ref> Though he thought the game lacked quality, seeing it prompted Bushnell to assign the project to Alcorn.<ref name="GI-215"/>

Alcorn first examined Bushnell's schematics for ''Computer Space'', but found them to be illegible. He went on to create his own designs based on his knowledge of [[transistor–transistor logic]] (TTL) and Bushnell's game. Feeling the basic game was too boring, Alcorn added features to give the game more appeal. He divided the paddle into eight segments to change the ball's angle of return. For example, the center segments return the ball at a 90° angle in relation to the paddle, while the outer segments return the ball at smaller angles. He also made the ball accelerate the longer it remained in play; missing the ball reset the speed.<ref name="Ultimate-2"/> Another feature was that the in-game paddles were unable to reach the top of the screen. This was caused by a simple circuit that had an inherent defect. Instead of dedicating time to fixing the defect, Alcorn decided it gave the game more difficulty and helped limit the time the game could be played; he imagined two skilled players being able to play forever otherwise.<ref name="AlcornInterview"/>

Three months into development, Bushnell told Alcorn he wanted the game to feature realistic sound effects and a roaring crowd.<ref name="AlcornInterview"/><ref name="ArtOfGameWorlds">{{cite book| title = The Art of Game Worlds| first = Dave| last = Morris| page = 166| chapter = Funky Town| publisher = [[HarperCollins]]| isbn = 0-06-072430-7| year = 2004}}</ref> Dabney wanted the game to "boo" and "hiss" when a player lost a round. Alcorn had limited space available for the necessary electronics and was unaware of how to create such sounds with [[Digital electronics|digital circuits]]. After inspecting the [[Video signal generator#Sync pulse generators (SPG)|sync generator]], he discovered that it could generate different tones and used those for the game's sound effects.<ref name="Ultimate-2"/><ref name="AlcornInterview"/> To construct the prototype, Alcorn purchased a $75 [[Hitachi]] [[black-and-white]] television set from a local store, placed it into a {{convert|4|ft|m|adj=on}} wooden [[Arcade cabinet|cabinet]], and soldered the wires into boards to create the necessary circuitry. The prototype impressed Bushnell and Dabney so much that they felt it could be a profitable product and decided to test its marketability.<ref name="Ultimate-2"/>

[[File:Pong prototype.jpg|thumb|left|alt=A horizontal photograph showing the top half of an orange arcade cabinet.|The ''Pong'' prototype that was used in the tavern]]

In August 1972, Bushnell and Alcorn installed the ''Pong'' prototype at a local bar, Andy Capp's Tavern.<ref>{{cite web|url=https://www.metroactive.com/features/columns/pong-40th-anniversary-rooster-t-feathers.html|title=Pong 40th anniversary – Rooster T. Feathers – Features & Columns|website=www.metroactive.com|access-date=9 May 2017|archive-url=https://web.archive.org/web/20170709091930/http://www.metroactive.com/features/columns/pong-40th-anniversary-rooster-t-feathers.html|archive-date=9 July 2017|url-status=live|df=dmy-all}}</ref><ref>{{cite magazine|url=https://www.wired.com/2010/11/1129pong/|title=Nov. 29, 1972: Pong, a Game Any Drunk Can Play|magazine=WIRED|access-date=9 May 2017|archive-url=https://web.archive.org/web/20170901154356/https://www.wired.com/2010/11/1129pong|archive-date=1 September 2017|url-status=live|df=dmy-all|last1=Long|first1=Tony}}</ref><ref>{{cite web|url=http://www.computerhistory.org/revolution/story/183|title=Pong – CHM Revolution|website=www.computerhistory.org|access-date=9 May 2017|archive-url=https://web.archive.org/web/20170709182848/http://www.computerhistory.org/revolution/story/183|archive-date=9 July 2017|url-status=live|df=dmy-all}}</ref><ref>{{cite magazine|url=http://www.vanityfair.com/culture/features/2011/03/pong-excerpt-201103|title=The Origins of the First Arcade Video Game: Atari's Pong|first=Harold|last=Goldberg|magazine=Vanity Fair|date=28 March 2011|issue=March|access-date=9 May 2017|archive-url=https://web.archive.org/web/20150111232305/http://www.vanityfair.com/culture/features/2011/03/pong-excerpt-201103|archive-date=11 January 2015|url-status=live|df=dmy-all}}</ref> They selected the bar because of their good working relation with the bar's owner and manager, Bill Gaddis;<ref name="Ultimate-4">{{cite book| title = Ultimate History of Video Games| first = Steven| last = Kent| pages = 43–45| chapter = And Then There Was Pong| publisher = Three Rivers Press| isbn = 0-7615-3643-4| year = 2001}}</ref> Atari supplied pinball machines to Gaddis.<ref name="Ultimate-3"/> Bushnell and Alcorn placed the prototype on one of the tables near the other entertainment machines: a jukebox, pinball machines, and ''Computer Space''. The game was well received the first night and its popularity continued to grow over the next one and a half weeks. Bushnell then went on a business trip to Chicago to demonstrate ''Pong'' to executives at [[Bally Manufacturing|Bally]] and [[Midway Games|Midway Manufacturing]];<ref name="Ultimate-4"/> he intended to use ''Pong'' to fulfill his contract with Bally, rather than the driving game.<ref name="Ultimate-2"/><ref name="PriceGuide-1"/> A few days later, the prototype began exhibiting technical issues and Gaddis contacted Alcorn to fix it. Upon inspecting the machine, Alcorn discovered that the problem was due to the coin mechanism overflowing with quarters.<ref name="Ultimate-4"/>

[[File:157 W. El Camino Real.jpg|thumb|right|The former site of Andy Capp's Tavern in 2023, which was replaced by the Rooster T. Feathers comedy club in 1984<ref name="BayAreaStandUp_Page_87">{{cite book |last1=G |first1=Nina |last2=Patterson |first2=OJ |title=Bay Area Stand-Up Comedy: A Humorous History |date=2022 |publisher=The History Press |location=Charleston, South Carolina |isbn=9781467149884 |page=87 |url=https://books.google.com/books?id=sShaEAAAQBAJ&pg=PA87 |access-date=June 24, 2023}}</ref>]]

After hearing about the game's success, Bushnell decided there would be more profit for Atari to manufacture the game rather than license it, but the interest of Bally and Midway had already been piqued.<ref name="PriceGuide-1"/><ref name="Ultimate-4"/> Bushnell decided to inform each of the two groups that the other was uninterested—Bushnell told the Bally executives that the Midway executives did not want it and vice versa—to preserve the relationships for future dealings. Upon hearing Bushnell's comment, the two groups declined his offer.<ref name="Ultimate-4"/> Bushnell had difficulty finding financial backing for ''Pong''; banks viewed it as a variant of pinball, which at the time the general public associated with the Mafia. Atari eventually obtained a [[line of credit]] from [[Wells Fargo]] that it used to expand its facilities to house an assembly line.<ref name="Ultimate-5">{{cite book| title = Ultimate History of Video Games| first = Steven| last = Kent| pages = 50–53| chapter = The King and Court| publisher = Three Rivers Press| isbn = 0-7615-3643-4| year = 2001}}</ref> The company announced ''Pong'' on 29 November 1972.<ref name="atari_production99">{{cite web|title=Production Numbers|url=https://www.atarigames.com/atarinumbers90s.pdf|publisher=[[Atari]]|access-date=19 March 2012|year=1999|archive-url=https://web.archive.org/web/20130120084729/https://www.atarigames.com/atarinumbers90s.pdf|archive-date=20 January 2013|url-status=live|df=dmy-all}}</ref><ref>{{cite web|url=http://www.computerhistory.org/tdih/November/29/|title=This Day in History: November 29|publisher=[[Computer History Museum]]|access-date=28 November 2011|archive-url=https://web.archive.org/web/20180103230403/http://www.computerhistory.org/tdih/november/29/|archive-date=3 January 2018|url-status=live|df=dmy-all}}</ref> Management sought assembly workers at the local unemployment office, but was unable to keep up with demand. The first arcade cabinets produced were assembled very slowly, about ten machines a day, many of which failed quality testing. Atari eventually streamlined the process and began producing the game in greater quantities.<ref name="Ultimate-5"/> By 1973, they began shipping ''Pong'' to other countries with the aid of foreign partners.<ref name="Ultimate-6">{{cite book| title = Ultimate History of Video Games| first = Steven| last = Kent| page = 74| chapter = The Jackals| publisher = Three Rivers Press| isbn = 0-7615-3643-4| year = 2001}}</ref>

{{Anchor|Pong Tron|Pong-Tron|Elepong}}In Japan, ''Pong'' was officially released in November 1973 by Atari Japan, which would later be sold to [[Namco]].<ref name="Akagi">{{cite book |last1=Akagi |first1=Masumi |title=アーケードTVゲームリスト国内•海外編(1971-2005) |trans-title=Arcade TV Game List: Domestic • Overseas Edition (1971-2005) |date=13 October 2006 |publisher=Amusement News Agency |language=ja |location=Japan |isbn=978-4990251215 |page=51 |url=https://archive.org/details/ArcadeGameList1971-2005/page/n52}}</ref> However, ''Pong'' had been beaten to the market by two Japanese ''Pong'' clones released in July 1973: [[Sega]]'s ''Pong Tron'' and [[Taito]]'s ''Elepong''.<ref name="Smith">{{cite book |last1=Smith |first1=Alexander |title=They Create Worlds: The Story of the People and Companies That Shaped the Video Game Industry, Vol. I: 1971-1982 |date=19 November 2019 |publisher=[[CRC Press]] |isbn=978-0-429-75261-2 |pages=191–95 |url=https://books.google.com/books?id=Cxy_DwAAQBAJ&pg=PT191}}</ref>

===Home version {{anchor|console|consoles}}===
[[File:TeleGames-Atari-Pong.jpg|thumb|left|alt=Photo of a dedicated video game console with two knobs.|Atari's ''Home Pong'' console, released through [[Sears]] in 1975]]
After the success of ''Pong'', Bushnell pushed his employees to create new products.<ref name="PriceGuide-1"/><ref name="Ultimate-Home1">{{cite book| title = Ultimate History of Video Games| first = Steven| last = Kent| pages = 80–83| chapter = Could You Repeat That Two More Times?| publisher = Three Rivers Press| isbn = 0-7615-3643-4| year = 2001}}</ref> A new [[electronic technology]], the [[large-scale integration]] (LSI) chip, had recently become available, which Bushnell believed would "allow pioneering in new" game concepts. Atari began working on the reduction of ''Pong'' from a large arcade [[printed circuit board]] (PCB) down to a small LSI chip for use in a home system. The initial development cost for a game on a single LSI chip was expensive, costing around {{US$|50,000|1971|long=no|round=-3}}, but once the chip was developed, it became significantly cheaper to [[mass-produce]] the game as well as more difficult to [[reverse-engineer]].<ref>{{cite magazine |last=Albarardo |first=Sonny |title=Silicon Gulch cowboys aim to be top guns of games |magazine=[[Play Meter]] |date=October 1975 |volume=1 |issue=10 |pages=31–7 |url=https://archive.org/details/play-meter-volume-1-number-10-october-1975-600dpi/Play%20Meter%20-%20Volume%201%2C%20Number%2010%20-%20October%201975/page/31}}</ref>

In 1974, Atari engineer Harold Lee proposed a home version of ''Pong'' that would connect to a television: ''Home Pong''. The system began development under the codename ''Darlene'', named after an  employee at Atari. Alcorn worked with Lee to develop the designs and prototype and based them on the same digital technology used in their arcade games. The two worked in shifts to save time and money; Lee worked on the design's logic during the day, while Alcorn [[Debugging|debugged]] the designs in the evenings. After the designs were approved, fellow Atari engineer Bob Brown assisted Alcorn and Lee in building a prototype. The prototype consisted of a device attached to a wooden pedestal containing over a hundred wires, which would eventually be replaced with a [[integrated circuit|single chip]] designed by Alcorn and Lee; the chip had yet to be tested and built before the prototype was constructed. The chip was finished in the latter half of 1974, and was, at the time, the highest-performing chip used in a [[consumer product]].<ref name="Ultimate-Home1"/>

Bushnell and Gene Lipkin, Atari's vice-president of sales, approached toy and electronic retailers to sell ''Home Pong'', but were rejected. Retailers felt the product was too expensive and would not interest consumers.<ref name="Three Rivers Press">{{cite book|last1=Kent|first1=Steven L/|title=the Ultimate History of Video Games|date=2001|publisher=Three Rivers Press|isbn=0-7615-3643-4}}</ref> Bushnell contacted [[Sears, Roebuck and Company|Sears]] after coming across a [[Magnavox Odyssey]] advertisement in the sporting goods section of its catalog. Atari staff (including Bushnell and Lipkin) discussed the game with a representative, Tom Quinn, who expressed enthusiasm and offered the company an exclusive deal. Believing they could find more favorable terms elsewhere, Atari's executives declined and continued to pursue toy retailers. In January 1975, Atari staff set up a ''Home Pong'' booth at the American Toy Fair (a [[trade fair]]) in [[New York City]], but was unsuccessful in soliciting orders due to high price of the unit.<ref>{{cite book |last1=Smith |first1=Alexander |title=They Create Worlds: The Story of the People and Companies That Shaped the Video Game Industry, Vol. I: 1971–1982 |date=2019 |publisher=CRC Press |isbn=9780429752612 |url=https://books.google.com/books?id=Cxy_DwAAQBAJ&q=Atari+home+pong+toy+trade+fair+1975&pg=PT207 |access-date=16 February 2020}}</ref>

While at the show, they met Quinn again, and, a few days later, set up a meeting with him to obtain a sales order. In order to gain approval from the Sporting Goods department, Quinn suggested Atari demonstrate the game to executives in Chicago. Alcorn and Lipkin traveled to the [[Sears Tower]] and, despite a technical complication in connection with an antenna on top of the building which broadcast on the same channel as the game, obtained approval. Bushnell told Quinn he could produce 75,000&nbsp;units in time for the [[Christmas and holiday season|Christmas season]]; however, Quinn requested double the amount. Though Bushnell knew Atari lacked the capacity to manufacture 150,000&nbsp;units, he agreed.<ref name="Ultimate-Home1"/> Atari acquired a new factory through funding obtained by [[venture capital]]ist [[Don Valentine]]. Supervised by Jimm Tubb, the factory fulfilled the Sears order.<ref name="Ultimate-Home2">{{cite book| title = Ultimate History of Video Games| first = Steven| last = Kent| pages = 84–87| chapter = Could You Repeat That Two More Times?| publisher = Three Rivers Press| isbn = 0-7615-3643-4| year = 2001}}</ref> The first units manufactured, branded with Sears' "Tele-Games" name, started to sell around the end of October<ref name="1975-10-11 Cash Box">{{cite magazine |title=Atari Markets 'Pong' TV Home Unit; Consumer Distribution Thru Sears |url=https://archive.org/details/cashbox37unse_19/page/48/mode/2up?q=pong |access-date=19 August 2023 |magazine=Cash Box |date=1975-10-11}}</ref> to mid November 1975<ref name="1975-11-15 Cash Box">{{cite magazine|title=Atari Brings 'Pong' Into The Livingroom |url=https://archive.org/details/cashbox37unse_24/page/44/mode/2up?q=pong |access-date=19 August 2023 |magazine=Cash Box|date=1975-11-15 |page=45}}</ref> with a 1-year warranty for $98.95 and an additional $7.95 for the optional AC adapter.<ref name="1975 Sears Christmas Catalog">{{cite book |title=Wish Book for the 1975 Christmas Season |date=1975 |publisher=Sears |page=410 |url=https://archive.org/details/1975-sears-christmas-wish-book/page/410/mode/2up?q=pong |access-date=19 August 2023 |language=English}}</ref> Atari later released a version under its own brand in 1976.<ref name="Gamesutra-Pong">{{cite web| url = https://www.gamedeveloper.com/business/the-history-of-i-pong-i-avoid-missing-game-to-start-industry| title = The History Of Pong: Avoid Missing Game to Start Industry| first = Bill| last = Loguidice| author2 = Matt Barton| website = [[Gamasutra]]| date = 9 January 2009| access-date = 10 January 2009| archive-url = https://web.archive.org/web/20090112004852/http://www.gamasutra.com/view/feature/3900/the_history_of_pong_avoid_missing_.php| archive-date = 12 January 2009| url-status = live| df = dmy-all}}</ref>

===Lawsuit from Magnavox===
[[File:Magnavox-Odyssey-Console-Set.jpg|thumb|alt=Photograph of a dedicated video game console with two input devices connected to it with cables.|The [[Magnavox Odyssey]], invented by [[Ralph H. Baer]], inspired ''Pong''{{'}}s development.]]
In April 1974, Magnavox filed suit against Atari, Allied Leisure, [[Bally Midway]] and [[Chicago Coin|Chicago Dynamics]].<ref name="Magnavox Sues">{{cite news| title = Magnavox Sues Firms Making Video Games, Charges Infringement| newspaper = The Wall Street Journal| date = 17 April 1974}}</ref> Magnavox argued that Atari had infringed on Sanders Associates' patents relating to the concept of electronic ping-pong based on detailed records Ralph Baer kept of the Odyssey's design process dating back to 1966. Other documents included depositions from witnesses and a signed guest book that demonstrated Bushnell had played the Odyssey's table tennis game prior to releasing ''Pong''.<ref name="RB-How">{{cite web| url = https://www.ralphbaer.com/how_video_games.htm| title = Genesis: How the Home Video Games Industry Began| first = Ralph| last = Baer| publisher = R. H. Baer Consultants| year = 1998| access-date = 22 October 2008| archive-url = https://web.archive.org/web/20160424064425/https://www.ralphbaer.com/how_video_games.htm| archive-date = 24 April 2016| url-status = live| df = dmy-all}}</ref><ref name="Ultimate-Legal">{{cite book| title = Ultimate History of Video Games| first = Steven| last = Kent| pages = 45–48| chapter = And Then There Was Pong| publisher = Three Rivers Press| isbn = 0-7615-3643-4| year = 2001}}</ref> In response to claims that he saw the Odyssey, Bushnell later stated that, "The fact is that I absolutely did see the Odyssey game and I didn't think it was very clever."<ref>{{cite AV media | people = Nolan Bushnell | title = The Story of Computer Games | medium = video | publisher = [[Discovery Channel]] |date = 2003}}</ref>

After considering his options, Bushnell decided to settle with Magnavox out of court in June 1976. Bushnell's lawyer felt they could win; however, he estimated legal costs of US$1.5 million, which would have exceeded Atari's funds. Magnavox offered Atari an agreement to become a licensee for US$1.5 million payable in eight installments. In addition, Magnavox obtained the right to full information on Atari products publicly announced or released over the next year.<ref name="RB-How"/><ref name="Ultimate-Legal"/> Magnavox continued to pursue legal action against the other companies, and proceedings began shortly after Atari's settlement. The first case took place at the [[United States District Court for the Northern District of Illinois|district court]] in Chicago, with Judge John Grady presiding. Magnavox won the suit against the remaining defendants.<ref name="RB-How"/><ref name="Ultimate-Legal"/><ref name="Ultimate-CourtYr">{{cite book| title = Ultimate History of Video Games| first = Steven| last = Kent| page = 201| chapter = A Case of Two Gorillas| publisher = Three Rivers Press| isbn = 0-7615-3643-4| year = 2001}}</ref> Atari may have delayed the announcement of the [[Atari 2600]] by a few months to avoid disclosing information about the system under the settlement agreement.<ref name="Ultimate-Legal"/><ref name="atari fun chp5">{{cite book | title = Atari Inc: Business is Fun | first1 = Marty | last1 = Goldberg | first2 = Curt | last2 = Vendel | year = 2012 | isbn = 978-0985597405 | publisher = Sygyzy Press | chapter=Chapter 5 }}</ref>