Editing Nolan Bushnell (section)

===Atari, Inc.===
{{main|Atari, Inc.}}
[[File:Magnavox-Odyssey-Console-Set.jpg|thumb|right|The [[Magnavox Odyssey]] provided the inspiration for Bushnell's successful [[Pong]].]]
In 1972, Bushnell and Dabney set off on their own, and learned that the name "Syzygy" was in use; Bushnell has said at different times that it was in use by a candle company owned by a [[Mendocino, California|Mendocino]] hippie commune<ref name="doteaters">{{cite web|title=PONG and Atari|url=http://thedoteaters.com/?bitstory=article-3|access-date=May 15, 2007}}</ref><ref name="videgamenet">{{cite web|title=Atari History|url=http://www.vidgame.net/ATARI/ATARI.html|access-date=May 15, 2007|url-status=dead|archive-url=https://web.archive.org/web/20070505050437/http://www.vidgame.net/ATARI/ATARI.html|archive-date=May 5, 2007}}</ref><ref name="SteveKent">{{cite book|last=Kent| first=Steven L.|author-link=Steven L. Kent|title=The Ultimate History Of Video Games|publisher=Prima Publishing|year=2001|page=35|isbn=0-7615-3643-4 }}</ref> and by a roofing company.<ref name="moby"/> They instead incorporated under the name '''Atari''', a reference to a check-like position in the game [[Go (board game)|Go]] (which Bushnell has called his "favorite game of all time"<ref name="favoritegame">Archived at [https://ghostarchive.org/varchive/youtube/20211211/cR9yJNf6R7Y Ghostarchive]{{cbignore}} and the [https://web.archive.org/web/20131103032149/http://www.youtube.com/watch?v=cR9yJNf6R7Y Wayback Machine]{{cbignore}}: {{cite video|title=Video interview with Go as his favorite game|url=https://www.youtube.com/watch?v=cR9yJNf6R7Y}}{{cbignore}}</ref>).

They rented their first office on Scott Boulevard in [[Sunnyvale, California]], contracted with [[Bally Manufacturing]] to create a video game and a pinball table, and hired their second employee, [[engineer]] [[Allan Alcorn]].<ref name="NGen23"/> Bushnell pitched Bally on a hockey video game.<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=May 20, 2021 |work=[[Lemelson Center for the Study of Invention and Innovation]] |publisher=[[Smithsonian Institution]] |date=November 17, 2017 |page=32-34}}</ref>

After Bushnell attended a [[Burlingame, California]] demonstration of the [[Magnavox Odyssey]], he gave the task of making a similar product to the Magnavox table tennis game to Alcorn as a test project. He told Alcorn that he was making the game as a consumer product for General Electric, in order to motivate him.<ref name="NGen23"/> Alcorn incorporated many of his own improvements into the game design, such as the ball speeding up the longer the game went on, and ''[[Pong]]'' was born. ''Pong'' proved to be very popular; Atari released a large number of ''Pong''-based [[arcade video game]]s over the next few years as the mainstay of the company.  After the release of ''Pong'', Bushnell and Dabney had a falling-out: Dabney felt he was being pushed to the side by Bushnell,<ref name="dabneyinterview">{{Cite web|title=Oral History of Samuel F. (Ted) Dabney|url=http://archive.computerhistory.org/resources/access/text/2012/10/102746459-05-01-acc.pdf|date=July 16, 2012|website=Computer History Museum}}</ref> while Bushnell felt Dabney was holding back the company from larger financial success.<ref name="atari fun chp3">{{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 3| pages = [https://archive.org/details/atariincbusiness0000gold/page/93 93–96] | chapter-url = https://archive.org/details/atariincbusiness0000gold/page/93 }}</ref> Bushnell purchased Dabney's share of Atari for {{USD|250,000|long=no}} in 1973.<ref name="atari fun chp3"/>

To get more arcade games to market and bypass exclusivity limitations that coin-op game distributors had set, Bushnell discreetly had his neighbor Joe Keenan establish [[Kee Games]] in 1973 to manufacture [[video game clone|near-copies]] of Atari's games.<ref>{{Cite magazine|url=https://www.rollingstone.com/glixel/news/lists/ataris-forgotten-arcade-classics-w485407/quadrapong-w485411|title=Atari's Forgotten Arcade Classics|magazine=Rolling Stone|access-date=December 8, 2017|archive-date=December 8, 2017|archive-url=https://web.archive.org/web/20171208101429/http://www.rollingstone.com/glixel/news/lists/ataris-forgotten-arcade-classics-w485407/quadrapong-w485411|url-status=dead}}</ref> Even with Kee's output, Atari had difficulty meeting demand for arcade games, and by 1974 Atari was facing financial hardships in part due to the competition in the arcade game market. Bushnell opted to merge Kee Games into Atari in September 1974 just ahead of the release of ''[[Tank (video game)|Tank]]'', a wholly original arcade game from Kee. ''Tank'' was an arcade success and helped bolster Atari's finances. Keenan became president of Atari and managed its operations while Bushnell retained his CEO role.<ref name="atari fun intermission pains">{{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=Intermission: Growing Pains }}</ref>

[[File:Atari-2600-Wood-4Sw-Set.jpg|thumb|right|The [[Atari 2600]] would go on to revolutionize the home gaming market, but Bushnell was forced out of Atari not long after its release.]]
With the company financially stable, Atari entered the consumer electronics market, with its home ''Pong'' consoles first released in 1975. Atari continued to make variants of its existing arcade games for dedicated home consoles until 1977.<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 = January 9, 2009| access-date = January 10, 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 = January 12, 2009| url-status = live| df = dmy-all}}</ref> During this period, former Atari employees [[Steve Jobs]] and [[Steve Wozniak]] had approached Bushnell about investing in their home computer system, the [[Apple I]], that was built from borrowed parts from Atari and with technical support from Atari employees.<ref name="pcb">{{cite book|last=Young|first=Jeffrey S.|title=Steve Jobs: The Journey Is The Reward|publisher=Scott, Foresman and Company|year=1988|location=Glenview, Illinois, USA|pages=90–91, 94|isbn=0-673-18864-7}}</ref> They initially offered the design to Bushnell and Atari, but Bushnell wanted Atari to focus on arcade and home consoles. Later in 1975, Jobs offered Bushnell a chance for one-third equity stake in their budding company [[Apple Inc.]], for {{USD|50,000|long=no}}; Bushnell remarked in hindsight, "I was so smart, I said no. It's kind of fun to think about that, when I'm not crying."<ref>Book "Steve Jobs" by Walter Isaacson, Simon & Schuster, 2011, Pg.75</ref> Bushnell also established the first [[Pizza Time Theatre]] in San Jose in 1977 as a means for Atari to stock its arcade games.<ref name="gamasutra history atari"/>

As Atari faced more competition in both arcade and home consoles from 1975 onward, Bushnell recognized that the costs in developing both types of systems with only limited shelf life were too high, and directed Atari's engineers at [[Cyan Engineering]] towards a programmable home console.<ref name="gamasutra history atari">{{cite web | url = https://www.gamedeveloper.com/business/the-history-of-atari-1971-1977 | title = The History of Atari: 1971–1977 | first=  Steve | last =Fulton | date = November 6, 2007 | access-date = September 11, 2018 | work = [[Gamasutra]] }}</ref> This console eventually was released in 1977 as the [[Atari Video Computer System]] or Atari VCS and later known as the Atari 2600. However, before Atari had completed its design, the [[Fairchild Channel F]], the first home console to use [[game cartridge]]s, was released in November 1976. Bushnell realized they needed to speed up the Atari VCS's development. After initially considering become a [[public company]], he instead sought a buyer. [[Warner Communications]], looking to boost their own failing media properties, agreed to acquire Atari for {{USD|28 million|long=no}}, with Bushnell personally receiving {{USD|15 million}}, in November 1976.<ref name="inc bushnell 1984"/><ref name="NGen4">{{cite journal|title=What the Hell has Nolan Bushnell Started? |journal=[[Next Generation (magazine)|Next Generation]]|issue=4|publisher=[[Imagine Media]]|date=April 1995|pages=6–11}}</ref> Warner provided a large investment into the Atari VCS to allow it to be completed early the next year and released in September 1977.<ref name="gamasutra history atari"/>

The first year of Atari VCS sales were modest and limited by Atari's own supply. While many of initial games were arcade conversions of Atari arcade games, the second wave of games in 1983 were more abstract and difficult to promote. Warner placed [[Ray Kassar]], a former vice president of [[Burlington Industries]], to help with Atari's marketing.<ref name="gamasutra history atari 2">{{cite web | url = https://www.gamasutra.com/view/feature/3766/atari_the_golden_years__a_.php?print=1 | archive-url = https://web.archive.org/web/20080825070916/http://www.gamasutra.com/view/feature/3766/atari_the_golden_years__a_.php?print=1 | url-status = dead | archive-date = August 25, 2008 | title = Atari: The Golden Years – A History, 1978–1981 | first= Steve | last= Fulton | date = August 21, 2008 | access-date = April 6, 2021 | work = [[Gamasutra]] }}</ref> Kassar created successful advertising and marketing throughout 1978, positioning the Atari VCS for a larger sales period at the end of the year.<ref name="gamasutra history atari 2"/> However, Bushnell had concerns on Kassar's plans and feared they had produced too many units to be sold, and at a board meeting with Warner near the end of the year, reiterated this position. Bushnell recommended that funds be used in R&D for developing a new, technologically superior console, as he feared rising competition would make the aging tech specs of the VCS obsolete. Bushnell's concerns never materialized as a combination of Kassar's marketing and the popularity of [[Taito]]'s ''[[Space Invaders]]'' at the arcade drove Atari VCS sales. Both Warner Communications and Bushnell commonly recognized he was no longer a good leader for the company, removing him as CEO and Chairman in early 1979. Warner offered Bushnell the opportunity to stay as a director and creative consultant, but Bushnell refused. Before leaving, Bushnell negotiated the rights to Pizza Time Theatre from Atari for {{USD|500,000|long=no}}. Keenan replaced Bushnell but left a few months later, with Kassar being named as Atari's CEO by mid-1979.<ref name="atari fun chp7">{{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 7 }}</ref>