It was in 1971 that Nolan Bushnbell got together with Ted Dabney and created the first coin-operated computer game for use in arcades. They called it “Computer Space.” It was based on Steve Russell’s earlier created game called “Spacewar!” Later in 1972 Bushnell and Al Alcorn would create the game “Pong,” which became an overnight sensation shortly after it came out. Later that same year both Bushnell and Ted Dabney began the company “Atari.”
Pong was released again in 1975 only this time it entered homes as a video game. Approximately 150,000 of them found their way into U.S. households. With this great success, Bushnell made $28 million by selling his company to Warner Communications. This 1976 purchase ended up being a bargain for Warner Communications since total sales for the Atari home video systems reached $415 million by 1980. They also released their first edition of Atari personal computer. To ensure continued success, Bushnell had stayed on as president of the company.
Unfortunately, by 1983 Warner Communications dealt with losses of $533 million despite Atari’s new computer. They made the decision to unload Atari to the ex-CEO of Commodore, Jack Tramiel. He released a new version of the home computer called Atari St. This turned things around as sales of the new computer rose to $25 million by 1986.
In 1992 Atari released a new video game system called Jaguar. It was in direct competition to Nintendo. Though the gaming system was impressive it ended up being twice as expensive as Nintendo. Atari also faced an anti-trust lawsuit with Nintendo that same year which they lost.
The end of Atari as a company began in 1994. Sega game systems purchased all patent rights from Atari for $40 million. By 1998 JTS, the new owner of Atari sold its assets. Its final trademarks, patents and copyrights were purchased for $5 million by Hasbro Interactive.










