Atari (Original)

In 1972, Nolan Bushnell and Ted Dabney founded Atari, a company that would define electronic entertainment for a generation. Their first major success, Pong, was a simple arcade tennis game that became a cultural phenomenon after its release the same year. The initial prototype, placed in a local tavern, broke down because it was jammed full with quarters, signaling the massive demand to come. This early arcade success paved the way for Atari to enter the home market. In 1976, needing capital to launch their revolutionary home console, Bushnell sold Atari to Warner Communications for $28 million. The following year, the Atari Video Computer System (VCS), later known as the Atari 2600, was released. Its use of swappable game cartridges was a game-changer, allowing players to enjoy a variety of titles on a single machine. Under Warner's ownership, Atari experienced explosive growth, becoming the fastest-growing company in U.S. history at its peak. However, this rapid expansion led to a market saturated with games, many of poor quality. This, combined with intense competition, contributed to the video game crash of 1983, where industry revenues plummeted by nearly 97%. Facing massive losses, Warner sold Atari's consumer division to Jack Tramiel in 1984, marking the end of an era for the original gaming pioneer.