Atari
In 1971, Nolan Bushnell and Ted Dabney founded a small engineering company, Syzygy Engineering, that designed and built "Computer Space", the world's first commercially available arcade video game, for Nutting Associates. On June 27, 1972, the two incorporated Atari, Inc. and soon hired Al Alcorn as their first design engineer. Bushnell asked Alcorn to produce an arcade version of the Magnavox Odyssey's Tennis game, which would be named Pong. While Bushnell incorporated Atari in June 1972, Syzygy Company was never formally incorporated. Before Atari's incorporation, Bushnell considered various terms from the game Go, eventually choosing "atari", referencing a position in the game when a group of stones is imminently in danger of being taken by one's opponent. Atari was incorporated in the state of California on June 27, 1972.
In 1973, Atari secretly spawned a competitor called Kee Games, headed by Nolan's next door neighbor Joe Keenan, to circumvent pinball distributors' insistence on exclusive distribution deals; both Atari and Kee could market virtually the same game to different distributors, each getting an "exclusive" deal. Joe Keenan's management of the subsidiary led to him being promoted president of Atari that same year.
History of video games
In the early days of the programmable market, all of the games for a given system were developed by the firm that released the console. That changed in 1979 when four Atari programmers, seeking greater recognition and financial reward for their contributions, struck out on their own to form Activision, the first third-party developer. The company went on to develop a string of hits including "Kaboom!" (1981), "River Raid" (1982), and "Pitfall!" (1982), recognized as one of the foundational games of the scrolling platformer genre. In 1981, another group of Atari employees joined with ex-Mattel staff to form Imagic and experienced success with games like "Demon Attack" (1982) and "Atlantis" (1982).