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.
LucasArts
The first products from the Games Group were unique action games like "Ballblazer" in 1984, and "Rescue on Fractalus!". Beta versions of both games were leaked to pirate bulletin boards exactly one week after Atari had received unprotected copies for a marketing review, and were in wide circulation months before the original release date. In 1984, they were released for the Atari 5200 under the Lucasfilm Games label. Versions for home computers were not released until 1985, by publisher Epyx. Lucasfilm's next two games were "Koronis Rift" and "The Eidolon". Their first games were only developed by Lucasfilm, and a publisher would distribute the games. Atari published their games for Atari systems, Activision and Epyx would do their computer publishing. "Maniac Mansion" was the first game to be published and developed by Lucasfilm Games.