Rebound (video game)
Development of "Rebound" began in late 1973, as one of several variations they produced in 1974 on the gameplay of the successful "Pong" (1972), Atari's first game and the fourth-ever arcade game. Around the same time, Atari launched Kee Games, a subsidiary meant to produce clone games of Atari's products and act as a competitor in order to expand into more distribution channels in the same region than the industry typically supported. Kee's first game, released in March 1974, was "Spike", a clone of "Rebound", which added a "spike" button to the game that made the paddle jump up and attempt to bounce the ball downwards instead of up. In addition to the base game, Atari sold a conversion kit to convert any Atari two-player "Pong" variant into "Rebound", and in 1977 "Rebound" was included in "Video Olympics" for the Atari 2600, a collection of "Pong" variants.
1980s in video gaming
Following a dispute over recognition and royalties, several of Atari's key programmers split and founded their own company Activision in late 1979. Activision was the first third-party developer for the Atari 2600. Atari sued Activision for copyright infringement and theft of trade secrets in 1980, but the two parties settled on fixed royalty rates and a legitimizing process for third parties to develop games on hardware.