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.
Atari
In 1976, Bushnell, through Grass Valley, CA firm Cyan Engineering, started development of a flexible console that was capable of playing the four existing Atari games. The result was the Atari Video Computer System, or VCS (later renamed 2600 when the 5200 was released). The introductory price of $199 () included a console, two joysticks, a pair of paddles, and the Combat game cartridge. Bushnell knew he had another potential hit on his hands but bringing the machine to market would be extremely expensive. Looking for outside investors, Bushnell sold Atari to Warner Communications in 1976 for an estimated $28–32 million, using part of the money to buy the Folgers Mansion. Nolan continued to have disagreements with Warner Management over the direction of the company, the discontinuation of the pinball division, and most importantly, the notion of discontinuing the 2600. In 1978, Kee Games was disbanded. In December of that year, Nolan Bushnell was fired following an argument with Manny Gerard. "[W]e started fighting like cats and dogs. And then the wheels came off that fall. Warner claimed they fired me," recalled Bushnell. "I say I quit. It was a mutual separation."