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.
Handheld game console
In 1987, Epyx created the Handy Game; a device that would turn into the Atari Lynx in 1989. It is the first color handheld console ever made, as well as the first with a backlit screen. It also features networking support with up to 17 other players, and advanced hardware that allows the zooming and scaling of sprites. The Lynx can also be turned upside down to accommodate left-handed players. However, all these features came at a very high price point, which drove consumers to seek cheaper alternatives. The Lynx is also very unwieldy, consumes batteries very quickly, and lacked the third-party support enjoyed by its competitors. Due to its high price, short battery life, production shortages, a dearth of compelling games, and Nintendo's aggressive marketing campaign, and despite a redesign in 1991, the Lynx became a commercial failure. Despite this, companies like Telegames helped to keep the system alive long past its commercial relevance, and when new owner Hasbro released the rights to develop for the public domain, independent developers like Songbird have managed to release new commercial games for the system every year until 2004's "Winter Games".