Space Race (video game)
Development of "Space Race" began soon after the founding of Atari in Summer 1972 under the name "Asteroid". Co-founders Nolan Bushnell and Ted Dabney had the initial idea for the game while developing the 1971 "Computer Space", the first arcade video game, but felt the more complicated "Computer Space" was a better first game. After leaving Nutting Associates and founding Atari in May 1972, Bushnell spent a few days designing "Asteroid", but soon had to drop the project to focus on running the company. After the release of "Pong", Atari's first game, development resumed on the title in Spring 1973. Dabney has claimed credit for the game's final design, though "Pong" designer Allan Alcorn has stated that he and Bushnell may have been involved as well. "Asteroid", codenamed VP-2, was designed to be a racing game that would be simple to create to fulfill an earlier contract with Bally Midway; Atari had initially offered "Pong" during its development to fulfill the contract, but had been rejected. The company was also interested in producing a very different game from their previous success, as they felt that innovative design was what would separate them from their competitors, which they saw as flooding the market with "Pong" clones rather than making new video games.
Atari
Under Tramiel's ownership, Atari Corp. used the remaining stock of game console inventory to keep the company afloat while they finished development on a 16/32-bit computer system, the Atari ST. ("ST" stands for "sixteen/thirty-two", referring to the machines' 16-bit bus and 32-bit processor core.) In April 1985, they released the first update to the 8-bit computer line — the Atari 65XE, the Atari XE series. June 1985 saw the release of the Atari 130XE; Atari User Groups received early sneak-preview samples of the new Atari 520ST's, and major retailer shipments hit store shelves in September 1985 of Atari's new 32-bit Atari ST computers. In 1986, Atari launched two consoles designed under Warner — the Atari 2600jr and the Atari 7800 console (which saw limited release in 1984). Atari rebounded, earning a $25 million profit that year.