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.
Gran Trak 10
Allan Alcorn, the designer of "Pong", took a leave of absence from the company beginning in September 1973, and around the same time Steve Bristow, who had previously worked with the founders of Atari on the first arcade video game "Computer Space", left to co-found Kee Games. This in turn left Lloyd Warman, new to the company, as the head of engineering for Atari during "Gran Trak"s development. Alcorn and Emmons have stated that they felt Warman was a good engineer but a poor project manager, which led to the "Gran Trak" project running behind schedule and having several design problems. This was exacerbated by a new short-lived Atari management team and product development structure, which led to several communication problems and cost overruns. When Atari began production in early 1974, it had difficulties getting enough circuits to build the cabinets from National Semiconductor, who cited a "hybrid" integrated circuit design by Emmons as non-standard, first refusing to sell them to Atari and then producing only small production runs. According to Alcorn, the non-standard design was a tactic to prevent competitors from copying the design, as other manufacturers would be unable to produce it at all.