History of video games market in 1978 with the Odyssey, while toy company Mattel released the Intellivision in 1979, which featured graphics superior to any of its competitors. After both Atari and Fairchild made a strong showing in 1977, the market hit a difficult patch in 1978 when retailers resisted building inventory, believing that the newly emerging electronic handheld market would displace video games. Atari, for example, manufactured 800,000 systems, but proved unable to sell more than 500,000 to retail. This helped precipitate a crisis at the company that saw co-founder and chairman Nolan Bushnell and president Joe Keenan forced out by Atari's parent
Spacewar! coin-operated video games. While playing "Spacewar" at Stanford sometime between 1966 and 1969, college student Hugh Tuck remarked that a coin-operated version of the game would be very successful. While the high price of a minicomputer prevented such a game from being feasible then, in 1971 Tuck and Bill Pitts created a prototype coin-operated computer game, "Galaxy Game", with a US$20,000 PDP-11. Around the same time, a second prototype coin-operated game based on "Spacewar", "Computer Space", was developed by Nolan Bushnell and Ted Dabney, which would become the first commercially sold arcade video game and the first widely available video