Atari, Inc. Atari, Inc. Atari, Inc. was an American video game developer and home computer company founded in 1972 by Nolan Bushnell and Ted Dabney. Primarily responsible for the formation of the video arcade and modern video game industries, the company was closed and its assets split in 1984 as a direct result of the North American video game crash of 1983. In 1966, Nolan Bushnell saw "Spacewar!" for the first time at the University of Utah. By 1968, Bushnell had become an employee of Ampex in San Francisco, and worked alongside Ted Dabney. The two found they had shared interests, including
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