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
Nolan Bushnell Pizza Place, a competing Pizza/Arcade family restaurant, then purchased Chuck E. Cheese's Pizza Time Theatre and assumed its debt. The newly formed company, ShowBiz Pizza Time, operated restaurants under both brands before unifying all locations under the Chuck E. Cheese's brand by 1992. Today over 500 locations of this restaurant are in business. Bushnell founded Catalyst Technologies, one of the earliest business incubators. The Catalyst Group companies numbered in the double digits and included Androbot, Etak, Cumma, and Axlon. Axlon launched many consumer and consumer electronic products successfully, most notably AG Bear, a bear that mumbled/echoed a child's words back