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
Ted Dabney these, he worked for several companies, including Raytheon and Fujitsu, and at other times working on his own projects for his own video game company Syzygy Game Company, where he made games that Bushnell used for his Pizza Time Theaters, including an arcade quiz game based on science fiction writer Isaac Asimov. Dabney also helped with the automated ticket number system used by the restaurants. When Pizza Time Theater went under, and Bushnell could not pay Dabney what he owed him, Dabney opted to close down Syzygy, and ended his friendship with Bushnell. Dabney went to work at Teledyne for