Arcade game Invaders", however, dealt a yet more powerful blow to the popularity of electro-mechanical games. In 1971 students at Stanford University set up the "Galaxy Game", a coin-operated version of the Spacewar video game. This ranks as the earliest known instance of a coin-operated video game. Later in the same year, Nolan Bushnell created the first mass-manufactured game, "Computer Space", for Nutting Associates. In 1972, Atari was formed by Nolan Bushnell and Ted Dabney. Atari essentially created the coin-operated video game industry with the game "Pong", the first successful electronic ping pong video game. "Pong" proved to be popular, but imitators
Nolan Bushnell restaurant executive and focused on Catalyst Technologies. Through 1981 and 1982, Bushnell concentrated on PTT subsidiaries Sente Technologies and Kadabrascope. Sente was a reentry into the coin-operated game business. Arcade cabinets would have a proprietary system and a cartridge slot developed by Data East Corporation, so operators could refresh their games without having to buy whole new cabinets. Kadabrascope was an early attempt at computer assisted animation. In 1983 as the restaurants started to lose money, Sente, though profitable, was sold to Bally for $3.9 million and Kadabrascope was sold to Lucas which became the beginnings of what became Pixar.