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
Early history of video games determine interest and optimal per-game pricing. Only prototype units were ever built, though the second prototype was adapted to run up to eight games at once; a few months before the initial installation at Stanford in November 1971, the pair met with Nolan Bushnell, who informed them of his own game he was making for a much lower price. That game was "Computer Space", developed by Bushnell and Ted Dabney. They had found the Data General Nova, a US$4,000 computer that they thought would be powerful enough to run four games of "Spacewar" at once; the computer turned out to