Nolan Bushnell companies to approach to buy Atari. Meanwhile, Steve Ross, CEO of Warner Communications, noticed that his children were hovering around video game cabinets at Walt Disney World. Warner Communications was contacted about Atari by one of its investors to discuss purchasing the company. For $28 million, Warner Communications (now WarnerMedia) bought Atari, bringing the capital they needed for the VCS launch, which took place in August 1977. In November 1978, Bushnell was forced out of the company after a dispute with Warner over its future direction, notably on the lifespan of the Atari 2600 and their closed software strategy, which
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.