Nutting Associates redesigned version of the device called "Computer Quiz" (1967) created by Richard Ball of Marketing Services. In 1968 the model was redesigned into a solid-state version. In 1971, Nolan Bushnell sold Nutting Associates on manufacturing the game "Computer Space" (1971). About 1,500 units were manufactured. Afterwards, Bushnell wanted a large ownership stake in the company to continue creating games for Nutting Associates, but left after not being given that opportunity to form Atari Inc. with Ted Dabney. Nutting Associates continued manufacturing video games up until 1977 when the company was sold to "Si" Redd. A new Nutting Associates company was
Ted Dabney their military products section. This work led to him becoming involved in early video imagery products within Ampex, including vidicon systems. By around 1969 Ampex had also hired Nolan Bushnell, who worked alongside Dabney and where they became friends. Bushnell, prior to joining Ampex, had come up with the idea of making a carnival-like pizza place with animatronics and games, and discussed this idea with Dabney. After seeing a computer system at the Stanford Artificial Intelligence Laboratory, the two came up with the concept of using a smaller computer or video systems, adding coin slots, and allowing people to pay