Atari, Inc. Atari, Inc. Atari, Inc. was an American video game developer and home computer company founded in 1972 by Nolan Bushnell and Ted Dabney. Primarily responsible for the formation of the video arcade and modern video game industries, the company was closed and its assets split in 1984 as a direct result of the North American video game crash of 1983. In 1966, Nolan Bushnell saw "Spacewar!" for the first time at the University of Utah. By 1968, Bushnell had become an employee of Ampex in San Francisco, and worked alongside Ted Dabney. The two found they had shared interests, including
History of video games Sega Enterprises's "Periscope" (1967) and Chicago Coin's "Speedway" (1969) pioneered the adoption of elaborate visual displays and electronic sound effects in the amusement arcade. Consequently, when a recent engineering graduate from Utah with experience running coin-operated equipment named Nolan Bushnell first saw "Spacewar!" at SAIL in late 1969 or early 1970, he resolved to build a coin-operated version for public consumption. Enlisting the aid of an older and more experienced engineer named Ted Dabney, Bushnell built a variant of the game called "Computer Space" in which a single player-controlled spaceship dueled two hardware-controlled flying saucers. Released in late November or