Atari 2600 set of games. Further, while they could continue to take games they had created for arcade machines to home consoles, this development step cost at least and time to complete, and once on the market, had only about a three-month shelf life before being outdated, making this a risky move. In 1974, Atari had acquired Cyan Engineering, an electronics company founded by Steve Mayer and Larry Emmons, both former colleagues of Bushnell and Dabney from Ampex, and started Atari's Grass Valley Think Tank, where they were involved with coming up with new ideas for arcade games. Based on Bushnell's concern
Computer Space Ted Dabney "Spacewar" at the Stanford laboratory, and the two agreed to work together to try and design a prototype of the game; Bushnell was more experienced with computers and digital engineering, while Dabney was more experienced with analog and hardware engineering, as he had been working on designing video processing and control circuits and power supplies. After agreeing on an initial idea, Bushnell and Dabney began trying to design a prototype based on a Data General Nova. Initially they were joined by Larry Bryan, a computer programmer who also worked at Ampex. Bushnell and Dabney put US$100 each into