Crash Course Games: The Business of Video Games

Early History of Video Games

• Pre-1970s Era
  • Video games were created by individuals with access to expensive computers, mostly at universities.
  • A community of students and academics played early video games, envisioning a future where video games could be widespread and profitable.

Nolan Bushnell's Impact

• Nolan Bushnell

  • Important figure in video game history, changed the industry's trajectory.
  • Studied at the University of Utah, a hub for computer graphics research.
  • Discovered Steve Russell's game Spacewar!, which sparked his interest in video games.

• Amusement Park Experience

  • Worked as a barker at an amusement park, learning to draw people to games.
  • Combined experiences in amusement and programming to innovate in games.

Formation of Atari

• Computer Space

  • Created after college, inspired by Spacewar! but not commercially successful.
  • Partnered with Nutting & Associates, but blamed them for the game's poor sales.

• Founding Atari

  • Founded with $500 after abandoning the name Syzygy in favor of Atari, a term from the game Go.
  • The name Atari implies a strategic moment akin to saying "check" in chess.

Atari's Early Success and Challenges

• Pong Development

  • Al Alcorn created Pong, a table tennis simulation, under Bushnell's direction.
  • Developed from basic components like a home TV and a bread pan for coins.
  • Pong became a hit despite its rudimentary design.

• Market Competition

  • Pong's success led to numerous clones by other gaming companies.
  • Atari's lack of patents allowed competitors to create similar games.

• Kee Games Strategy

  • Formed Kee Games to bypass distributor contracts, selling identical Atari games under a different name.
  • This tactic eventually led to the end of exclusive distribution contracts.

Atari's Continued Innovation and Influence

• Success in Arcades

  • Continued to release popular games like Gotcha and Breakout.

• Impact of Breakout

  • Steve Jobs and Steve Wozniak worked on Breakout, influencing future projects like the Apple II.
  • Inspired other games, such as Space Invaders.

Atari's Move to Home Gaming

• Home Version of Pong

  • Sold through Sears, expanding the market into consumers' homes.

• Atari 2600 Console

  • Released in 1977, featuring interchangeable game cartridges, a significant innovation.
  • Initial slow sales due to high price and limited game selection.
  • Spawned the console wars and became a cultural icon in movies.

Conclusion

• Atari's Decline and Legacy
  • Dominated the gaming industry through the late 70s and early 80s.
  • Faced a downturn during the video game crash of the 1980s.
  • Continues to exist but without Bushnell, not as influential as its peak.

Supporting Crash Course

• Encouragement to support Crash Course through Patreon, crediting specific patrons for their support.