The Accidental Gold Mine: The Invention of the Video Game Pong

In the early days of video game consoles, Magnavox created a device called the Odyssey, the first home video game console. They didn't realize the potential of the market and saw it as a demo to help sell TVs. Despite their lack of understanding, the Odyssey became a success, selling hundreds of thousands of units. Nolan, the founder of Atari, saw a demonstration of Table Tennis, a game on the Odyssey, and recognized its potential. He asked Al Alcorn, an engineer at Atari, to create something similar as a test project. Alcorn created the game Pong, and it became a huge hit when they set up a cabinet in a local tavern. It was relatable and accessible to average people, leading to its popularity. Atari started producing cabinets and selling them to bars and arcades. They attracted the attention of venture capitalist Don Valentine, who made Atari the first investment for Sequoia Capital. Atari also hired Steve Jobs to design a solo version of Pong called Breakout, which led to the birth of three industries: home video game consoles, arcade video games, and personal computers.