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Bushnell and Dabney founded Atari lnc in 1972, before releasing their next game: Pong. Pong was the first arcade video game with widespread success. The game is loosely based on table tennis: a ball is "served" from the center of the court and as the ball moves towards their side of the court each player must maneuver their paddle to hit the ball back to their opponent. Allan Alcorn created Pong as a training exercise assigned to him by Atari co-founder Nolan Bushnell. Bushnell based the idea on an electronic ping-pong game included in the Magnavox Odyssey, which later resulted in a lawsuit against Atari. Surprised by the quality of Alcorn's work, Bushnell and Dabney decided to manufacture the game. Atari sold over 19,000 Pong machines, spawning many imitators.


Another significant game was Gun Fight, an on-foot multi-Directional shooter, designed by Tomohiro Nishikado and released by Taito in 1975. It depicted game characters, game violence, and human-to-human combat, controlled using dual-stick controls. The original Japanese version was based on discrete logic,which Dave Nutting adapted for Midway's American release using the Intel 8080, making it the first video game to use a microprocessor. This later inspired original creator Nishikado to use a microprocessor for his 1978 blockbuster hit, Space Invaders.


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