The 1970s marked a pivotal era in the history of entertainment, witnessing the birth and rapid evolution of the video game industry. From the humble beginnings of basic arcade games to the emergence of home consoles and the rise of Japanese developers, this decade laid the groundwork for the multi-billion dollar industry we know today.
At the heart of this story is Nolan Bushnell, a visionary entrepreneur whose experiences working with amusement park midway games gave him unique insights into creating engaging and profitable games.
In 1971, Bushnell and fellow engineer Ted Dabney created Computer Space, widely considered the first commercially available arcade video game. However, it was Bushnell’s next creation, Pong, that truly revolutionized the industry. Developed in 1972 with the help of Al Alcorn, a talented engineer hired by Bushnell, Pong became a massive commercial success. The simple yet addictive gameplay, combined with Bushnell’s business savvy and Alcorn’s technical skills, made Pong a cultural phenomenon.
Pong’s success attracted a wave of competitors to the burgeoning video game market, setting the stage for a decade of rapid innovation and growth. Atari, the company Bushnell founded to produce Pong, found itself constantly needing to innovate and release new games to stay ahead of imitators and rival companies.
Atari continued to expand its offerings beyond just Pong. The company introduced racing games like Gran Trak 10 in 1974, capitalizing on the popularity of Formula 1 racing, and diversified into other genres with titles such as Tank (1974), one of the earliest combat video games, and Breakout (1976), a single-player game where the objective was to destroy layers of bricks by deflecting a ball with a paddle.
However, cultural differences began to emerge as Atari grew larger. The sale of Atari to media giant Warner Communications in 1976 brought a much-needed infusion of capital to fuel expansion, but also highlighted the stark contrast between Atari’s free-wheeling, risk-taking culture and Warner’s more traditional corporate approach. This clash of cultures would eventually lead to Bushnell’s departure from the company he founded in 1978.
Atari entered the home market in 1975 with Home Pong, which brought the arcade experience into living rooms across the country. The Atari Video Computer System (VCS), later renamed the Atari 2600, was introduced in 1977. It featured interchangeable game cartridges, expanding the console’s library and popularizing the business model of selling razors to sell blades (i.e. selling inexpensive consoles to sell profitable games).
In 1976, the release of the Fairchild Channel F console heralded a new era, as it introduced the first programmable ROM cartridges that allowed consoles to play multiple games. This marked a turning point, as consumers could now expand their game libraries without needing to buy new hardware. The Atari 2600‘s success was driven in large part by the release of the arcade hit Space Invaders for the console in 1980, quadrupling sales of the system.
As the 1970s drew to a close, the video game industry found itself in a period of transition. Game developers began experimenting with handheld devices like Milton Bradley’s Microvision (1979), and exploring the potential of personal computers for gaming, with the release of early computer RPGs like Akalabeth: World of Doom (1979) and Rogue (1980) in the final year of the decade.
Meanwhile, tensions between Nolan Bushnell and Warner Communications reached a breaking point, leading to Bushnell’s eventual departure from the company he founded in 1978. Atari continued forward under new leadership, but Bushnell’s exit marked the end of an era.
In Japan, a new generation of developers was emerging that would reshape the industry in the coming decade. Namco found success in the arcades with Galaxian (1979), a colorful evolution of Space Invaders. Nintendo released Radar Scope in 1979, which, while unsuccessful in the West, marked their entry into the arcade market. The most momentous release, however, was Space Invaders in 1978. Developed by Taito, it sparked a surge in the popularity of video games in Japan that laid the foundation for the Japanese industry’s global dominance in the 1980s.
The 1970s were a time of immense creativity, innovation, and growth for the video game industry. Atari and its founder Nolan Bushnell played a pivotal role in shaping the future of gaming, from the birth of the arcades to the rise of home consoles.
The competition between Atari and rival companies drove technological advancements and expanded the types of gaming experiences available, from basic sports games to more complex titles in a variety of genres. The cultural impact of early hits like Pong and Space Invaders cannot be overstated – they ignited a global phenomenon and established video games as a new form of mainstream entertainment.
Looking back, we can see the seeds of today’s gaming industry taking root in the 1970s. The technological innovations, creative experimentation, savvy marketing, and new business models of this era laid the foundation for the exponential growth and evolution of video games in the decades that followed. The 1970s marked the birth of a new industry that would go on to reshape the entertainment landscape. Modern gamers owe a great debt to the pioneers of the 1970s who dared to imagine a new realm of electronic entertainment and bring it to life.
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