Nolan Bushnell

Overview

Nolan Bushnell didn’t invent video games, but he invented the video game industry. His company Atari turned arcade games into a business, brought gaming into homes with the 2600, and established Silicon Valley’s startup culture along the way. He also lost control of his creation, watched it nearly destroy itself, and spent decades trying to recapture that original magic.

Fast facts

Born: February 1943 in Clearfield, Utah.
Education: University of Utah, where he encountered early computer graphics.
Atari founded: 1972, with Ted Dabney.
Pong: released November 1972; proved arcade games could be profitable.
Sold Atari: to Warner Communications in 1976 for $28 million.
Chuck E. Cheese: founded 1977; combined pizza, animatronics, and arcade games.
Post-Atari: dozens of ventures, few successful.

The beginning

Bushnell saw Spacewar! at the University of Utah and recognised its potential:

Built Computer Space (1971), the first commercial arcade game—too complex, commercial failure
Simplified the concept with Pong (1972)—instant success
Founded Atari with $250 each from himself and Ted Dabney

The name “Atari” came from the Japanese game Go, meaning roughly “check”—a warning that you’re about to lose.

Building Atari

Bushnell created Silicon Valley’s template:

Casual culture: engineers in t-shirts, hot tubs at company parties, marijuana tolerated.
Rapid iteration: ship fast, learn, improve.
Talent acquisition: hired young engineers including Steve Jobs (briefly).
Vertical ambition: arcade games, home consoles, computers—all from one company.

The sale

Warner Communications bought Atari in 1976:

Bushnell received $28 million
Stayed as chairman initially
Clashed with corporate management
Left in 1978 as Atari became Warner’s problem

The 2600 launched during this transition, becoming both Atari’s greatest success and, eventually, its downfall.

Chuck E. Cheese

Bushnell’s next venture combined his interests:

Family restaurant with arcade games
Animatronic entertainment (he’d worked at Disneyland)
Games as destination, not just diversion
Successful concept that outlasted many of his other ventures

The serial entrepreneur

After Atari, Bushnell started company after company:

Catalyst Technologies (incubator)
Etak (digital mapping)
ByVideo (automated retail)
uWink (entertainment restaurants)
Dozens more, mostly forgotten

None matched Atari’s impact. The magic of being first, being new, being revolutionary—it doesn’t repeat.

Legacy

Bushnell proved video games could be a business at scale. He created the template for gaming companies, startup culture, and the arcade industry. That the company he built eventually contributed to the 1983 crash doesn’t diminish what he started. Without Bushnell, the industry would have emerged differently—perhaps later, perhaps never as explosively.

The father of the video game industry