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Atari: The Golden Years -- A History, 1978-1981
 
 
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Features
  Atari: The Golden Years -- A History, 1978-1981
by Steve Fulton
22 comments
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August 21, 2008 Article Start Previous Page 7 of 20 Next
 

1979: The Kassar Reign Begins

1979 started as the first full year that Atari did not have Nolan Bushnell at the helm. New president and CEO Ray Kassar moved very quickly to shake things up around the company. One of the first things Kassar did was cancel many engineering projects that he felt unnecessary.

Unfortunately for Atari, this included the "tied-up" N-Channel projects Bushnell had used to stave off VCS competition. This opened the door for a multitude of competitors that would soon challenge Atari for dominance in the home video game arena, including Bally and Mattel.

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"Since there were only six labs in the world that could do N-Channel, you created a virtual monopoly with a series of contracts. It was so simple. Ray Kassar was not a technologist, so he had no clue about what was going on" lxi

- Nolan Bushnell

At the same time, Kassar made several moves to break the hold engineering had on Atari. Aside from cancelling Friday parties, instituting dress codes and core working hours, installing security doors, and hiring a former Secret Service agent to head security for the company, lxii Kassar cut Bob Brown's 30-person R&D staff completely, leaving Atari with a huge gap for developing new products.

"In fact, when Al (Alcorn) told me what had happened I didn't understand what he was saying -- I couldn't conceive of Atari cutting off its future by chopping off its R&D work. It will always be my opinion that being engineering-oriented was what made Atari successful." lxiii

- Bob Brown

Kassar's view was simple: Why did Atari need R&D if the company could not sell the VCS units already stocked in warehouses? It was a logical question, but also one that showed Kassar had little respect for Atari as a creative or pioneering company.

The executive's dire view of Atari's entertainer engineers showed in the contemptuous things he called them in private and to the press. Kassar used terms like "spoiled brats", and "prima donnas" to describe a group that had once been Atari's most valued resource.

To make up for the lost focus on engineering and R&D, Kassar hired a slew of marketing MBAs and increased advertising spending to levels Atari had never seen. The new crop of Atari executives knew nothing of games, and in fact hardly played them.

"Ray Kassar wouldn't be caught dead in an arcade." lxiv

- Howard Delman

Kassar quickly shifted Atari's focus from dreaming up new ideas to selling the ones the company already had. Bushnell had created Atari as company where creativity and innovation could flourish.

"It became this almost passionate religious quest, and the more religious fervor, the better and more interesting the games turned out to be." lxv

- Nolan Bushnell

On the other hand, Warner and Kassar were designing a company that could market the existing product line at the expense of everything else.

"They kind of ripped the core out of what created Atari's brilliance and excellence." lxvi

- Nolan Bushnell

1979: Atari VCS

As 1978 ended and as 1979 began, things were looking-up for the VCS's line-up of games. Night Driver (Larry Kaplan, Rob Fulop) and Adventure (Warren Robinett) were coming along nicely. Those titles were shown at the January CES and were very well received.

At the same time, it looked like Bushnell's push in 1978 to augment the VCS programming team to produce for as many games as possible had paid off, at least in numbers. Many new titles were released in 1979, even while some of the core VCS programmers like Kaplan, Crane, Miller, and Whitehead were busy preparing the OS for the home computer division.

Still though, the quality of the games was an issue. Besides the exceptional Bowling, Canyon Bomber and Sky Diver cartridges, there was nothing earth-shattering in the line-up: Casino, BASIC Programming, Backgammon, Football, Human Cannonball, Miniature Golf, and Slot Machine.

" (Sky Diver) also took about six months as I recall, and I started it before I even knew there was a Sky Diver coin-op game...This was the best selling 2600 game until Space Invaders came out." lxvii

- Jim Huether

Video Chess was created when a consumer from Florida sued Atari because there was a chess piece pictured on the system's box, but no game was available. The VCS programmers did not think a chess game would be possible on the VCS, but with some alternating scan-line tricks they got it to work.

"I do remember discussions in the lab of how 'stupid' it was to assume we can do a chess game and how 'impossible' it was to do. And that's all I needed... you see the word 'impossible', it seems, has always been one of my 'igniters' -- it gets the puzzle solver in me going." lxviii

- Bob Whitehead

Also, Warren Robinett finished the rather bizarre entry into the VCS line-up, BASIC Programming, in June 1979.

"The higher-ups at Atari wanted a cartridge that would allow the user to learn simple programming, and I had been vocal in expressing my interest in doing a programming language before management came up with this. I was the only 2600 programmer who had studied computer science." lxix

- Warren Robinett

 
Article Start Previous Page 7 of 20 Next
 
Comments

Clay Cowgill
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Mr. Fulton-- you officially owe me about an hour and a half of my workday!

Thanks for the great article, although I must say that I find the claim that the VIC-20 was more powerful than an Atari 400 a bit tough to swallow... ;-)

-Clay

Steve Fulton
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Clay,

Thanks. That probably should read "arguably more powerful" or "perceived as more powerful". In retrospect, it wasn't.

-Steve

Bruce Atkinson
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The Vic-20 had a real keyboard and similar processor. It didn't have the memory, graphics chips, or operating system that the 400 and 800 had. The Atari OS was much better than most people give it credit it for. It was general purpose with loadable device drivers, before most other home computers had that.

John Abbe
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I couldn't stop myself from reading this through either. And i'm so glad i did, because i'm pretty sure i played that game Nightmare that GCC made for Atari, at 1001 Plays in Cambridge - it was a *great* game, which i tried to find again for years. Too bad they never released it, i've e-mailed GCC to see if i can contact any of the developers to see if they have ROMs for MAME. I also updated their Wikipedia page, and referenced this article.

Thomas Djafari
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Great article!
Having worked at Time Warner, back in the SF Rush / Rise of the Robots era, I totally recognize the pattern that has also poisoned most large developers :)

Jason Cumming
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Enjoyed the article immensely.
Sorry to be a pingeek but I think there's a misplaced comma: Superman the pinball, more like 3500-5000 units sold according to the ipdb. 10 K sales from the late 70's on was blockbuster.

Mark Delfs
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This is another fantastic article--it felt as though I was there (We used our neighbor's 2600 because my parents wouldn't buy us one!) for the whole thing based on what you are reliving. Excellent, and please keep them coming!

Simon Carless
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We've fixed the misplaced comma on Superman pinball sales, thanks Jason.

shayne johnson
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Atari was not the first console to have Baseball

http://img409.imageshack.us/img409/7749/fairchildchannelfcartrihz0.jpg

Channel F's Videocart 12 was baseball, released in 1977.

Steve Fulton
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Shayne,

Good catch, but I believe it says that it was the first "single player" baseball game. I believe the Fairchild game (which I played many times at my friend's house BTW...but my favorite game was Alien Invasion) required two-players. I was trying to highlight the A.I. of the VCS game.

-Steve

Tomasz Primke
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Hello,

We'd like to translate a decent articles "The History of Atari: 1971-1977" (http://www.gamasutra.com/view/feature/2000/the_history_of_atari_19711977.php?pag
e=1) and "Atari: The Golden Years -- A History, 1978-1981" (http://www.gamasutra.com/view/feature/3766/atari_the_golden_years__a_.php) into Polish language and publish it on a popular portal jakilinux.org (and/or osnews.pl). Do you mind us doing so? Obviously proper attribution would be paid to you as the author.

Please let us know what you think about such re-publication. (My e-mail address is tprimke_at_gmail_dot_com.)

Best regards,

Tomek

dz jay
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Your information regarding the Intellivision is not accurate. The Intellivision was not powered by a 10-bit processor, but by an early 16-bit processor. It did, however, performed 10-bit memory addressing, but this was due to the fact that the ROM chips it used were 10-bit. This happens to be purely an accident of history: a 16-bit microprocessor designed in an 8-bit and 10-bit world.

Moreover, it is very unlikely that the Atari 3200 was to be based on the same chipset as the Intellivision. The Intellivision was mostly a knee-jerk reaction to the Atari 2600 from Mattel, and therefore consisted of an pre-built, off-the-shelf game system created by chip maker General Instruments. In fact, it was an actual sku item on their 1978 parts catalog. It was later customized a little, mainly to allow for more ROM and custom graphic tiles, but it was generally an off-the-shelf product.

Therefore it seems unlikely that Atari would plan to replace their aging custom-designed Atari 2600 with an off-the-shelf product, whose technology, although having some more capabilities, was just as old.

-dZ.

Steve Fulton
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DZ,

Thanks for that!
I'd say that from your description, the Intellivision processor could have still been one of the chips that Bushnell had tied-up in development, especially if GI was one of the companies he used. Remember, the idea that the Intellivision was based on one of those processors did not come from myself, but from a direct quote that Bushnell gave to me in an interview. Still, it's a very gray area and this why that part of the story is painted as "not definite".

-Steve

dz jay
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Mr. Fulton,
Thanks for your response. You are right, the GI microprocessor could still have been the planned successor to the Atari 2600. However, I still think it unlikely due its many limitations (weird architecture, 10-bit memory addressing, etc.).

My point was that the only reason Mattel used it was not because it was considerably better, but because they needed a quick release, and chose the General Instrument's pre-built system in haste in order to jump into the new Video Game market.

The entire Intellivision console was indeed superior, with better graphics resolution and 3-channel DSP'ed sound (although the graphics were tile-based instead of pixel-based, limiting its practicality; not to mention the ill-conceived Disc Controller!), but its microprocessor and chip technology were the products of early 1970s technology, hardly state-of-the-art; and unlikely the first choice for a successor.

But, of course, we can't ever know, and I do concede it's possible.

I do agree that competition from Mattel could have been avoided if only Atari had adhered to Bushnell's strategy.

All in all, a very interesting and satisfying article; one that brought back wonderful memories. Please keep up with the thoughtful historical accounts of our wonderful technological roots.

Thank you,
-dZ.

P.S. Why, yes, I did (and currently) own a Mattel Intellivision, thank you.

dz jay
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P.P.S. My intention in the last comment was not to refute your assertions; I find your article very well written and accurate, and I enjoyed it immensely. I just wanted to enrich your historical account with further information from one of the little remembered competitors of the time.

Perhaps Gamasutra can showcase the Mattel Intellivision on a future article and fulfill my well of nostalgia, as it has already done with the Atari VCS, the Commodore 64, and Video Game arcades in general.

-dZ.

Mason Mccuskey
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Steve - great article, I especially like all the quotes. Thank you for going into detail, and including quotes from so many insiders.

Steve Fulton
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DZ,

No problem! Thanks for adding to the discussion. I agree, the Intellivision story needs to be told. I'd love to try to tackle it someday, especially since it all went down near my home town (they used to frequent the local arcade here while making games), Keith Robinson from the Blue Sky Rangers draws a cartoon for the local paper, and Intellivision Productions is in the same office building as my favorite Sunday breakfast coffee shop)...plus, I currently work for Mattel.

mason,

I'm happy you noticed. The quotes, to me, are the most important part.

Ryan Ponce
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Although my first system was the Coleco Telstar Arcade. (Google it) Which had a drag racing game. Shoot the moving man on the screen and Pong. On one triangle shaped cart.

It was Atari that really changed my life. Starting with COMBAT. My brother and I played that till the wee morning hours and although it was simplistic. I never had so much fun in my life. That would be followed by Space Invaders. Asteroids, Adventure, which was the first game that gave me the sense I could explore a world in a game. I liked the Sword Quest series as well.

Seeing a TV ad for Atari. Going to store and seeing the box art for each game. Buying a game and taking it home and opening it up. Taking the cart out and putting it into your Atari. That was pure bliss when I was growing up.

Atari is my childhood. I love Nintendo as well, but I'm not the Nintendo generation. I'm the Atari generation. Atari forever!

Thomas Djafari
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I can provide you more information about the Intellivision; I did a little bit of work with Keith Robinson and his office is pretty close to my place, so I can go talk to him again.
We re-developed 2-3 years ago Intellivision cartridges as Keith acquired the rights to unreleased games and wanted to release them for the retro crowd.
The carts are not simple ROMs, but use a time multiplexed bus for address and data, and the Intellivision hardware is definitely odd...
We've also re-developed a 2600 clone, for a product that hasn't been released (distributor problem), so I can answer a lot of questions about the 2600 hardware and some of its history if you want to do a followup.
you can contact me at: my first name that you can see on this post @ retrogamesllc.com

Steve Fulton
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>>Seeing a TV ad for Atari. Going to store and seeing the
>>box art for each game. Buying a game and taking it home
>>and opening it up. Taking the cart out and putting it into
>>your Atari. That was pure bliss when I was growing up.

Ryan,

That is exactly what I can't shake Atari from my mind. Somehow i want to recreate those moments, but it is very difficult these days.

-Steve

A D
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I have to know, is it possible to begin another era of amazing gaming with a similar gaming box? Are these "xbox" and ps/3 - whatever-s REALLY that good? I, too, cant shake Atari. The late 70s and early 80's were golden years for me with that stuff. I had a bedtime, back then, but in front of that Atari 800 I was developing games. Amazing.

Scott Stilphen
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Nice article, although one error I noticed is Lookahead was by Dave Johnson (not Bob Johnson).


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