The home video game industry.

Essay by crusherUniversity, Bachelor's June 2003

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The home video game market is a 30 billion dollar booming industry. Technology and

entertainment have been combined together to create a world wide phenomena. The year 2001 marked the thirtieth year anniversary of the home video game. Where did it all begin.

History, Development, and Growth of the Industry

The year of 1972 was a period of innovation for Norman Bushnell. Bushnell vision was to create a video game. Past experience required that the game had to be as simple as possible. Pong was the product that resulted based on the concept table tennis. The game was placed in a bar and soon generated revenue. Norman Bushnell received a line of credit from a local bank and founded his company Atari. The employee's would soon go on to be innovators in their own right, Steve Jobs and Steve Woziak.. Capital was provided by Don Valentine, a successful venture capitalist.

The company's first year sales were 3.2 million dollars. Competition began to enter the market and Sears soon came to the rescue. Sears provided a much needed push and sales were reached of 450 million dollars. Atari was sold to Warner Brothers for 28 million dollars and became Atari Inc.

Success followed with the Atari 2600 in 1977. The company floundered and in 1984, Warner Brothers sold the rights to Jack Tramiel.

The home video game industry fell into a decline but was soon to be revitalized. The industry rescuer was no other than Nintendo. Nintendo was in 1984 a company that had made its mark developing playing cards. The Kyoto based company was led under Hiroshi Yamauchi. Yamauchi believed that the market could be brought back to life. Engineers and Nintendo's talented employee, Sigeru Miyamoto developed an 8-bit system that became the (NES), Nintendo Entertainment System in...