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Genesis: How the Home Video Games Industry Began
Author: Ralph H. Baer - used with friendly permission
Original Source
Where
do novel ideas come from?
Sometimes they come from left field, when you
least expect them.
In
1966, I was the manager of the Equipment Design Division at Sanders
Associates Inc., a Defense Industry company and at the time the largest
employer in the State of
New Hampshire
. At the time, my division had grown to nearly five hundred engineers,
technicians and support people and I was a busy man. While we were involved
in some display programs, none
of the work in my division, or in the rest of the Company for that matter,
involved development of broadcast television technology. As for me, ever
since my early days of television broadcast studio equipment and TV receiver
design work at Loral back in 1951, my TV-engineering training and experience
had occasionally surfaced to think about ways of using a TV set for
something other than watching standard broadcasts.
There
were about 40 million TV sets in the
US
homes alone in 1966, to say nothing of many more millions of TV sets in the
rest of the world. They were literally begging to be used for something
other than watching commercial television broadcasts!
In
1966, thoughts about playing games using an ordinary TV set began to
percolate in my mind. When I designed and built a TV set at Loral in 1955, I
had proposed doing just that: Build in a game to differentiate our TV set
from the competition. Management said No and that was that. During a
business trip to
New York City
on the last day of August in
1966, while waiting at a bus terminal for another Sanders engineer to come
into town for a meeting with a client, I jotted down some notes on the
subject of using ordinary home TV set to play games. I distinctly recall
sitting there on a sunny day and writing on a small spiral note book perched
on one knee...those notes have disappeared. Not so the pages of the
Disclosure Document that I wrote the following morning. They survived to
this day and are at the Smithsonian along with all of the game hardware we
built off and on over the next three years.
It was
a
Eureka
moment
When I
got back to my office in
New
Hampshire
on September 1, 1966, I transcribed those notes into a 4-page paper, a
Disclosure Document which dscribed the idea of playing television games on a
home TV set. It lists various types of games that might be playable using
the TV set as a display, such as Action Games, Board Games, Sports Games,
Chase Games and many others. What I had in mind at the time was to develop a
small “game box” that would do neat things and cost, perhaps, twenty-five
dollars at retail. (Note that the term "video games" did not appear until
the mid-seventies).
I asked
one of the engineers in my Division to read, date and sign the document -
standard procedure to establish a legal record. He did that. Some of the
phraseology of that 4-page paper reflects the fact that I was working in a
military electronics company. But it’s clear enough what it proposed: “Let’s
Play Television Games!”
Page 1
of the 4-page Disclosure Document
Original patent
"The present invention pertains to an apparatus [and method], in conjunction with monochrome and color television receivers, for the generation, display, manipulation, and use of symbols or geometric figures upon the screen of the television receivers for the purpose of [training simulation, for] playing games [and for engaging in other activities] by one or more participants. The invention comprises in one embodiment a control unit, an apparatus connecting the control unit to the television receiver and in some applications a television screen overlay mask utilized in conjunction with a standard television receiver. The control unit includes the control, circuitry, switches and other electronic circuitry for the generation, manipulation and control of video signals which are to be displayed on the television screen. The connecting apparatus selectively couples the video signals to the receiver antenna terminals thereby using existing electronic circuits within the receiver to process and display the signals generated by the control unit in a first state of the coupling apparatus and to receive broadcast television signals in a second state of the coupling apparatus. An overlay mask which may be removably attached to the television screen may determine the nature of the game to be played or the training simulated. Control units may be provided for each of the participants. Alternatively, games [training simulations and other activities] may be carried out in conjunction with background and other pictorial information originated in the television receiver by commercial TV, closed-circuit TV or a CATV station."
Little
did I know that I had started the ball rolling on something much bigger and
more significant than anyone could have imagined at the time: The start of what was to become a very large Home Video Game industry
within 10 years! I also could not possibly have visualized that the pages of
the Disclosure Document would surface again after 1974 in Federal Courts in
Chicago,
San Francisco
,
New York
, Ottowa and many other places in
pursuit of patent infringers. …and that a lot of money would change hands as
a result of the process started by the concepts described that paper, a
hundred million dollars, roughly.
Even
thinking about Video Games had absolutely nothing to do with the normal
business of developing complex military electronic systems in my Division at
Sanders Associates. But I was running a pretty large operation then, so I
could afford to put a technician on the bench and have him do some
experimental work without even
rippling my division’s overhead. So I just did it! It wasn’t long before the
project became official; a few convincing demonstrations to our Corporate
Director of R&D put the project on a legitimate track that would eventually
pay off handsomely.
TV game
development activity continued thorough 1968 and 1969. Most of the work was
done by Bill Harrison, then an Engineering Associate; and by Bill Rusch, an
engineer who both made important contributions to game concepts. I
supervised the activity, stopping by a few times during the day in the
special room where we were doing the actual hardware development work. That
room was tucked away in a remote place of
Sanders Canal Street
building in
Nashua
,
New Hampshire
, far from anyplace where the “real” work was going at Sanders
Associates; the farther, the better management liked it. It was a lot more than once over the next couple of years that
management asked me whether I was still “screwing around with this stuff”.
That attitude changed rapidly years later when money from patent licenses
and from successful litigation started pouring in.
Everything has to start somewhere:
First and second TV Game chassis
Several
progressively more complex game systems were developed during 1967 and in
1968. We could now play all manner of sports games: Ping-pong, volleyball,
handball, soccer, hockey and several others. We also had a light-gun with
which we could “shoot” at “targets” on the screen of the TV set.
By 1968
we had finished building our final demonstration game system, the “Brown
Box”. It was switch-programmable and played a large number of sports, maze
and quiz-type games.
In
addition, we had several games based on the light gun so we could shoot at stationary or moving “targets”. It
all worked very well and it was obvious to one and all that playing “TV
Games” was fun.
The "Brown Box" multi-game unit with its Target Shooting "rifle"

Screen Shots: Handball ... |

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…and PingPong |
As far
as neat games and producible technology was concerned, we were done! The
marketing effort was another story. It remained a major problem for two
years. We tried to introduce video games into the Cable TV industry in 1968
without lasting success.
Finally
we turned to
US
television
set manufacturers for possible interest in this brand new product category.
Throughout 1979 we demonstrated the Brown Box to representatives of various
TV set producers. At our invitation, representatives of RCA, Sylvania, GE,
Motorola, Magnavox came to Nashua; we demonstrated the Brown Box to all of
them and the reactions were overwhelmingly favorable...but did anyone move
off a dime? No such luck!
Magnavox finally took a license in 1971 and their 1972 Odyssey Home Video
Game, a production-engineered version of our Brown Box, was the result. It
started the Home TV Game market.
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The Magnavox Odyssey TV
Game System
According to the Agreement between us, Magnavox had the responsibility, as
our sole licensee, to handle all sublicensing activities for video games. It
took three more years of cajoling
and pressure from our Director of Patents and from me to effect a sea-change
of attitude at Magnavox. |

12 Games that came with Odyssey
|
They finally committed
to dropping notices of infringement on a group of arcade game manufacturers.
Sanders and Magnavox went after the first set of infringers, the lawsuits
began and would go on for the better part of fifteen years.
In the
beginning, it was Atari which
was joined with Chicago Dynamics and Bally-Midway in a suit laid on them by
Sanders/Magnavox. Court proceedings started in June of 1976 at the
Federal District Court
in Chicago, Judge
John Grady presiding. I had the dubious pleasure of being on the stand from
the second to the tenth of June, day after day, acting as a fact witness.
Spread out before me were all of the game hardware units we had built at
Sanders between 1966 and 1969. Also in the courtroom was a 5-foot stack of
documents: Mostly Harrison’s, Rusch’s and my daily logs and assorted
technical loose notes. Our Brown Box, the 1968 game unit, was there, hooked
up to a TV set and used to demonstrate technical particulars to Judge Grady.
That
lawsuit and others that followed it were largely about the interaction
between manually-controlled and machine-controlled symbols on screen, like
the paddles and the ball in a ping-pong game. Atari’s PONG game – which in
any event came about because Atari’s President, Nolan Bushnell, had played
an Odyssey ping-pong game at a Magnavox dealership demo in May of 1972 - infringed that technology and so did all of Atari’s competitors who copied the Pong game within months of it first appearance.
Judge
Grady was very interested in the subject. He was very sharp and amazed all
of us with the amount technical detail he absorbed and digested during the
trial. He was friendly and
often turned to me from the bench while I was on the witness stand, asking
for explanations of some technical detail that had escaped him. I was
impressed.
One day
the opposition brought an arcade PONG-type game into the courtroom. When the judge asked that the back be removed so that he could see
what’s inside, there was a modified Admiral TV set. Its r.f. front-end (the
tuner and video IF amplifiers) had been bypassed to make it effectively into
a TV monitor. I had described the use of monitors in my ‘480 patent. Judge
Grady took one look at what he saw inside the arcade game and what he saw on
the screen and drew the proper conclusions: Namely, that this arcade game
had all the elements described in our patents - which had long since issued,
having been filed many years
earlier.
After
weeks of intensive proceedings in Judge Grady’s
Chicago
courtroom, the trial ended with his decision in favor of Sanders/Magnavox on
all counts. The judge read this decision from the bench on January 10th of
1977. If we had written the
decision ourselves, it could not have been more supportive of our position.
We had won a clear-cut victory. Naturally, I was pleased to hear Judge Grady
state unequivocally that my ‘480 patent was the “pioneer patent” of the
nascent video game industry. The public, printed record of the decision in
201 USPQ, page 26 also contains that statement. US Patent 3,728,480 entitled
“Television Gaming and Training Apparatus” is the pioneering patent of the
video game art.
Atari,
the pioneer arcade video game manufacturer of the period was joined in that
first lawsuit with Seeburg and some others. Once the trial began, Nolan
Bushnell, Atari’s president, was having second thoughts and settled with us
out-of-court.... our first licensee! Atari got a relatively low-cost paid-up
license which acovered past infringement for US-sold products, but not
foreign rights. Those were negotiated five years later. That initial
Agreement was dated June 6, 1976. It was the first of two Agreements with
Atari. The second one was signed in 1981. By then, Atari dominated the video
game world.
That
Chicago
lawsuit was just the first one in a
series of legal actions against infringers of our patents. We later
litigated against Mattel, Activision, Nintendo and Sega and won all of those
lawsuits over the period of the next ten-plus years. They ran longer than
any Broadway play ever did. Much money changed hands as a result and went
into the coffers of Sanders (now a Lockheed company) and Magnavox’; of
course the lawyers colleted their share.
The
Magnavox Odyssey TV Game system jump-started the industry which we now know
as the video game industry and did so in fair style. Close to 100,000
Odyssey games were sold in 1972. By the time newer models made their
appearance in 1974, Odyssey had racked total sales of about 350,000. This
happened despite the fact that the Odyssey system was a mid-1960's design
using discrete components, like those of the TV sets of that era. By the
mid-nineteen-seventies, integrated circuits and single-chip game designs
were coming into use, reducing the cost and increasing the performance of
games so that the industry took off like a big bird. By some calculations,
its gross receipts now exceed that of the movie industry.
Not too
shabby for an idea that took off from a few notes scribbled in
New York
in August of 1966.
Finally: For anyone really interested in the details of this story, please
get a copy of my book “Videogames: In the Beginning” . See my Home page for details.
Credits and sources
Some images and information came from the following sources, in no particular order:
www.ralphbaer.com/how_video_games.htm
Any informations, inputs, contributions, descriptions or anything
related to Pong will be greatly appreciated! If you have extra info about this page, if you noticed errors,
please help us to maintain this site. Send us the information you have,
thank you in advance. Please contact us.
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