Impact and Legacy
See also: History of the video game industryThe Pong arcade games manufactured by Atari were a great success. The prototype was well received by Andy Capp's Tavern patrons; people came to the bar solely to play the game. Following its release, Pong consistently earned four times more revenue than other coin-operated machines. Bushnell estimated that the game earned US$35–40 per day, which he described as nothing he'd ever seen before in the coin-operated entertainment industry at the time. The game's earning power resulted in an increase in the number of orders Atari received. This provided Atari with a steady source of income; the company sold the machines at three times the cost of production. By 1973, the company had filled 2,500 orders, and, at the end of 1974, sold more than 8,000 units. The arcade cabinets have since become collector's items with the cocktail-table version being the rarest. Soon after the game's successful testing at Andy Capp's Tavern, other companies began visiting the bar to inspect it. Similar games appeared on the market three months later, produced by companies like Ramtek and Nutting Associates. Atari could do little against the competitors as they had not initially filed for patents on the solid state technology used in the game. When the company did file for patents, complications delayed the process. As a result, the market consisted primarily of "Pong clones"; author Steven Kent estimated that Atari had produced less than a third of the machines. Bushnell referred to the competitors as "Jackals" because he felt they had an unfair advantage. His solution to competing against them was to produce more innovative games and concepts.
Home Pong was an instant success following its limited 1975 release through Sears; around 150,000 units were sold that holiday season. The game became Sears' most successful product at the time, which earned Atari a Sears Quality Excellence Award. Similar to the arcade version, several companies released clones to capitalize on the home console's success, many of which continued to produce new consoles and video games. Magnavox re-released their Odyssey system with simplified hardware and new features, and would later release updated versions. Coleco entered the video game market with their Telstar console; it features three Pong variants and was also succeeded by newer models. Nintendo released the Color TV Game 6 in 1977, which plays six variations of electronic tennis. The next year, it was followed by an updated version, the Color TV Game 15, which features fifteen variations. The systems were Nintendo's entry into the home video game market and the first to produce themselves—they had previously licensed the Magnavox Odyssey. The dedicated Pong consoles and the numerous clones have since become varying levels of rare; Atari's Pong consoles are common, while APF Electronics' TV Fun consoles are moderately rare. Prices among collectors, however, vary with rarity; the Sears Tele-Games versions are often cheaper than those with the Atari brand.
Several publications consider Pong the game that launched the video game industry as a lucrative enterprise. Video game author David Ellis sees the game as the cornerstone of the video game industry's success, and called the arcade game "one of the most historically significant" titles. Kent attributes the "arcade phenomenon" to Pong and Atari's games that followed it, and considers the release of the home version the successful beginning of home video game consoles. Bill Loguidice and Matt Barton of Gamasutra referred to the game's release as the start of a new entertainment medium, and commented that its simple, intuitive gameplay made it a success. Many of the companies that produced their own versions of Pong eventually became well-known within the industry. Nintendo entered the video game market with clones of Home Pong. The revenue generated from them—each system sold over a million units—helped the company survive a difficult financial time, and spurred them to pursue video games further. After seeing the success of Pong, Konami decided to break into the arcade game market and released its first title, Maze. Its moderate success drove the company to develop more titles.
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