Explore how four groundbreaking programmers transformed the game industry and created a legacy that endures today.
Atari’s Rise and Activision’s Birth
Back in the late ’70s and early ’80s, Atari was the king of the video game world. With iconic titles and innovative hardware, it dominated both bars and living rooms, crafting a cultural phenomenon. However, Atari didn’t reach such heights by itself. It had a secret weapon: Activision, the first third-party developer, which was crucial in producing some of the most beloved games for the Atari 2600. Many analysts credit Activision with significantly boosting Atari’s hardware sales and reinforcing its brand. But Atari saw it differently, perceiving Activision as an insidious foe that emerged from within its ranks.
The Game-Changing Memo
In 1979, Atari’s marketing team distributed a memo to its programming staff. This document detailed the previous year’s game sales, showcasing which titles generated the most profit. The intention was to motivate designers to create more hits, but the memo had an unexpected effect on some of Atari’s leading programmers.
David Crane, Larry Kaplan, Alan Miller, and Bob Whitehead were the stars of Atari’s programming team, responsible for many hits like Canyon Bomber and Surround. They quickly realized something astonishing: these four individuals alone accounted for a whopping 60% of Atari’s sales the previous year. “We were responsible for 60 percent of the sales. Then we found out that Atari had done $100 million in cartridge sales — that’s $60 million we produced!” Crane reminisced.
Despite this impressive contribution, each of them was earning only about $22,000 annually. The disparity was stark. They believed the video game industry should resemble the music or film sectors, where creative talent gets a fair slice of the pie based on success.
So, they approached Atari CEO Ray Kassar and argued for programmer royalties. Kassar, however, was adamant about keeping costs low. He told the programmers, “You’re no more important to those projects than the person on the assembly line who put them together.” This attitude left the group feeling disillusioned.
“He called us towel designers… You’re a dime a dozen,” Kaplan recalled in an interview.
Feeling undervalued, the four decided to leave Atari. But they weren’t finished with the Atari 2600 — they simply wanted to make games on their own terms.
Creating Activision
In the tech landscape of the ’70s, a company eager to enter the gaming scene needed to create a console and develop games for it. Major players like Atari produced cartridges for their systems, while others like Magnavox followed suit. Developing games for existing consoles wasn’t a typical route back then — you needed your own hardware.
David Crane made his first game, Dragster, a simple drag racing title, and he knew they had something special. “I was blown away; I knew there was something special about the games we were making,” he recounted, recalling a story about a sales rep’s son who played Dragster for 35 hours straight.
Soon after, Crane, Kaplan, Miller, and Whitehead took a leap of faith and established Activision, the first independent video game developer. They consulted with lawyers to ensure they weren’t breaking any laws, even budgeting for a possible lawsuit when they approached venture capitalists for funding.
The odds were against them; software companies struggled to gain backing since their products were intangible. However, they secured less than $1 million in funding, and within three years, Activision would see its valuation soar to over $300 million.
Activision’s founders envisioned a company that treated video games as art. They wanted every programmer to receive credit for their work, highlighted in instruction manuals, and packaged their games in vibrant boxes to stand out on shelves. They fully utilized the Atari 2600’s capabilities, often crafting games that visually outperformed Atari’s own releases.
Activision’s Struggles and Triumphs
By fall 1979, Crane’s garage had transformed into Activision’s headquarters, where they began working on their inaugural lineup of games, including Dragster and Fishing Derby. To promote their new products and build brand awareness, they showcased their games at the Consumer Electronic Show.
Crane reflected on their first CES experience, where visibility was a challenge but excitement was palpable. However, the buzzing success of Activision prompted Atari to strike back by publicly attacking the fledgling company. They ran ads condemning anyone who would “steal” trade secrets, a thinly veiled jab at Activision.
Atari’s continued pressure involved threats against retailers who dared to carry Activision games and accusations of intellectual property theft, particularly regarding the “venetian blinds” technique. This clever programming method, created by Whitehead, allowed for more sprites on screen.
Despite the mounting pressure, Crane and his team fought back with innovation. While under legal scrutiny, Crane demonstrated a digital window with venetian blinds to Atari’s lawyers, showcasing they hadn’t stolen any ideas.
“They were selling more consoles because of our support, but they couldn’t see it that way,” Crane stated, emphasizing how Activision had bolstered the Atari brand.
As Activision continued to release hits like Kaboom! and Pitfall!, Atari opted to settle their lawsuit in 1982. Activision could now legally develop third-party games, significantly altering the gaming landscape.
The Legacy of Activision
Fast forward to today, and Activision has evolved dramatically. The original founders left by the mid-’80s, and after facing financial difficulties, Bobby Kotick acquired the company, recognizing the immense value of its brand.
“What Bobby Kotick realized was that the Activision brand name was worth $50 million when he bought the company for less than $1 million,” noted Crane.
The vision of Crane, Kaplan, Miller, and Whitehead reshaped the gaming industry. They fought for recognition of game creators and established the precedent for programmers to share in the financial success of their creations, paving the way for a more artistic and profitable gaming world.
Conclusion
The four programmers behind Activision – David Crane, Larry Kaplan, Alan Miller, and Bob Whitehead didn’t just create a company; they forever changed the video game industry. Their legacy is a testament to their passion, vision, and belief that creativity should be celebrated and compensated. As we enjoy the games of today, it’s important to remember the pioneers who paved the way.
FAQs:
- What motivated the four Atari programmers to leave the company? They felt undervalued and believed they deserved a share of the profits from their successful games.
- How did Activision change the perception of video game developers? Activision established that programmers should be recognized as artists and receive credit for their work.
- What was Activision’s first game? Activision’s first game was Dragster, which was a success and showcased their innovative programming talents.
- How did Atari respond to Activision’s emergence? Atari attempted to undermine Activision through ads and threats to retailers, accusing them of stealing trade secrets.
- What is Activision’s legacy today? Activision set the foundation for the modern game industry, advocating for programmer rights and recognition, influencing how game developers are treated today.
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