Atari Sold to Warner CommunicationsIn 1975, Atari re-released Pong as a home video game and 150,000 units were sold. In 1976, Nolan Bushnell sold Atari to Warner Communications for $28 million. The sale was no doubt aided by the success of Pong. By 1980, sales of Atari home video systems had reached $415 million. That same year, the first Atari personal computer was introduced. Nolan Bushnell was still employed as president of the company.
Sold AgainDespite the introduction of the new Atari computer, Warner had a reversal of fortune with Atari with losses totaling $533 million in 1983. In 1984, Warner Communications unloaded Atari to Jack Tramiel, ex-CEO of Commodore. Jack Tramiel released the somewhat successful Atari St home computer and sales topped $25 million in 1986.
Nintendo LawsuitIn 1992, Atari lost an anti-trust lawsuit against Nintendo. That same year, Atari released the Jaguar video game system as competition to Nintendo. Jaguar was an impressive game system, however, it was twice as expensive as Nintendo.