Game Development Reference
In-Depth Information
at least two key reasons. A primary issue with the console was cost. Baer
had originally intended for the console to be sold for $ 19.95, but it ended up
selling for just under $ 200. Baer's reason for wanting the low price was that
people had not yet seen a product like this one and a more af ordable price
point would make people more willing to make a risky purchase. Mag-
navox bristled at the price and, combined with the decision to include all of
the trinkets as part of the game console, sought to increase the price to of -
set their higher cost of production. Further compounding the problems for
the sales of the Odyssey was that the console was only sold in Magnavox
stores. Relying on Magnavox employees to sell the product led to a recur-
rent theme of salespeople instructing potential customers that the Odyssey
would only work with a Magnavox television. The combination of a price
hike and limited, exclusive distribution meant that a console intended to
appeal to a broad audience failed miserably. At this point there was no suc-
cessful business model for video games and without an established industry
to drive sales, the Odyssey's failure in attempting to change the site of play
was ensured by its overwhelming cost and limited distribution.
Around the same time that the Odyssey was failing in Magnavox dealer-
ships, Atari's Pong was taking of in bars, bowling alleys, and other loca-
tions where the arcade game was installed. Although there were several
other ef orts to make commercially viable video games prior to Pong , it was
the fi rst widely successful arcade game, spawning a number of imitators
that modeled the concept of taking a well-known activity, like tennis, and
making it into a video game. 4 In establishing what would become the video
game industry, the arcade version of Pong led to the development of a new
line of consumer products, which Atari capitalized on with the debut of
the fi rst widely successful home console, Home Pong. Although Atari's fi rst
attempt to get video games into the home was in a similar price bracket to
the Odyssey, it benefi ted from two dynamics that enabled it to overcome
the lackluster reception of Magnavox's attempt to establish a home market
for video games. First, Atari benefi ted greatly from a change in the dis-
cursive environment for gaming. The Odyssey sought to create a market,
while Home Pong was able to build what was the fi rst home 'arcade port. ' 5
By capitalizing on a successful, sought-after arcade game, Atari was able
to leverage the popular interest in Pong to fuel sales of their home console.
Instead of needing to invent a market, Atari could capitalize on the discur-
sive space that was obtained with the popular success of the established
versions of the game. As the arcade game only cost a quarter to play, con-
sumers could learn to appreciate Pong for a far lower cost that the $ 199.95
needed to try out the Odyssey. In addition to having an established market
base for whom the console could be developed, Atari also sold Home Pong
through a much wiser channel.
Based on the failure of the Odyssey, toy and electronic retailers refused
to enter into a contract with Atari to sell the console. Home Pong was
expensive, and the only other product like it had failed miserably. After
 
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