Founders Resign to Create Activision

The formation of Activision marked a pivotal moment in the video game industry, driven by the dissatisfaction of four Atari programmers: David Crane, Larry Kaplan, Alan Miller, and Bob Whitehead. Frustrated with Atari's restrictive policies, these individuals decided to resign and leverage their expertise in developing games for the Atari Video Computer System (VCS) to create their own company. This decision was not merely a career move; it represented a shift towards greater independence and creativity in game development. Activision aimed to produce and publish games that reflected the vision and innovation of its founders, rather than conforming to the limitations imposed by Atari. Atari's response to the emergence of Activision was aggressive, as the company sought to protect its interests through legal action. They sued Activision in an attempt to halt its operations, arguing that the new company was infringing on Atari's intellectual property. However, the dispute was resolved through an out-of-court settlement, which allowed Activision to continue its business while agreeing to pay Atari a portion of its game sales as a licensing fee. This settlement not only legitimized Activision's operations but also set a precedent for the burgeoning video game industry, highlighting the importance of intellectual property rights and the potential for independent game development.