Sunnyvale, California — 1979 — Forever

ACTIVISION

The Rebel Programmers

They put their names on the box before anyone allowed it. Four programmers who walked out of Atari, founded the world’s first independent third-party game company, and changed everything.

1979Founded
60%of Atari’s revenue
4M+Pitfall! copies
43Reward patches
Pitfall! cartridge River Raid cartridge Enduro cartridge Chopper Command cartridge Keystone Kapers cartridge Pitfall II cartridge Barnstorming cartridge Spider Fighter cartridge

Artists Who Signed Their Work

In 1979, four Atari programmers - David Crane, Alan Miller, Bob Whitehead, and Larry Kaplan - discovered they had collectively generated 60% of Atari’s cartridge revenue while earning flat salaries with no credit and no royalties. They walked out and built something new.

The First of Their Kind

Activision, incorporated on October 1, 1979, was the world’s first independent third-party console video game developer and publisher. Before Activision, the hardware maker controlled everything. After Activision, the entire games industry was possible.

CEO Jim Levy - recruited from the music industry - brought a radical idea: treat game designers the way record labels treat musicians. Give them screen credit. Give them royalties. Put their faces in the instruction manuals.

When Atari sued them for $20 million, alleging trade secret theft and patent infringement, Activision fought back. The 1981 settlement didn’t just save the company - it legally established that third-party software development was possible. Within months, dozens of companies entered the 2600 market. The entire modern games industry traces its legal legitimacy to that ruling.

Activision logo
The distinctive Activision logo, designed by CEO Jim Levy, appeared in a standardised 32-pixel space at the bottom of every Activision game screen.
Atari 2600 Woody four-switch model with joystick Atari 2600 Light Sixer model Atari 2600 Vader all-black model (1982)

The three major Atari 2600 variants - the Woody, the Light Sixer, and the Vader - all supported the same cartridges that made Activision famous.

Watch

The story of Activision, in the words of the people who built it.

HistoricNerd: History of Activision

History of Activision

HistoricNerd’s documentary covering the founding story, the Atari lawsuit, and the golden age of 2600 cartridges.

How Four Disgruntled Developers Made Activision

How Four Disgruntled Developers Made Activision

The founding story in full - the Atari revolt, Jim Levy, the lawsuit, and how a small team changed the entire industry.