 That game was Computer Space , developed by Bushnell and Ted Dabney . They had found the Data General Nova , a US $ 4 @,@ 000 computer that they thought would be powerful enough to run four games of Spacewar at once ; the computer turned out to not actually be powerful enough for the project . While investigating the concept of replacing some of the computer with purpose @-@ built hardware , however , the pair discovered that making a system explicitly for running such a game , rather than general programs , would be much less expensive : as low as $ 100 . By 1971 when Bushnell met with Pitts and Tuck , a prototype version had been successfully displayed for a short time in August 1971 in a local bar , the design was nearly finished , and the pair had founded a company around it called Syzygy . Bushnell had also found a manufacturer for the game , Nutting Associates , who would make the final game cabinets and sell them to distributors . Bushnell felt that Galaxy Game was not a real competitor to Computer Space , due to its high price . Pitts and Tuck believed , however , that despite the economic argument their game was superior , as they felt that Galaxy Game was a true expansion of Spacewar , while Computer Space just a pale imitation . Some players at the time , however , believed Galaxy Game to actually be just a version of Spacewar ! . Galaxy Game 's prototype installation was very popular , though at a low price @-@ per @-@ game , and the pair developed a second version to display at the same location ; they were never able to enter production , though , as they eventually had to abandon the idea after spending US $ 65 @,@ 000 developing it due to the high cost and lack of business plan . 
