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Bushnell graduated from the University of Utah electrical engineering program in 1968. During his time there in the 1960s, Bushnell was one of many computer science students that played the now famous Spacewar game on DEC mainframe computers. In 1971, Bushnell and colleague Ted Dabney created the Spacewar clone "Computer Space" in a self-contained cabinet; it was manufactured and distributed by Nutting Associates. Computer Space proved to be too far ahead of its time and was a commercial failure.

Nonetheless, Bushnell was determined to make a video game that could be played by anyone. In 1972, he and Dabney formed Atari and experienced an epiphany that spring at a computer electronics show in Burlingame, California, where he saw the Magnavox Odyssey for the first time and played its version of ping-pong. He realized that the game could use some improvements and a reduction in complexity. After Atari engineer Al Alcorn perfected the easier to play PongPong an adaptation of table tennis to the video screen, was the first widely popular arcade game. Actually, since it used a video screen, it was the first video game. Pong was first released by Atari in 1972, although other video games in this form had be videogame, Bushnell had it installed at a tavern in Sunnyvale, CaliforniaSunnyvale is a city located in Santa Clara County, California, USA. It is one of the major cities that make up the Silicon Valley. As of the 2000 census, the city had a total population of 131,760. Sunnyvale is headquarters to several high-tech companies called Andy Capp's (currently, it is "Rooster T. Feathers," a comedy club - but there is a mention on the wall of the establishment of the very first "Pong" being installed there). Pong proved to be popular but imitators helped keep Atari from dominating the fledgling coin-operated videogame market.

Bushnell later bought out Dabney. In 1974, Bushnell and Atari decided to develop a home version of Pong. By 1975, Pong became one of the hottest ChristmasChristmas (literally, the Mass of Christ) is a traditional holiday in the Christian calendar which takes place on the twenty-fifth day of December and celebrates the nativity of Jesus Christ. Christmas is also celebrated as a secular holiday throughout mu gifts, largely due to a distribution agreement with SearsSears, Roebuck and Company was founded in Chicago, Illinois as a catalog merchandizer in 1886 by Richard Sears and Alvah Roebuck. Their "stores" were more akin to pickup centers than actually places to shop, though it was possible in larger outlets to do. In 1977, the Atari 2600The Atari 2600 released in 1977, was the first successful video game console to use plug-in cartridges instead of having one or more games built in. It was originally known as the Atari VCS for V ideo C omputer S ystem and the name "Atari 2600" was first was introduced which helped to revolutionize home videogaming and the modern video game consoleA video game console is a dedicated electronic device designed to play video games. Often the output device is a separate television or a computer monitor. Once, video game consoles were easily distinguishable from personal computers: consoles used a stan industry was born. Demand for the unit was so great that Atari executives manned the production lines to help with the assembly and packaging during that first Christmas after its release. In 1976, Warner Communications (now Time WarnerTime Warner Inc. is the world's largest media company with major Internet, publishing, film, telecommunications and television divisions. The company is headquartered in New York City, New York, United States. History Time Warner was created through the m) bought Atari, and Bushnell was forced out of the company in 1978.

While still at Atari in 1977, he purchased Pizza Time Theaters back from Warner Communications (as Pizza Time was originally developed at Atari), a place where kids could go and eat pizzaFor the computer language, see Pizza programming language . For the Australian television show, see Pizza (Australian television . pepperoni, peppers, olives, and mushrooms. In its basic form, a pizza (occasionally, albeit redundantly, pizza pie is an ove and play video games. The Pizza Time / Chuck E. Cheese Theaters also had animatronic animals that played music as entertainment (Bushnell had always wanted to work for Walt Disney, but was continually turned down for employment when he was first starting out after graduation - Chuck E. Cheese was his homage to Disney and the technology developed there). In 1984, Bushnell resigned from Chuck E. Cheese Pizza Time Theaters (now named after its famous mouse mascot) as it entered bankruptcy. Chuck E. Cheese emerged from bankruptcy and it survives today as a successful entertainment and restaurant chain.

Bushnell has started over 20 companies (his most recent being uWink, which he founded in 1999). He has been inducted into the "Video Game Hall of Fame" and the Consumer Electronics Association "Hall of Fame."