In 1971, Computer Space, created by Nolan Bushnell and Ted Dabney, was the first commercially sold video game. It used a black-and-white television for its display. Computer Space was followed in 1972, the first home console. Modeled after a late 1960s prototype console developed by Ralph H. Baer called the "Brown Box", it also used a standard television. These were followed by two versions of Atari's Pong.The commercial success of Pong led numerous other companies to develop Pong clones and their own systems, spawning the video game industry.

The home video game industry was revitalized shortly afterwards by the widespread success of the Nintendo Entertainment System, which marked a shift in the dominance of the video game industry from the United States to Japan during the third generation of consoles.

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