On June 27, 1972, Nolan Bushnell registered his company, Atari (after the Japanese "Go" game word for "check") and produced the first Pong arcade machine. The game was named for the sound it made when the moving ball hit a paddle. Like tennis or hockey, the goal was to get the ball past your opponent yet you could only move the paddle up and down. Home Pong emerged in 1974.
Fun Fact: Ralph Baer is said to be "the Thomas Edison of video games" because he headed a top secret program as early as 1966 called the "TV Game Project." This top secret program was created to teach military personnel strategy and better reflex skills and was funded by the Pentagon.