Released January 1976 In 1973, after the success of the original PONG coin-op, an Atari engineer by the name of Harold Lee came up with the idea of a home PONG unit. Since the PONG coin-op that Alan Alcorn designed was nothing more than the game board connected to an actual television set, he thought it would be possible to scale it down a bit and modify it for use at home. This would be a new direction for the fledgling Atari consumer electronics. If they could pull it off, they would be one of the pioneers of using high tech custom integrated circuits in the consumer industry.
In 1975 it was decided Sears would sell PONG under it's own specially created Tele-Games label, and production was initially projected at 50,000 units. This was soon raised to 150,000 for the 1975 Christmass season. Atari agreed to give Sears exclusive rights for the following year, and would continue to make custom Tele-Games versions for any future consoles. This was the beginning of a long relationship between Atari and Sears, which would continue even after Nolan Bushnell sold Atari to Warner.