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richardhutnik said:
archbrix said:

Bushnell had a clue... he's also the one who sold the company to Warner Comm. That speaks for itself.

My understanding is that he didn't leave immediately, but he did eventually leave.  He said this in an interview on why he left:

http://www.spiegel.de/international/interview-with-atari-founder-nolan-bushnell-no-acid-was-ever-used-at-atari-a-512798.html

SPIEGEL ONLINE: Why did you leave Atari, the company you had created, in the successful year of 1977?

Bushnell: Atari management under Warner was increasingly stifling. I had Chuck E. Cheese going at the same time and just decided I was an entrepreneur and not a corporate guy. Atari had changed from an engineering-driven company to a marketing-driven company. Innovation wilted and died -- and they failed.

Yes, that's correct. From what I understand he sold to Warner to get the capital to help launch the VCS (2600) and left - or was forced out by Warner - whichever you prefer to believe (probably mutual) in '78, the year after it launched (or maybe in '77 as your link says).

In any case, much like the Titanic didn't sink the instant it hit the iceberg, Atari enjoyed success for a few years and proceeded to treat programmers like crap, which is why people like David Crane left to form their own companies... Activision anyone?

They also flooded the market with the worst shovelware the industry has ever seen, which of course led to the home video game crash of '83.