Don Atari Quotes

Booya!" I shouted in pure triumph, the adrenaline turning my manly baritone into a rather terrified-sounding shriek. "What have you got for fiery beams of death, huh? You got nothing for fiery beam of death! Might as well go back to Atari, bug-boy, 'cause you don't got game enough for me!

I’m turning fifty in five months. I mention to the healer how it feels a little late in my life to begin this kind of journey. As healers sometimes do, she tells me an interesting story about her parents… It seems her father was thinking of starting college at the ripe old age of 24. He was working, so he’d have to go at night. After figuring out the timing, he told his wife (her mom), “If I do this, I’ll be 29 years old before I graduate!” His wife replied, “How old will you be if you don’t do it?” He enrolled. Smart parents. Smart healer.

Jobs thus became one of the first fifty employees at Atari, working as a technician for $5 an hour. “In retrospect, it was weird to hire a dropout from Reed,” Alcorn recalled. “But I saw something in him. He was very intelligent, enthusiastic, excited about tech.” Alcorn assigned him to work with a straitlaced engineer named Don Lang. The next day Lang complained, “This guy’s a goddamn hippie with b.o. Why did you do this to me? And he’s impossible to deal with.” Jobs clung to the belief that his fruit-heavy vegetarian diet would prevent not just mucus but also body odor, even if he didn’t use deodorant or shower regularly. It was a flawed theory.

Was this luck, or was it more than that? Proving skill is difficult in venture investing because, as we have seen, it hinges on subjective judgment calls rather than objective or quantifiable metrics. If a distressed-debt hedge fund hires analysts and lawyers to scrutinize a bankrupt firm, it can learn precisely which bond is backed by which piece of collateral, and it can foresee how the bankruptcy judge is likely to rule; its profits are not lucky. Likewise, if an algorithmic hedge fund hires astrophysicists to look for patterns in markets, it may discover statistical signals that are reliably profitable. But when Perkins backed Tandem and Genentech, or when Valentine backed Atari, they could not muster the same certainty. They were investing in human founders with human combinations of brilliance and weakness. They were dealing with products and manufacturing processes that were untested and complex; they faced competitors whose behaviors could not be forecast; they were investing over long horizons. In consequence, quantifiable risks were multiplied by unquantifiable uncertainties; there were known unknowns and unknown unknowns; the bracing unpredictability of life could not be masked by neat financial models. Of course, in this environment, luck played its part. Kleiner Perkins lost money on six of the fourteen investments in its first fund. Its methods were not as fail-safe as Tandem’s computers. But Perkins and Valentine were not merely lucky. Just as Arthur Rock embraced methods and attitudes that put him ahead of ARD and the Small Business Investment Companies in the 1960s, so the leading figures of the 1970s had an edge over their competitors. Perkins and Valentine had been managers at leading Valley companies; they knew how to be hands-on; and their contributions to the success of their portfolio companies were obvious. It was Perkins who brought in the early consultants to eliminate the white-hot risks at Tandem, and Perkins who pressed Swanson to contract Genentech’s research out to existing laboratories. Similarly, it was Valentine who drove Atari to focus on Home Pong and to ally itself with Sears, and Valentine who arranged for Warner Communications to buy the company. Early risk elimination plus stage-by-stage financing worked wonders for all three companies. Skeptical observers have sometimes asked whether venture capitalists create innovation or whether they merely show up for it. In the case of Don Valentine and Tom Perkins, there was not much passive showing up. By force of character and intellect, they stamped their will on their portfolio companies.

Chris Cean: It's funny. Now everyone talks about Apple, but people don't remember how big and pervasive Atari was. At one point Atari was twenty-seven buildings in six cities. You could almost trace the outline of Silicon Valley by connecting the dots. We used to call Highway 101 "Via Atari" because you'd be driving to meetings up and down 101, and all around you there are cars with Atri parking stickers. It was that first magical wave of Silicon Valley.

Third, the idea that venture capitalists get into deals on the strength of their brands can be exaggerated. A deal seen by a partner at Sequoia will also be seen by rivals at other firms: in a fragmented cottage industry, there is no lack of competition. Often, winning the deal depends on skill as much as brand: it’s about understanding the business model well enough to impress the entrepreneur; it’s about judging what valuation might be reasonable. One careful tally concluded that new or emerging venture partnerships capture around half the gains in the top deals, and there are myriad examples of famous VCs having a chance to invest and then flubbing it.[6] Andreessen Horowitz passed on Uber. Its brand could not save it. Peter Thiel was an early investor in Stripe. He lacked the conviction to invest as much as Sequoia. As to the idea that branded venture partnerships have the “privilege” of participating in supposedly less risky late-stage investment rounds, this depends from deal to deal. A unicorn’s momentum usually translates into an extremely high price for its shares. In the cases of Uber and especially WeWork, some late-stage investors lost millions. Fourth, the anti-skill thesis underplays venture capitalists’ contributions to portfolio companies. Admittedly, these contributions can be difficult to pin down. Starting with Arthur Rock, who chaired the board of Intel for thirty-three years, most venture capitalists have avoided the limelight. They are the coaches, not the athletes. But this book has excavated multiple cases in which VC coaching made all the difference. Don Valentine rescued Atari and then Cisco from chaos. Peter Barris of NEA saw how UUNET could become the new GE Information Services. John Doerr persuaded the Googlers to work with Eric Schmidt. Ben Horowitz steered Nicira and Okta through their formative moments. To be sure, stories of venture capitalists guiding portfolio companies may exaggerate VCs’ importance: in at least some of these cases, the founders might have solved their own problems without advice from their investors. But quantitative research suggests that venture capitalists do make a positive impact: studies repeatedly find that startups backed by high-quality VCs are more likely to succeed than others.[7] A quirky contribution to this literature looks at what happens when airline routes make it easier for a venture capitalist to visit a startup. When the trip becomes simpler, the startup performs better.[8]

since the accident. I don’t know what her problem was. After all, I was a “hero.” At least the newspaper said so. “Hey, Alex,” she said, twirling her ponytail with her pencil. “Oh, hi,” I stammered, looking down at my burger. “You guys sounded really great in the talent show. I didn’t know you could sing like that.” “Uhh, thanks. It must be all the practice I get with my karaoke machine.” Oh God, did I just tell her I sing karaoke? Definitely not playing it cool, I thought to myself. TJ butted in, “Yeah, Small Fry was ok, but I really carried the show with my awesome guitar solo.” He smiled proudly. “Shut up, TJ,” I said, tossing a fry at him, which hit him between the eyes. “Hey, watch it, Baker. Just because you’re a ‘hero’ doesn’t mean I won’t pummel you.” “Yeah, right,” I said, smiling. Emily laughed. “Maybe we could come over during Christmas break and check out your karaoke machine. Right, Danielle?” Danielle rolled her eyes and sighed. “Yeah, whatever.” I gulped. “Uhhh…yeah…that sounds great.” “Ok, give me your hand,” she said. “My hand,” I asked, surprised. “Yep,” she said, grabbing my wrist and opening my palm. “Here’s my number,” she said, writing the numbers 585-2281 in gold glitter pen on my palm.” I will never wash my hand again, I thought to myself. “Text me over break, ok?” she said, smiling brightly. “Yeah, sure,” I nodded, as she walked away giggling with Danielle. “Merry Christmas to me!” I whispered to TJ and Simon. “Yeah, there’s just one problem, Dufus,” TJ said. “Oh yeah, what’s that, TJ? That she didn’t give you her number?” I asked. “No, Dork. How are you going to text her if you don’t have a cell phone?” He smiled. “Oh, right,” I said, slumping down in my seat. “That could be a problem.” “You could just call her on your home phone,” Simon suggested, wiping his nose with a napkin. “Yeah, sure,” TJ chuckled. “Hi Emily, this is Alex Baker calling from the year 1984.” He held his pencil to his ear like a phone.  “Would you like to come over to play Atari? Then maybe we can solve my Rubik’s Cube while we break dance ….and listen to New Kids on the Block.” He was cracking himself up and turning bright red. “Maybe I’ll type you a love letter on my typewriter. It’s so much cooler than texting.” “Shut up, TJ,” I said, smiling. “I’m starting to remember why I didn’t like you much at the beginning of the year.” “Lighten up, Baker. I’m just bustin’ your chops. Christmas is coming. Maybe Santa will feel sorry for your dorky butt and bring you a cell phone.” Chapter 2 ePhone Denied When I got home from school that day, it was the perfect time to launch my cell phone campaign. Mom was in full Christmas mode. The house smelled like gingerbread. She had put up the tree and there were boxes of ornaments and decorations on the floor. I stepped over a wreath and walked into the kitchen. She was baking sugar cookies and dancing around the kitchen to Jingle Bell Rock with my little brother Dylan. My mom twirled Dylan around and smiled. She was wearing the Grinch apron that we had given her last Christmas. Dylan was wearing a Santa hat, a fake beard, and of course- his Batman cape. Batman Claus. “Hey Honey. How was school?” she asked, giving Dylan one more spin. “It was pretty good. We won second place in the talent show.” I held up the candy cane shaped award that Ms. Riley had given us. “Great job! You and TJ deserved it. You practiced hard and it payed off.” “Yeah, I guess so,” I said, grabbing a snicker-doodle off the counter. “And now it’s Christmas break! I bet your excited.” She took a tray of cookies out of the oven and placed

But Silicon Valley was filling up newspapers with dozens of pages of employment ads. One Atari ad in 1974 read simply, “Have Fun, Make Money.” The day the ad ran, an unkempt eighteen-year-old who had grown up in nearby Cupertino showed up at the front desk of the game maker. He refused to leave without a job. The receptionist relayed the message to a senior engineer and asked whether she should call the cops. Instead the engineer, Al Alcorn, engaged with the “hippie-looking kid,” learning that he was a dropout from the literary Reed College with no formal engineering background but deep enthusiasm for technology. Despite the negatives, Alcorn hired Steve Jobs as a technician at $5 an hour. Atari’s unconventional hiring practices didn’t dissuade Sequoia Capital from making an investment. Neither did Atari’s manufacturing floor: “You go on the factory tour and the marijuana in the air would knock you to your knees—where they were manufacturing the product!” Sequoia’s Don Valentine would note later. Japanese quality control it wasn’t. Still, the venture capitalist took the big picture view to his board duties, suggesting that prudishness would have been futile: “What would I say, get a higher brand of marijuana?” This too was a fundamental shift, the counterculture of San Francisco and Berkeley permeating south. The

But Silicon Valley was filling up newspapers with dozens of pages of employment ads. One Atari ad in 1974 read simply, “Have Fun, Make Money.” The day the ad ran, an unkempt eighteen-year-old who had grown up in nearby Cupertino showed up at the front desk of the game maker. He refused to leave without a job. The receptionist relayed the message to a senior engineer and asked whether she should call the cops. Instead the engineer, Al Alcorn, engaged with the “hippie-looking kid,” learning that he was a dropout from the literary Reed College with no formal engineering background but deep enthusiasm for technology. Despite the negatives, Alcorn hired Steve Jobs as a technician at $5 an hour. Atari’s unconventional hiring practices didn’t dissuade Sequoia Capital from making an investment. Neither did Atari’s manufacturing floor: “You go on the factory tour and the marijuana in the air would knock you to your knees—where they were manufacturing the product!” Sequoia’s Don Valentine would note later. Japanese quality control it wasn’t. Still, the venture capitalist took the big picture view to his board duties, suggesting that prudishness would have been futile: “What would I say, get a higher brand of marijuana?” This too was a fundamental shift, the counterculture of San Francisco and Berkeley permeating south.

Al Alcorn: You know in Silicon Valley if you don’t obsolete yourself somebody else will, right? The Warner guys didn’t really understand that. They were from an East Coast company and thought that they had an evergreen kind of product. They thought that they would just sit back and mint money for the rest of their lives selling the Atari VCS for the next twenty years.

VR is not as new as it seems: It germinated inside Alan Kay’s research lab at Atari. The lab collapsed when Atari did, scattering Kay’s people across the Valley, but a young, dreadlocked, programming prodigy, Jaron Lanier, continued the research on his own dime. His original goal was to revive an old dream. Like Doug Engelbart and Alan Kay, Lanier wanted to create a computing environment that was immersive, flexible, and empowering. The difference was the interface. Engelbart invented the mouse. Alan Kay added the desktop metaphor. And in Lanier’s iteration, one donned goggles and gloves and stepped into virtual reality. Lanier actually coined the phrase. And the whole point of this new, all-enveloping interface was to be able to program the computer from the inside. There was just one problem: Once people got inside the computer, virtually no one wanted to code. There was a whole world in there, a cyberdelic Disneyland just waiting to be explored. Lanier thought he was building a next-generation programming language with the corresponding next-generation graphical user interface, but what people experienced was something a lot more fun. VR was The Well’s cyberspace made real. Taking advantage of the ensuing limelight, Lanier swiftly assumed a more Jobs-like role and marketed the heck out of his virtual reality machine, but in the end, the cost of an E ticket was just too high.