Within two weeks the test unit breaks down because the coin drop is flooded with quarters. Pong is a success. Magnavox sells Odyssey exclusively through its own stores. People are led to believe the console will only work with Magnavox televisions. Still, Magnavox manages to sell 100,000 units.
Many people buy it because it is the closest thing they can get to a home version of Pong.
On behalf of Sanders, Magnavox sues Atari, claiming that Pong has been copied from one of the games on the Odyssey. After discovering a guest book from the Odyssey demonstration in Burlingame earlier in the year showing Nolan Bushnell's signature, Atari decides to settle out of court. For a few hundred thousand dollars, Atari buys the rights to manufacture video games. Any other company that wants to manufacture games must pay Magnavox and Sanders a licensing fee. As Pong becomes an arcade phenomenon, many other companies, including Nutting, create similar games.