Beginning in 1974 as an arcade machine repair business, Digital Games would begin making their own Pong-Clones in 1975. Without the backing of a distributor, the company's founders, Bill Prast and Steve Holder, would end up making their initial sales via first-hand direct selling. Despite being initially successful, mismanagement eventually caused the company to go bankrupt despite their relatively impressive game lineup. Another company would be created from the remnants of the employees who got laid off called Micronetics, but they too would close their doors by the end of 1976.