Coleco (a contraction of COnneticut LEather COmpany) was the first company to introduce a "dedicated chip" home video game system, with the Telstar Arcade in 1976. (The Magnavox Odyssey, based on Analog technology, was the first home video game system overall, debuting in 1973.) Trying to build upon the enormous initial success of the unit, Coleco decided to bring out nine different Telstar models. But within a year, 75 other manufacturers had introduced similar units, and combined with with production snags, a shortage of chips, and a push towards hand held games, Coleco skirted with disaster. While Coleco sold over $20 million of hand held games, it had to dump over a million Telstar units, and the company lost $22.3 million in 1978. With the introduction of units with games stored on interchangeable cartridges, Fairchild and then Atari had eliminated any remaining market for the simple pong  games.