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Mattel built a game around a calculator processor and a row of red light-emitting diodes, producing what is generally recognized as the first fully electronic handheld game. It sold well enough to create a category.
Portable electronic play began here, and it began in the toy business rather than the computer or arcade industries. That origin mattered. Handhelds were priced, packaged and sold like toys for decades, which is why they reached children who would never be allowed near an arcade and households that owned no console.