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I recall reading that the design kicked off because of some stock of surplus CRTs but that didn't ultimately end up used.

https://www.gamedeveloper.com/design/a-history-of-gaming-pla...

> The system got its start in late 1980, when one of the hardware designers at Western Technologies (Smith Engineering), John Ross, had a light bulb go off -- or, to be more precise, a surplus one-inch Cathode Ray Tube (CRT).

> Western Technologies redesigned the system as a tabletop, and later that year General Consumer Electronics (GCE) licensed it for production -- though now with a nine-inch screen.

More of that history here https://www.vectrex.be/vectrex_jay_smith.html



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