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Engineering Research Associates (ERA), working for the US Navy, builds one of the first commercially produced computers, the ERA 1101. One of the key innovations in this computer was the method of storing information on a magnetic drum. The ERA 1101 could store up to one million bits with its magnetic drum. [Timeline]
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Designed by Grace Hopper, A-0 was the first computer program to use English to interact with the computer and give instructions.
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The use of magnetic 'donuts' on a grid of wires to store information was first used in MIT's Whirlwind. The orientation of each disk indicated either 'one' or 'zero', and the wires detected the orientation of each disk.
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MIT researchers developed the first method of direct input to a computer with an electronic typewriter. Before this, all computer interaction was done with punched tape or cards. The keyboard would prove to be an incredibly convenient and functional tool.
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Perhaps the first electronic game, Tennis for Two was created by William Higinbotham at the Brookhaven National Laboratory. Though it only existed for two years, its influence is felt in what is arguably the first most popular video game: Pong.