Stern is the name of two connected but separate companies that make arcade games. Stern Electronics, Inc. created arcade video games and pinball machines from 1977 to 1985. It is most famous for making the game Berzerk. Stern Pinball, Inc. was started in 1986 under the name Data East Pinball. This company makes pinball machines in North America.
Stern Electronics, Inc.
Stern Electronics was created in January 1977 when Sam and Gary Stern purchased the struggling company Chicago Coin. Sam had previously owned a company called Williams, buying half of it in 1947 and selling it to Seeburg Corporation in 1964. Gary had worked at Williams under his father and, from 1973 to 1976, the two men managed the company together. Stern Electronics, Inc. obtained its main inventory by buying Chicago Coin’s assets during bankruptcy sales. As a new company, they did not take over Chicago Coin’s debts. In September 1977, Stern Electronics acquired Universal Research Laboratories, which had gone bankrupt earlier that year. Universal Research made circuit boards for Bally pinball machines and later studied these designs to create their own versions. Bally sued Stern, and an agreement was made for Stern to pay royalties, totaling $700,000 by September 1981.
The first two games made by Stern were Stampede and Rawhide, originally created by Chicago Coin. Stern changed the logos and branding on these games. After a slow start, sales improved by the end of 1977. Stern produced their first solid-state pinball machine, called Pinball, in 1977. By 1978, they used fully solid-state electronics in all their games. In July 1980, Stern bought Seeburg Corporation’s jukebox production assets for $1.5 million. To improve sales in the declining jukebox market, Stern added screens and customizable displays to the machines. In October 1980, Stern also purchased August J. Johnson Co., a cabinet manufacturer based in Bensenville, Illinois.
When arcade video games became popular in 1980, Stern produced Berzerk, which sold 20,000 units. They stopped making pinball machines in 1982. However, Stern was one of many companies affected by the video game crash of 1983. They received financial help from distributor Al Simon and sold Seeburg the following summer. In 1984, Sam Stern died, and Stern Electronics closed on February 1, 1985. From 1985 to 1986, former employees of Stern started a company called Pinstar, which made conversion kits for older Bally and Stern machines. Gary Stern remained president of Pinstar. He later helped start Data East’s pinball division, which became part of Sega in 1994. While Data East operated from the old Stern Electronics building, it is unclear whether they acquired the company or only the building.
On March 16, 2023, Atari SA announced it had purchased the intellectual property rights to 12 Stern Electronics titles, including Berzerk and Frenzy.
Stern Pinball, Inc.
By 1999, the pinball industry was almost gone. Sega, which had bought Data East Pinball in late 1994 and renamed it Sega Pinball, sold its pinball division to Gary Stern. This led to the creation of Stern Pinball. Stern Pinball became the only company that made pinball machines for sale, but it faced challenges in the 2000s. During this time, the company produced about 10,000 machines each year, most of which were sold to countries outside the United States.
As of 2023, experienced designers Brian Eddy, John Borg, and George Gomez work at Stern Pinball to create new pinball games. They are joined by top player Keith Elwin and popular pinball streamer Jack Danger. Stern Pinball, Inc. is located in Elk Grove Village, Illinois.
Some Stern pinball tables are also available as digital versions through The Pinball Arcade and Stern Pinball Arcade.