A few corrections
First, in 1977 Atari released the "VCS," or Video Computer System. It wasn't until some time in the 1980s that it was renamed the "Atari 2600."
Second, the article gives the impression that Jobs and Woz worked on the Pong arcade machine. Jobs may have assisted (he was in and out of Atari payroll at the time), but Woz was recruited by Jobs to work on the Breakout arcade game later on.
And third, one of the reasons Atari had an advantage over their competitors was due to a cheap license from Magnavox. By then, the full potential of the video game business was still not fully understood by anybody, and so Magnavox sold a license to Atari for what resulted in a very shortsighted price.
Later on, when the video game business went gangbusters, there was not a soul in the industry that could match Atari's cost of production, in part due to high license tributes from Magnavox and the arcade franchises.
And finally, lets not forget the huge influence that MOS Technology (and later, Commodore Business Machines) had on Atari. Bushnell was smart, and Atari was good, they could not have built their empire on on their own.