Bushnell has created over 20 companies since the original Atari and has been inducted into the Video Game Hall of Fame and the Consumer Electronics Association Hall of Fame.
Also joining Atari's board is Tom Virden, a "seasoned executive in the online leisure, technology and travel businesses who will bring Atari his strong knowledge of online business and e-commerce."
The shake-up has resulted in former CEO David Gardner and ex-president Phil Harrison leaving the company. The pair resigned the board roles they took on following Namcio Bandai's European takeover. Former SingStar director Paulina Bozek has also left her position as creative and product lead at Atari's London-based development studio, announcing via Twitter that she's now working on a "cool new project" elsewhere.
Bushnell said: “I am very excited to be reacquainted with Atari at a time when it is poised to make interesting strides in key growth areas of the games industry. The company and its iconic brands have always been important to me, and I look forward to further guiding them at the board level.”