Here is a brief summary, to answer a bunch of questions I have received.
The game is a sequel to the original Missile Command. The original game was still on the production line when this version was being created. Atari wanted to strike quickly with a sequel to their 'smash hit'. The game was play tested and did fairly well. The main problem, was that it was designed to be played in a large cocktail style table (think Atari Football). Operators at the time, were against this format because of the space required. The game was also tested in an upright basketball cabinet, but needed a convoluted mirror assembly to allow to players to play side-by-side. Since they could not come up with a suitable cabinet configuration, the project was cancelled.
There are tons of documents at
www.atarigames.com that document the development process and focus testing of this game.