Unfortunately there are no capacitors on the chip and the external capacitors can't fulfill this role. So I suspect they are describing a different chip. The M

Unfortunately there are no capacitors on the chip and the external capacitors can't fulfill this role. So I suspect they are describing a different chip. The Magnavox Odyssey game, however, worked as you describe; the ball position was the voltage on two capacitors (X/Y), and they were charged or discharged to make the ball move. (This game system was analog, built from transistors.)