Quoted from StevenP:Yup. They just kept the assembly lines and design process rolling. I'd be curious to know how long it took for Data East (the real startup) to get their first games out the door, after they decided to set up shop. Although it's well-known that they were unafraid to "borrow" technology from other pinball companies. JJP is still improving things with the Hobbit and learning the ropes. And really pushing the envelope.
Data East wasn't as 'pure' a startup as all that, though. As I understand it, Old Stern bought Chicago Coin's assets at bankruptcy, and when Old Stern folded after the video crash in the 80s Gary Stern founded Pinstar to keep his hand in. Dates appear to be that DE Pinball was founded in '86 and released their first game, Laser War, in May '87.
I don't know how many physical and human assets came to DE from earlier pinball companies: conflicting reports exist, but most indicate that DE bought Old Stern's factory and assets at bankruptcy, which certainly gives them a leg up, along with Joe Kamikow and Gary Stern's preexisting knowledge base.