Back in 1931 architect Alfred Butts invented a game called Lexiko. It was based on an older game named Anagrams and was modified to use English language letter frequencies in the letter pool. While a sound idea to make the game more realistic and more fun, Lexiko was never a commercial success.
In 1938 Butts made significant revisions to his word game by adding a game board. He used the same 100 letter tiles, but instead of simply creating words out of a random set of letters, the words had to be played on the board in a crossword style layout (left to right and top to bottom). The letters each had a numerical value, roughly proportional to the frequency with which the letter appears in the English language. The 15 by 15 square board also had spaces which would magnify the value of the tile placed on them or magnify the value of the entire word. This new game was called Criss-Crosswords. Like its predecessor, Lexiko, Criss-Crosswords did not find its market and game manufacturers showed no interest in buying the game.
In 1948 James Brunot purchased the rights to Criss-Crosswords from Butts. He renamed the game Scrabble and mass produced it, but public interest in the game remained elusive. Then, in 1952, Jack Straus, president of Macy’s, played the game and immediately fell in love with it. He placed a large order for Macy’s to carry, forcing Brunot to license the game to Selchow and Righter, a game manufacturer, to produce the required quantities of the game.
With Macy’s backing it, Scrabble became an overnight sensation and in the first two years four million sets of the game were sold. In 1972 Selchow and Righter bought all rights to Scrabble. By now the game was a household name and also sold internationally. In 1986 Caleco Industries purchased Selchow and Righter and in 1989 Hasbro purchased the primary assets of Caleco.

Scrabble Tournament by Unjoanqualsevol/Wikimedia Commons
Today Scrabble remains one of the most popular games of all time. There are national and international Scrabble tournaments with winners being awarded prizes as much as $25,000. The game was made into long running television contest shows (Scrabble and Scrabble Showdown) and has been made into countless computer and internet game versions. It is estimated that today one in three American households owns a copy of Scrabble.