We showed [Gates] how the Macintosh mouse cursor moved smoothly, in a flicker-free fashion.
"What kind of hardware do you use to draw the cursor?", he asked. Many current personal computers had special hardware to draw small bitmaps called "sprites", and he thought we might be doing something similar.
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Relevant quote from https://www.folklore.org/Shut_Up.html:
We showed [Gates] how the Macintosh mouse cursor moved smoothly, in a flicker-free fashion.
"What kind of hardware do you use to draw the cursor?", he asked. Many current personal computers had special hardware to draw small bitmaps called "sprites", and he thought we might be doing something similar.