- (month unknown)
- Quote of Harold Vogel, financial analyst at Merrill Lynch, Pierce, Fenner & Smith, about the home video game market: "The unrestrained growth will come to an end. There will be casualties as the business levels off, which should be fairly soon.". [89.136]
- February 1
- Coleco signs a contract with Nintendo for exclusive rights to home and table-top conversions of Donkey Kong. nintendo grants Coleco a six-month exclusive license for undisclosed cash plus royalty of $1 per tabletop machine and $1.40 per cartridge. [1343.187] [1460.209]
- February 6
- The Ormond Beach Commission in Florida approves an ordinance prohibiting electronic games from being placed within 1000 feet of a school, church, or youth activity center in Ormond Beach. [107.59]
- February 8
- Walter Day releases the first Twin Galaxies National Scoreboard to the public, recording video game high scores. [866.140] [1447.6]
- Council of Bradley, Illinois, bars children under 16 from playing video arcade games. [292.7]
- February 9
- The Boston suburb of Marlborough, Massachusettes, passes an ordinance barring the use of video games by anyone under age 18 during school class hours or late at night, and bans placement of the games within 1500 feet of public schools. [108.14] (February 8 [292.7])
- February
- Parker Bros. enters the video game cartridge market. [288.32]
- February 19
- Mattel Electronics introduces several of its Intellivision video games modified to play on the Atari VCS game system. [110.30]
- February 23
- The US Supreme Court announces it will not decide on the Mesquite versus Alladin's Castle case. The Federal Appeals Court must determine if the circumstances of the case are specific to the Texas constitution, in which case the US Supreme Court would have no jurisdiction. [89.128] [111.A15]
- March
- Imagic releases the Demon Attack video game cartridge. [120.D4] [121.D4] [283.55]
- Atari releases the Pac-Man video game cartridge for the Atari VCS system. Price is US$37. [109.D14] [113.D4] [279.48]
- Stern releases the Frenzy arcade video game. [89.188]
- March 18
- Federal District Judge George Leighton in Chicago orders Magnavox Home Entertainment Center to take its K.C. Munchkin video game off the market because of similarity to Atari's Pac-Man. [112.D5]
- January-March
- Unit sales of video game cartridges over the past three months: 14.3 million. [137.D1]
- (month unknown)
- U.S. Games releases the Space Jockey video game cartridge for the Atari VCS system. [116.D3]
- April
- Atari receives a patent for improved methods of generating moving objects on a video display screen. [114.39]
- April 20
- Gabriel Industries, a division of CBS/Columbia, announces a four-year agreement with Bally Manufacturing to market home video game versions of Bally arcade games. [115.D5]
- April 22
- The Quaker Oats Company announces it has acquired the home video game assets of U.S. Games Corporation. [116.D3]
- April 27
- Sid Sheinberg, president of MCA and Universal, meets Arnold Greenberg, president and CEO of Coleco Industries, in Hollywood. Sheinberg says Donkey Kong violates copyright on movie title King Kong. [124.117] [1460.211]
- April 28
- Universal tells Nintendo of America and Coleco Industries to destroy all copies of Donkey Kong due to infringement of King Kong film. [1460.212]
- April 30
- New York Superior Court judge Milton Feller declares unconstitutional a community ordinance in Garwood, New Jersey, that required video game players to be at least 18 years old. [117.30]
- May 3
- Walt Disney Productions files a suit against Williams Electronics for infringing Disney's Tron trademark, by the arcade video game Robotron. [118.D5]
- May 6
- Minoru Arakawa and Howard Lincoln of Nintendo of America meet with Coleco Industries and Universal Studios over the Donkey Kong and King Kong infringement issue. [1460.212]
- May 12
- Arnold Greenberg of Coleco signs agreement with Universal to pay royalties on sales of Donkey Kong. [1460.212]
- May
- Quote by George Ditomassi, senior Vice President of Milton Bradley: "You've got a bloodbath coming in cartridges.". [287.114]
- Quote by Raymond Kasar, chairman of Atari: "It's a ridiculous notion that [the video game market] is going to burn out.". [287.114]
- May 21
- Minoru Awkawa and Howard Lincoln of Nintendo of America meet with Sid Sheinberg at Universal Studios, telling them of refusal to pay royalties for Donkey Kong. [1460.214]
- (month unknown)
- Milton Bradley introduces the Pac-Man board game based on the video game. [109.D14] [786.76]
- June
- At the Summer Consumer Electronics Show, Magnavox shows the Odyssey2 video game machine. [58.D1]
- June 6
- At the Summer CES, 20th Century-Fox Film announces its entry into the video game industry, by forming a new division to create software for the Atari VCS game system. [57.D5] [152.D6]
- June 15
- New York state Supreme Court justice Thomas Galligan rules that New York City could limit locations of video game arcades, saying that the games are not protected by the First Amendment of the US Constitution. [129.B3]
- June
- Commodore International releases the Commodore Max Machine game system. It has 16-color 40x25 screen capability. Price is US$179.95. Former name was Ultimax. It is sold only in Japan. [11.162] [35.237] [287.83]
- MCA files a lawsuit against Nintendo claiming copyright infringement of Donkey Kong against the film King Kong. [124.122]
- Atari announces a deal with Star Wars film producer Lucasfilm to market games designed by Lucasfilm. [289.60]
- June 17
- Atari grants Centuri exclusive worldwide rights to manufacture and distribute the Tunnel Hunt arcade game. [130.D4]
- June 29
- Universal Studios files lawsuit against Nintendo of America claiming Donkey Kong violates copyright to King Kong. [1460.215]
- Universal Studios announces licensing agreement with Coleco Industries for Donkey Kong. [1460.215]
- June 30
- Video game machines are in about 8 million US homes. [59.D4]
- June (month)
- Number one arcade game at end of June: Zaxxon by Sega Enterprises. [59.D4]
- April-June
- Unit sales of video game cartridges over the past three months: 19.2 million. [137.D1]
- (month unknown)
- Mattel Electronics ships several of its Intellivision video games modified to play on the Atari VCS game system. [110.30]
- Mattel Electronics introduces the Intellivision II video game system, in a light grey case, priced at $150. [12] (1983[1444.231])
- Nintendo releases the Computer Mah-Jong Yakoman handheld video game in Japan. It features play versus computer, or play against another player with a second unit via a link cable. Price is 16,800 yen. [1391.37]
- Astrovision renames the Bally Computer System as the Astrocade. [12]
- The Computer Software division of Walt Disney Productions produces the Tron video game for the Intellivision and Atari VCS systems. [75.100]
- Milton Bradley releases board games based on video games Donkey Kong and Zaxxon. [786.76]
- Nintendo releases the Mickey and Donald video game & Watch handheld game. [1391.17]
- Larry Kaplan and Jay Miner form the Hi-Toro company in Santa Clara, California, to create a new video games console. (The company with release three Atari 2600 games under the US trade name Amiga, then switch to building personal computers.) [1444.137]
- The Pac-Man cartoon TV show debuts in the USA. (It runs for two seasons.) [1391.174]
- Nintendo releases the first Multi-Screen Game & Watch handheld video game, Oil Panic, in Japan. [1444.188]
- Nintendo releases the Donkey Kong Jr New Widescreen Game & Watch handheld video game in Japan. [1444.190]
- July
- Sega Enterprises and Coleco ship the Donkey Kong video game cartridge. (Six million cartridges are sold, worth US$4.6 million.) [59.D4] [124.121]
- July 9
- Bally Manufacturing debuts the TRON arcade game. [59.D4]
- July
- Paramount airs television commercials promoting Sega Enterprises's Zaxxon arcade game. This is the first television commercial for an arcade game. [59.D4]
- July 21
- Atari signs a deal to make a video game based on the film E.T. the Extraterrestrial. [348.48]
- July 26
- Federal District judge George Leighton rules that Mattel Electronics had infringed patents of Magnavox on the Odyssey video game system. [61.D4]
- August
- Coleco Industries introduces the Colecovision home video game system. Included is the Donkey Kong cartridge. [47.F6] [80.D1] (July [1460.206,209])
- August 18
- Atari announces it has obtained exclusive worldwide rights to market video games based on the film E.T. the Extraterrestrial. [62.D6]
- (month unknown)
- Milton Bradley buys General Consumer Electronics. [17.10] [293.40]
- September
- Control Video company demonstrates the Gameline service, which can deliver video games over phone lines to a special modem cartridge in an Atari 2600 game system. [147.D5]
- July-September
- Unit sales of video game cartridges over the past three months: 24.1 million. [137.D1]
- (month unknown)
- Sega releases the Astron Belt laser-disc video game in Japan and Europe. This is the first game release to use full-motion video clips overlaid with computer graphics. [302.39] [960.22]
- October
- Caballero Control Corporation / Mystique releases three X-rated video games for the Atari VCS, including Custer's Revenge and Bachelor Party. Price is $49.95 each. (80,000 copies of Custer's Revenge are sold.)
- Atari introduces the Atari 5200 video game system. Price is US$269. [80.D4] [280.57] [287.114] [289.60]
- Atari releases E.T. the Extraterrestrial video game cartridge for the Atari 2600 game system. (4 million cartridges are produced, 2 million are sold, 1 million are returned. The game is considered one of the worst video games ever made. Millions of cartridges are later buried in a land-fill site.) [284.125] [348.48]
- October 31
- To date, Coleco Industries has sold over 2.2 million table-top video-game machines. [80.D1]
- (month unknown)
- Sales of Atari Pac-Man video game cartridges to date: 5 million. [120.D4]
- Entex Industries releases the AdventureVision game system, a US$75 standalone unit that can play US$15 cartridges. [286.44]
- November 1
- The Columbia Broadcasting System airs the Cagney and Lacey TV show in the USA. A short scene takes place in a video games arcade, showing Stern's Astro Invaders video game. [1326]
- November 7
- United Features Syndicate sues Creative Computing for copyright infringement, asking Creative Computing to stop selling the computer game Snoopy and destroy existing video cartridges. [81.D4]
- November 8
- General Consumer Electronics introduces the Vectrex, the first home gaming system with a built-in 9-inch monochrome vector monitor. It uses a Motorola 68A09 processor. Price: US$200. [12] [16.82] [26.92] [1340.15]
- November 9
- Mattel Electronics announces it would offer converter hardware allowing the Intellivision to play Atari 2600 cartridges. [80.D4]
- November 13
- Scott Safran of Pennsylvania scores a world record 41,336,440 in Asteroids. (The record continues to hold through at least February 2012.) [778.45] [1447.7]
- November 15
- Atari signs an agreement with Nintendo for the world-wide license of Donkey Kong and Donkey Kong Junior video games for Atari home computers. [119.D5]
- The Columbia Broadcasting System airs the Cagney and Lacey TV show in the USA. The Colecovision home videogame system appears; it appears to be playing Vanguard. [1327]
- November 23
- Eric Olofson scores a world record 500,774 on the Alpine Ski arcade game. (The record continues to hold through at least February 2012.) [1447.7]
- November
- Video game maker Games by Apollo of Richardson, Texas, files for Chapter 11 bankruptcy protection. [126.D5]
- November 24
- Todd Rogers scores a world record 653,990 on the Gorf arcade game. (The record continues to hold through at least February 2012.) [1447.7]
- November 29
- Atari files a copyright infringement suit against Imagic, claiming Demon Attack is a copy of Centuri's Phoenix video game, which Atari has the exclusive right to produce for the home game market. [121.D4] [285.76]
- (month unknown)
- Emerson introduces the Arcadia 2001 video game system. Price is US$99. [286.43] [1091.92]
- Milton Bradley announces a voice-command unit for video game systems. [293.40]
- Quote by an Atari executive: "I can put horse**** in a cartridge and sell a million of them.". [598.18]
- December 2
- Atari signs a long-term agreement with Destron, to market home video game versions of Destron's arcade games. [125.D5]
- December 6
- Mike Perez scores a world record 30,780 on the Moon Shuttle arcade game. (The record continues to hold through at least February 2012.) [1447.7]
- December 7
- Atari announces that sales of Video Computer Systems are not meeting predicted levels. [644.200]
- December 8
- Atari sues Coleco Industries for US$350 million, charging patent infringement, for Coleco's Expansion Module No. 1, which allows Atari 2600 cartridges to be played on the ColecoVision system. Coleco countersues for US$500 million claiming Atari violates antitrust laws. [127.D5] [285.76]
- Warner Communications announces that fourth quarter earnings would be substantially below expectations, due to sluggish sales in its Atari video games division. [47.F6] [48.D8] [123.D4] [288.31] [1447.92]
- December 9
- Mattel announces it expects a fourth-quarter loss due to increased competition in video games, and a general slump in the retail industry. [122.41] [123.D4]
- Warner Communications loses one-third of its market value in stock trading. [123.D4]
- December 10
- Imagic postpones its public stock offering from mid-December to early next year due to "unsettled market conditions". [122.41]
- Mattel loses one-third of its market value in heavy stock trading. [122.41]
- December
- In the New York District Court, judge Robert Sweet rules in favor of Nintendo over MCA Universal in the case of copyright infringement of the film King Kong by the video game Donkey Kong. Judge Sweet grants a summary dismissal, as MCA did not own the rights to King Kong, and even if they did, the game is considered completely different from the movie. (The case is appealed to the US Supreme Court, but the ruling stands. Nintendo is awarded US$1.8 million.) [124.124]
- December 16
- The ABC TV network airs the half-hour animated special Christmas Comes to Pac-Land. [678.S2.25] [679.C27]
- December 23
- Victor Ali scores a world record 80,364,995 on the Missile Command arcade game. (The record continues to hold through at least February 2012.) [1447.7]
- December 28
- Tom Bundy scores a world record 4,787,665 on the Kickman arcade game. (The record continues to hold through at least February 2012.) [1447.7]
- December 31
- Unit sales of home video game systems to date: 15 million. [54.D2]
- October-December
- Unit sales of video game cartridges over the past three months: 24.4 million. [137.D1]
- Year
- Arcade video game shipments for the year: 480,000. [53.D9] [145.C11]
- Arcade video game revenue (from coins) for the year: US$7.3 billion. [53.D1] [145.C11]
- Sales of arcade video game machines during the year: US$4.5 billion. [305.37]
- Unit sales of home video game systems during the year: 8 million, worth US$1.3 billion. [52.D1] [150.D4] [162.1] [300.104] [303.78] (US$900 million [18.9])
- Mattel Electronics profit: US$100 million. [1444.231]
- Coleco Industries earns US$44.9 million. [52.D1]
- Atari makes a net profit of US$300 million for the year, on US$1.7 billion in sales. [27.D5] [190.1-5]
- Unit sales of Colecovision game systems during the year: about 500,000. [147.D5] [300.31]
- Unit sales of Mattel Intellivision game systems during the year: 1 million. [1460.196]
- Unit sales of video game cartridges during the year: about 60 million, worth US$1.6 billion. [49.C17] [52.D1] [303.78] (65 million [150.D4]) (75 million [162.1]) (82 million [137.D1]) (worth US$1.1 billion [18.9])
- Sales of video game systems and cartridges in the US during the year: US$3.2 billion. [164.S3.6] [167.D23] [190.1-7] [312.39]
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