- June
- Atari introduces the Atari XE Game System, with 64 kB RAM, supporting 256 kB game cartridges. [14]
- June 30
- Sega releases the OutRun video game for the Sega Mark III system in Japan. [1343.36]
- (month unknown)
- Midway releases the Spy Hunter video game for the Nintendo Entertainment System. [397.59]
- Capcom releases the Street Fighter arcade video game in the US. [715.93]
- Capcom releases the Section Z video game for the Nintendo Entertainment System in the US. [715.93]
- Capcom releases the Trojan video game for the Nintendo Entertainment System in the US. [715.93]
- Sega Enterprises signs an agreement with Tonka for marketing and distribution of the Sega Master System game system. [190.1-11] (1988 [1460.xiv])
- Atari re-introduces the Atari 2600 video game system. [190.1-12]
- Mattel agrees to distribute the Nintendo Entertainment System in Italy and the United Kingdom. [124.413]
- Namco sells Atari Games to Time Warner and Atari Games employees. [124.242]
- Atari Games forms the Tengen company, to produce game cartridges for the Nintendo Entertainment System. [190.1-13]
- Tengen releases the Road Runner video game. [68.16]
- Midway releases the Spy Hunter II arcade video game. [480.90]
- Activision releases the Super Pitfall video game for the Nintendo Entertainment System. [545.49]
- Atari buys a handheld video game system code named "Handy" from developer Epyx. (Atari will release it in 1989 as the Lynx.) [685.133]
- The film Thrillkill is released to theaters in Canada. A scene takes place in a bar, with video games Vanguard, Galaga, Sinistar (you can hear "Beware, I live"), Air Attack, Jet Rocket, Phoenix, Space Race. Jet Rocket video game [1122]
- July 12
- Konami releases the Metal Gear video game for the MSX2 system in Japan. [1395.15]
- July
- Nintendo releases the Kid Icarus video game for the Nintendo Entertainment System in the US. [1413.51]
- Sega releases the After Burner video game in arcades in the US. [785.165]
- August
- Nintendo releases the Metroid video game for the Nintendo Entertainment System in the US. [304.132] [429.22] [1192.73] [1413.57] (1986 [359.134] [779.25]) (1989 [1159.93] [1161.78])
- Acclaim releases its first cartridge for the Nintendo Entertainment System, Star Voyager. [124.220]
- August 22
- Nintendo releases The Legend of Zelda video game for the Nintendo Entertainment System in the US. This is the first NES game with a battery-powered save feature. [304.146] [561.11] [1413.61] [1438.40] (July [429.22] [591.96] [1159.90]) (1986 [406.33])
- September
- Nintendo begins including the Super Mario Bros. video game cartridge with the Nintendo Entertainment System in the US. [429.21]
- October
- Nintendo releases the Punch-Out!! video game for the Nintendo Entertainment System in the USA. The game was previously released as Mike Tyson's Punch-Out!!, but the name changed when Nintendo's license to Mike Tyson's name expired. [304.144] [1135.116] [1413.56]
- October 30
- In Japan, NEC releases the PC Engine video game system. It features 64 kb VRAM, 7.16-MHz 8-bit HuC6280A CPU, 384x256 pixel graphics, 16-bit HuC6260 and HuC6270A graphics processors, 256 colors of 512 palette, 64 sprites, games on HUCards with up to 512 kb. (The system will be introduced in the USA in 1989 as the TurboGrafx-16.) [124.350] [168.D1] [1091.93] [1255.72] [1340.15] [1343.207]
- November
- Steven Harris and Jeffrey Peters start Electronic Game Player magazine in the US. (By mid-1988, Harris shuts down the magazine after four issues.) [329.60] [553.56]
- December
- Konami releases the Metal Gear video game for the Famicom in Japan. [1262.127]
- Square releases the Final Fantasy video game for the Famicom in Japan. (Total sales over its lifetime: 1.3 million.) [556.98]
- Capcom releases the Mega Man video game for the Nintendo Entertainment System in the US. [420.68] [715.93] [1158.66] [1159.91] [1413.54] (1988 [460.72])
- December 31
- Unit sales to date of Nintendo Entertainment System game systems: about 4 million. [189.35]
- Year
- Unit sales of Nintendo Entertainment System game systems during the year: 3 million. [124.169] [312.39]
- Unit sales of cartridges (by Nintendo and licencees) for the Nintendo Entertainment System in the US during the year: 15 million. [312.39]
- Market share of home video game systems in the US: Nintendo Entertainment System 70%. [164.S3.6]
- Sales of video game systems and cartridges in the US during the year: about US$1.1 billion. [167.D23] [173.C3] [312.39]
1988
- January 28
- Atari Games signs an agreement with Nintendo, to become a licensed producer of game cartridges for the Nintendo Entertainment System. [124.248]
- February 10
- In Japan, Enix releases the Dragon Quest III video game for the Famicom. (About 3.4 million copies are sold.) [124.69] [298.48]
- February
- Konami releases the Contra video game for the Nintendo Entertainment System. [304.140] [1159.95] [1413.52] [1423.72]
- Nintendo releases the R.C. Pro-Am Racing video game for the Nintendo Entertainment System in the USA. [1102.113] [1159.98]
- (month unknown)
- Arcadia Systems introduces the Leader Board golf game to arcades. The software was written by Access Software. [72.11]
- In Japan, Nintendo launches the Family Computer Communications Network System, releasing the Communications Adapter modem for US$100. The service can link game systems to central services and other games systems. [124.75]
- May
- Acclaim releases the Rambo video game for the Nintendo Entertainment System in the US. [514.28]
- Jaleco releases the City Connection video game for the Nintendo Entertainment System in the US. [514.28]
- June
- Tradewest releases the Double Dragon video game for the Nintendo Entertainment System in the USA. [1159.98]
- At the Consumer Electronics Show, Tengen announces games for the Nintendo Entertainment System: Pac-Man, RBI Baseball, and Gauntlet. [124.244]
- A world-wide shortage of microprocessors begins limiting production of video game cartridges. [190.1-14]
- Ultra Games releases the Metal Gear video game for the Nintendo Entertainment System in the US. [471.51] [666.58] [1159.99] [1262.127] [1413.66] (May [513.25])
- (month unknown)
- Sony and Nintendo negotiate an agreement giving Sony the licensing rights to video games on compact disks for a jointly developed game system. [124.379] [189.36]
- Konami releases the Blades of Steel video game for the Nintendo Entertainment System. [235.74]
- Nintendo releases the Ice Hockey video game for the Nintendo Entertainment System. [304.126]
- Sega releases the Phantasy Star video game for the Master System. Price is US$70. [304.126]
- Capcom releases the Gun Smoke video game for the Nintendo Entertainment System in the US. [715.93]
- Capcom releases the Legendary Wings video game for the Nintendo Entertainment System in the US. [715.93]
- Capcom releases the Mickey Mousecapades video game for the Nintendo Entertainment System in the US. [715.93]
- Capcom releases the 1943 video game for the Nintendo Entertainment System in the US. [715.93]
- The Software Creations company in England creates a ROM Developments group to work exclusively on NES games. [1133.46]
- July 10
- Bally Manufacturing agrees in principle to sell its coin-operated amusement game manufacturing business to Williams Industries for US$8 million. [163.D4]
- July
- Nintendo of America debuts the Nintendo Power magazine in the US. 3.6 million copies are given away. [453.38] [518.10] [718.36] [1413.58]
- August
- Sega releases the Power Drift video game in arcades in the US. [785.165]
- September
- The first Nintendo television show, The Super Mario Bros. Super Show airs in the US. (The show is aired daily Monday to Friday, for a total of 65 episodes.) [124.192] [1161.78] (1989 [1391.174])
- October
- Nintendo releases the Super Mario Bros. 2 video game for the Nintendo Entertainment System in the US. (Total sales: 7.46 million.) [304.144] [412.24] [1159.94] [1161.78] [1413.56] (September 1 [871.38])
- October 29
- Sega releases the Mega Drive in Japan. [1340.15]
- December 1
- Nintendo releases the Zelda II: The Adventure of Link video game for the Nintendo Entertainment System in the US. The game cartridge includes a battery for saving one's place in the game. [304.126] [561.11] [591.96] [1159.93] [1161.78] [1413.69] [1438.41] (1989 [406.33])
- December 12
- Atari Games files a lawsuit against Nintendo in US District Court in San Francisco, California, claiming Nintendo used monopolistic and exclusionary business practices by their security chips in the Nintendo Entertainment System and game cartridges. Atari Games claims US$100 million in damages, and says they have developed a compatible security chip so Atari Games and Tengen could compete with Nintendo in cartridge production. [31.364] [124.249] [165.D13] [190.1-14] [314.106] [1343.113]
- December
- Konami releases the Castlevania II: Simon's Quest video game for the Nintendo Entertainment System in the US. [1070.94] [1413.62]
- Square releases the Final Fantasy II video game for the Famicom in Japan. (Total sales over its lifetime: 760,000.) [556.98] [1340.28]
- Tengen introduces the first independently manufactured game cartridges compatible with the Nintendo Entertainment System. [124.266]
- In Japan, Henk Rogers releases the Tetris video game for the Nintendo Famicom game system. [124.312]
- The Software Publishers Association accuses Nintendo of engineering a shortage of Nintendo-compatible cartridges though its complete control and single sourcing of cartridge manufacturing. [124.245]
- December 31
- Unit sales to date of Nintendo Entertainment System game systems: about 11 million. [189.35] (7 million [1161.78])
- Year
- Unit sales of Nintendo Entertainment System during the year: 7 million. [124.169]
- Unit sales of game cartridges for the Nintendo Entertainment System during the year: 33 million. [124.172]
- Sales of Nintendo Entertainment System video game systems and cartridges in the US. during the year: US$1.7 billion. [167.D23]
- Sales of video game systems and cartridges in the US during the year: about US$2.3 billion. [167.D23] [173.C3]
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