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The Golden Age 1978-1981
1978
Bushnell Leaves Atari
Bushnell leaves Atari and signs a lucrative five-year agreement not to compete with the company he started. He buys the rights to Pizza Time Theatre from Atari and begins franchising it. Ray Kassar becomes the CEO of Atari.
Nintendo Releases Arcade Game
In March, Nintendo of Japan releases Computer Othello, a decidedly simplistic arcade cocktail-table game based on the board game Othello.
Trackball Rolls Into Arcades
Atari releases the arcade game Football. The game features a revolutionary new controller called the trackball.
Midway Imports Game to Beat
Midway imports Space Invaders from Taito. Space Invaders gives you a goal by displaying the current high score for you to beat.
Arcade Success Stories
Both Football and Space Invaders break all known sales records with almost equal earnings. However, Football's popularity fades with the end of the pro football season. Space Invaders' popularity continues, causing coin shortages in Japan and school truancy in America.
 |  The Atari 400. |
Atari begins selling its line of 400 and 800 computers to compete against Apple. The public, however, associates Atari with games, and the computers are never taken seriously.
|  Magnavox's Odyssey 2. |
Magnavox releases the Odyssey2, a programmable console that has a built-in membrane keyboard.
Vector Game Released
Cinematronics releases Space Wars, a game similar to Bushnell's Computer Space. The game features vector (line-drawn) graphics. Vector graphics are the earliest form of polygon graphics to appear in video game applications, and they lack the flat shading or textures of later graphics.
1979
|  The unreleased Atari Cosmos. |
Atari develops the Cosmos, a handheld programmable machine that features holograms within the graphics. Because the holograms are only for aesthetics and don't add to the gameplay, the Cosmos is never released.
Atari Vectors
Atari releases Lunar Lander, its first vector graphics game.
Lunar Lander Begets Asteroids
Despite Lunar Lander's popularity, Atari halts production of the game and begins releasing Asteroids in the Lunar Lander cabinets. Asteroids is a game that was originally designed by Lyle Rains and Ed Logg for the Cosmos system. It goes on to become Atari's all-time best-seller. Asteroids introduces a new feature to arcades: High scorers can enter their three-character initials at the end of the game. Nearly 80,000 units are sold in the United States, but the game is less popular in other countries. Sega releases Monaco GP, a driving game with a top-down perspective, which is followed by the similar Pro Monaco GP in 1980 and the realistic 3D racer Super Monaco GP in 1989.
|  The Microvision. |
Milton Bradley Electronics releases the Microvision, a handheld programmable unit that includes its own built-in LED screen.
1980
Space Invaders Come Home
Atari releases its exclusive home version of Space Invaders for the VCS. Sales of the VCS skyrocket.
|  An Intellivision brochure. |
Mattel Electronics introduces the Intellivision game console. The first serious competition for the VCS, the Intellivision has better graphics and a steeper price--$299. Mattel promises to release an optional peripheral that will upgrade the Intellivision console into a personal computer.
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