With exclusive rights to sell a home version of the cult arcade hit Phoenix under its belt, Atari sues third-party software house Imagic over its space shooter game Demon Attack, which is somewhat similar to Phoenix – too similar for Atari’s tastes. The two companies settle out of court the following January, with Imagic agreeing to omit the “mothership” level from the version of Demon Attack sold for the Atari 2600; the mothership appears in nearly every other edition of the game for other consoles and computers.
