Atari releases its “edutainment” cartridge Math Gran Prix for the Atari VCS, a title designed to stave off critics of video games’ negative effects on kids’ schoolwork. Perhaps predictably, Math Gran Prix fails to cross the retail finish line – the same parents complaining that the Atari is keeping homework from getting done aren’t buying educational games for it. 
The video game wars officially enter a new generation of hardware as Connecticut-based toymaker Coleco unveils the Colecovision home video game system. Packaged with an almost-but-not-quite-arcade-accurate port of the hit game Donkey Kong, and pushed by an advertising campaign focusing on the message of “bringing the arcade experience home,” Colecovision’s best opening gambit may be an “Expansion Module” allowing the use of Atari VCS games on the console, making it possible for Atari owners to step up without having to rebuild their game libraries from scratch.
Activision releases the Pitfall! cartridge for the Atari VCS home video game system. Subtitled “The Adventure of Pitfall Harry” (implying that further adventures are yet to come), this becomes one of the Atari VCS’ “killer app” games, and is ported to other systems and updated for more modern platforms for decades to come.
Atari releases the arcade video game Gravitar.
Sierra releases the computer role playing game game Ultima II: Revenge Of The Enchantress for the Apple II home computer. Written by Richard “Lord British” Garriott, this is the second volume of the best-selling Ultima series of RPGs, and the first to introduce space travel and science fiction elements into the games’ sword-and-sorcery fantasy setting.
Coleco releases the LED matrix-driven tabletop version of Donkey Kong in a colorful case with arcade artwork. The game play and graphics are somewhat lacking, but the mini-arcade games tend to sell well since they don’t require connection to the family TV.
Data East’s food-obsessed arcade game Burgertime debuts in the United States, licensed locally by Midway. Challenging players – who may or may not be old salts at the fast-food business – to work their buns off trying to complete several burgers despite a revolt by the ingredients, Burgertime becomes a hit with seasoned gamers.
Coleco releases the Donkey Kong cartridge for the Intellivision home video game system, a home version of the hit arcade game.
With the words “Prepare to joust, buzzard bait!”, Williams Electronics launches an arcade sleeper hit built on unlikely juxtapositions (medieval knights, jousting with lances, riding on ostriches, over a lake of lava, stalked by pterodactyls). Joust becomes immensely popular for its simultaneous two-player mode, in which one’s buddy can be as much of a liability as any of the computer-controlled enemies. Whispers of movie deals based on the game are briefly heard before the video game industry’s fortunes change at the end of the year.
Taito America releases the arcade game Change Lanes, designed by Dave Needle, in American arcades. The game is an early mash-up of first-person racing and combat genres, putting players in the driver’s seat of a multi-terrain car that must ram through enemies and avoid missiles launched by aircraft to survive long enough to refuel.
After a long development process (during which it was briefly known as “Atari Video System X”), Atari introduces its own next-generation video game console, Atari 5200. Dubbed “The Supersystem,” the new console, boasting far better graphics and sound capabilities than the VCS, is hampered by one of the worst controller concepts in video game history. Also not helping the 5200’s chances are the lack of an adapter allowing VCS owners to painlessly transition to the new system, a peripheral already available for the Colecovision. (In keeping with the new system’s name, the VCS is also now marketed as the Atari 2600.)
Universal (a video game manufacturer unrelated to the Hollywood studio of the same name) introduces a cute arcade action game, Mr. Do!, casting players as a clown with a deadly weapon to use against underground monsters. Mr. Do! leads a revolution in the video game industry not with its game play, but with its form factor: it is sold as a conversion kit which can be plugged into a generic arcade cabinet, a concept which could potentially save arcade operators thousands of dollars by sparing them the expense of having to purchase an entire new machine to swap out games.
Activision releases the Megamania! cartridge for the Atari VCS home video game system. Inspired by the arcade game Astro Blaster, and subtitled “A Space Nightmare”, Megamania! pits players against airborne bow ties and hamburgers – and their own energy management skills. A national TV ad campaign featuring The Tubes heralds the game’s arrival.
Midway releases the arcade video game Super Pac-Man, licensed from Namco, the Japanese developers behind Pac-Man, of which this game is a direct sequel.
Sega releases the arcade game Pengo in American arcades. The game goes through several iterations and revisions related to the legality of music use.
The Odyssey² video game console gets its first major hardware upgrade in the form of the add-on voice synthesizer module, marketed as the Voice of Odyssey². With the Type & Tell cartridge packed in, the Voice promises to add speech to numerous specially marked Odyssey² games. The initial line of Voice games, also released on or around this date, includes K.C.’s Krazy Chase (a sequel to the sued-off-the-market K.C. Munchkin), and educational games Nimble Numbers NED and SID The Spellbinder.
Desperately trying to keep its coin-op games fresh, Sega releases the arcade game conversion kit Super Zaxxon. The kit updates Zaxxon machines with new graphics and levels, giving arcade operators the chance to put a “new” machine in circulation without purchasing an entire new cabinet.
Mattel Electronics releases the Tron Deadly Discs cartridge for the Intellivision home video game system, based on the movie Tron. A version of this game is also released by Mattel’s M Network imprint for the Atari 2600.
Mattel Electronics releases the Tron Maze-a-Tron cartridge for the Intellivision home video game system, based on elements of the movie Tron.
Pinball maker D. Gottlieb & Co., via its Mylstar video game division, graces arcades with the qute qreatures of Q*Bert. Though it rakes in quarters abundantly, Q*Bert’s easily recognizable characters briefly prove to be a licensing gold mine, resulting in toys, clothing, children’s books, and even a Saturday morning cartoon. The game is fast-tracked to numerous home video game systems.
The Learning Company tries on Rocky’s Boots, an innovative educational computer game designed to teach players the basics of circuit diagrams and basic logic by designing virtual machines to kick specific objects on screen. The game is designed by Warren Robinett, a former Atari programmer whose previous claim to fame is the hit game Adventure.
Konami introduces the arcade game Pooyan in the United States, turning the story of the three little pigs and the big bad wolf into a life-or-death video game struggle.
Now that video game “easter eggs” – secret messages hidden in the games by their designers – are public knowledge, Atari releases its first game in which finding these messages is an integral part of the game. Swordquest: Earthworld kicks off a four-game cycle whose hidden secrets, when found, will allow the first player sharp enough to find and decipher the clues to claim a prize. A downturn in Atari’s financial fortunes will keep the contest from being completed, and the fourth game is never actually released.
Imagic releases the Demon Attack cartridge for the Intellivision home video game system, drawing a lawsuit from Atari over its similarities to Phoenix, an arcade game which Atari has licensed for home console ports.
Imagic releases one of its first games for the Mattel Intellivision home video game console, Rick Levine’s Microsurgeon. With impressive graphics, the game puts players in the bloodstream of sick patient, where they must blast diseased cells with lasers to save the patient. Designed solely for Intellivision, Microsurgeon is a game that Imagic does not plan to port to the Atari 2600.
Imagic releases the Atlantis cartridge for the Intellivision home video game system.
Activision releases the Beauty & The Beast cartridge for the Intellivision home video game system, a direct competitor for Coleco’s arcade port Donkey Kong.
Telesys releases the video game cartridge Fast Food for the Atari 2600 home video game system, just in time for the Christmas buying season. A glut of new releases for the 2600 by the end of the year, many from third-party companies like Telesys, causes some consumer confusion which has unexpected consequences for the entire industry.
General Consumer Electronics (GCE) introduces a self-contained vector graphics video game unit, Vectrex. Using its own monitor instead of connecting to a television, Vectrex is an attractive proposition for parents, but the high price tag makes it a luxury item. Toy maker Milton Bradley eventually buys out GCE and takes over manufacture and marketing of Vectrex, and plans add-ons such as a light pen and 3-D glasses.
Atari releases the arcade video game Liberator, based on corporate sibling DC Comics’ Atari Force comics.