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thumb|[[Computer Space was released in 1971.]] 1971 is the first year of the commercial video game industry with the release of Computer Space by Nutting Associates and Galaxy Game by Mini-Computer Applications. The majority of digital games remained on mainframe computers and time-sharing networks, while an increasing number were demonstrated outside of traditional computing audiences. Several developments of games later commercialized – including Oregon Trail and the Magnavox Odyssey console – are first publicly tested in this period.

Events

  • March 11 – A preliminary agreement is signed between Magnavox and Sanders Associates to license the patents by Ralph Baer and William Rusch for the technology of the Brown Box home video game prototype. Magnavox would begin development on a product based on this technology, initially dubbed Skill-O-Vision.
  • Spring – Nolan Bushnell establishes contact with coin-op game manufacturer Nutting Associates. He joins the company as chief engineer with an agreement to separately license the game and technology developed by himself and Ted Dabney to be manufactured by the company.
  • July 26–30 – Magnavox initiates its first test market of its home video game system in Grand Rapids, Michigan at their authorized dealer Williams Magnavox Home Entertainment Center at the Eastbrook Mall.
  • August – The initial prototype of Computer Space is tested at a bar called the Dutch Goose in Menlo Park, California.
  • August 2–4 – The second U.S. Computer Chess Championship is held in Chicago. The winner of the previous competition, Chess 3.0, wins for a second year.
  • October – A second test market of the Magnavox home video game is held in Los Angeles at three stores under product manager Robert Fritsche.
  • October 15–17 – Computer Space is shown at the Music Operators of America show in Chicago, Illinois by Nutting Associates. Though the game attracts some notice, distributors do not place any orders for the game.

Financial performance

United States

Arcade

{| class="wikitable sortable" style="text-align:center"

! Title

! Arcade cabinet units (Lifetime)

! Manufacturer

! Developer

! Genre

|-

| Computer Space

| 1,300-1,500

200

| Nutting Associates

| Syzygy Engineering

| Multidirectional shooter

|-

| Galaxy Game

| 2

| Mini-Computer Applications

| Mini-Computer Applications

| Multidirectional shooter

|}

Notable releases

Games

Arcade

  • Late November – The first prototype of Galaxy Game is placed on location at the Stanford University Tressider Union by Bill Pitts and Hugh Tuck, operating under the name Minicomputer Applications. The initial version enables one on one player at one dime per play or three players for a quarter.
  • December 3 – The program OREGON is showcased to students of student teacher Don Rawitsch at Jordan Junior High in Minneapolis, Minnesota. It had been earlier tested by the students of Paul Dillenberger and Bill Heinemann at Bryant Junior High.
  • University of California Pomona student Don Daglow writes two games for the PDP-10 computer, one called Baseball and another called Star Trek. He would later become a prominent game designer and producer.
  • At Carleton College, students create several graphical games including one replicating pinball on a graphical terminal.

Business

  • January – The legal partnership between Nolan Bushnell and Ted Dabney is formalized as the Syzygy Company.