Video Games 1971: At the beginning of the 1970s, video games existed almost entirely as novelties passed around by programmers and technicians with access to computers. Primarily at research institutions and large companies. But it was all going to change. The history of video games transitioned into a new era early in the coming decade. Most of all, thanks to the rise of commercial video game industry. In 1971, Bill Pitts and Hugh Tuck developed a coin-operated computer game, Galaxy Game, at Stanford University using a DEC PDP-11 computer with vector displays. However, only a prototype was built and it was never entirely released. Source: Early days of video games.
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Commercial Video Games
The first commercially available arcade video game however, was Computer Space. A space combat arcade game developed by Nolan Bushnell and Ted Dabney in partnership as Syzygy Engineering.
Computer Space was too difficult to play?
Approximately 1,500 Computer Space machines were produced. The components are packaged with a 13-inch black-and-white TV set in a futuristic-looking cabinet. Unfortunately, public finds it too difficult to play and it was never going to be a success. Source