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A S Douglas invented a machine that could play games and learn (AI). He made Tic Tac Toe with this machine program in which you went against the computer itself. This was a project on human interaction.
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Atari created what is known as Pong. It is a simple game of hitting the ball to the other person until it goes past their rectangle. It may seem simple, but back then, it was a huge achievement. Pong is one of the earliest arcade games, which is also significant.
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Many huge games came out. This helped companies have enough money to survive and create new things. Arcades also became super popular. Examples of these are Centipede, Donkey Kong, Pac-man, etc.
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Video games started dying off because companies started getting bankrupt from making too many games no one played. Luckily, video games got saved.
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Video games became very unpopular, but then Nintendo released the SNES in 1990. The games were a huge success. Consoles then became super popular.
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Nintendo and Sega went to war. They both released many consoles and games. Nintendo eventually won and Sega stopped releasing consoles.
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In 1992, Mortal Combat was released. It was a fighting game with really gory images such as ripping off someone's head or heart with pools of blood. Parents stopped letting kids play games because of the violence. Nevertheless, It still became SUPER popular.
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Systems like the Nintendo 64 started making 64 bit graphics, which started 3D gaming. This would change the world.
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Game Systems started becoming more and more advanced with graphics and extra features Like the Playstation 2 (DVD player), PS3 (Blue ray player), Wii (motion controls), etc.
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Now we have great graphics, cool audio, and things like playing against others on the internet, digitally downloaded games, and VR.