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- Nolan Bushnell quits his job at Ampex in March so he can devote his time to his Spacewar! project.
- On March 22, Ralph Baer files with the United States Patent and Trademark Office regarding a patent for "television gaming and training apparatus."
- In June, Bill Pitts and Hugh Tuck form Computer Recreations, Inc.
- Magnavox signs a license agreement with Sanders Associates regarding the Magnavox Odyssey video game console.
- Nakamura Manufacturing Ltd. adopts "Namco" as its brand name.
- In September, Computer Recreations, Inc. installs Galaxy Game, a version of Spacewar! for PDP-11 hardware and the first coin-operated video arcade game, in Tresidder Union at Stanford University.
- In November, Nutting Associates releases 1,500 cabinets of Nolan Bushnell's Computer Space — another free-standing implementation of Spacewar!, and the first mass produced video game of any kind.
- Don Rawitsch, Paul Dillenberger and Bill Heinemann, students at Carleton College develop The Oregon Trail for a mainframe with teletype terminals.
- Don Daglow programs the first computer baseball game on a PDP-10 mainframe computer at Pomona College.
- Mike Mayfield develops a Star Trek text game on a Scientific Data Systems Sigma 7 minicomputer.