Warner Communications sells the Atari, Inc. home video game and home computer intellectual properties, including the Atari logo and trademark, inventories of home video game and home computer hardware and software, as well as certain international subsidiaries to Tramel Technology, but retains the arcade games division, which becomes Atari Games.[41] Tramel Technology is promptly renamed to Atari Corporation.[42]
Mattel sells its video game assets, including the M Network and Intellivision hardware and software intellectual property, to a group led by a former Mattel Electronics executive that becomes INTV Corporation. Mattel Electronics closes their game development offices in California and Taiwan.[43] The games development office in France is sold to investors and renamed Nice Ideas.[44]
The largest video game retailer in the world, GameStop was founded (then known as Babbage's) in Dallas, Texas.
Synapse releases the Atari 8-bit game Dimension X, over 9 months after running magazine ads showing features that were not present in the final game.[46]
Activision releases Pitfall II: Lost Caverns, one of the last major titles for the Atari 2600. Each cartridge contains a custom chip allowing improved visuals and 4-voice sound.
March – IBM releases the IBM PCjr in an attempt to enter the home computer market. It has improved sound and graphics over the original, business-oriented IBM PC, but is a commercial failure.
Atari, Inc. announces the Atari 7800, a next-gen console that's compatible with Atari 2600 cartridges, but capable of greatly improved visuals. It is shelved until 1986 due to the sale of the company and legal issues.
^"昔(1970年代)のテレビゲームは何台売れた?" [How many old (1970s) video games sold?]. Classic Videogame Station Odyssey (in Japanese). Archived from the original on January 9, 2014. Retrieved April 16, 2021.
^"ElectronicsWeek". ElectronicsWeek. Vol. 58, no. 13–23. McGraw-Hill. 1985. p. 41. The home computer market in Japan consumed 1.1 million machines last year and is growing modestly in 1985, but it remains essentially a game market. (...) The two largest producers of home computers in Japan—NEC Corp., which claims a 40% market share, and Sharp Corp., which claims 20%—do not use the MSX (Microsoft Extended Basic) system that Microsoft Corp. developed and has licensed to 18 other Japanese companies. Total MSX sales last year are estimated at 350,000 units. But NEC's best-selling 8801-MII is used mostly by university students and small businesses for bookkeeping or document filing; MSX users are overwhelmingly 15 years of age or younger—game fanatics.
^Adams, Jane Meredith (January 3, 1985). "Adam Just Couldn't Deliver on Promises". The Boston Globe. p. 41.
^"M Network Titles for Computers". Intellivision Lives. Intellivision Productions. Archived from the original on January 10, 2007. Retrieved September 25, 2018.
^"Where Are They Now?". Intellivision Lives. Archived from the original on July 27, 2017. Retrieved September 25, 2018.
^Kurt Kalata & Robert Greene. "Hydlide". Hardcore Gaming 101. Archived from the original on April 29, 2016. Retrieved May 1, 2011.