The first actual computer game is generally thought to be Spacewar! Developed in 1962 at MIT by Steve Russell. A two player game, which each player has a ship which they can move as they attempt to shoot each other. The goal of the game is to destroy the other player before being hit yourself.
The arcade game Pong was created by Nolan Bushnell, together Nolan and Ted Dabney started Atari computers that same year in 1975, the company released Pong as a home video game.
The success of the Apple 2 and Commodore PET in the late 70's brought the rise and awareness of much cheaper rivals in the 1980's. Due to the upbringing of the rivals, this helped the knowledge and awareness of computers and gaming.
The great crash in 1983, it was called this because many of the North American gaming companies went into bankruptcy from the late 1983 to early 1984. This crash caused the loss of production of the known E.T and pac-man for Atari 2600 console.
In 1985 the North American video game market was revived after the release of the 8-bit console, the femicon, from NES (Nintendo Entertainment System). It was released with the introduction of The Mario Brothers :) this made it an instant success.