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New companies: Mindscape, Inc., Sierra On-Line.
Mattel creates the original five-programmer Intellivision game design team, nicknamed the Blue Sky Rangers by a magazine writer when the company keeps their names secret in a TV Guide interview.
The US arcade game market's revenues rise to $7.19 billion in 1980 (equivalent to $20.6 billion in 2016).
 The home video game console market in the US generates $500 million in sales of systems and cartridges (equivalent to $1.44 billion in 2016).
February: Namco releases , Navarone (which was originally developed by Kaitei Takara Sagashi K. K. Tokki as a prototype) and .
SOS May: Namco releases , its biggest-selling game. One of the most influential games, it had the first gaming Pac-Man mascot character, established the maze chase video games genre, opened gaming to female audiences, and introduced  power-ups and  cutscenes.
 June: Namco releases , which was one of the first games to feature King & Balloon speech synthesis.
October: Namco releases .
Tank Battalion Namco releases , King & Balloon which is the first game to feature  synthesized voices. It also featured dual-core processing, using two Z80 microprocessors, the second to drive a DAC for speech.
 Namco releases Navalone, Kaitei Takara Sagashi, SOS, Tank Battalion, and Rally-X, which is the first game to feature a bonus round.
Nintendo releases the arcade game and the Radar Scope Game & Watch handheld LCD game by Gunpei Yokoi.
Universal release the arcade game , often cited as the first Space Panic platform game.
Stern Electronics (a subsidiary of Universal Research Laboratories) releases the arcade game.
Berzerk Warner Communications' Atari releases the arcade game, and the Missile Command arcade game (it was later enhanced for the US Army for military training) – albeit relying on specialized vector graphics hardware.
Battlezone Williams Electronics releases the arcade game.
Defender Warner Communications' Atari releases the (by Centipede Ed Logg & Dona Bailey) and arcade games and also the Warlords color vector arcade game.