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In 1972, the first home console system was released called Magnavox Odyssey, developed by Ralph H. Baer. That same year, Atari released Pong, an arcade game that increased video game popularity. The commercial success of Pong led other companies to develop Pong clones, spawning the video game industry. if your looking for the first viedo game October 1958: Physicist Invents First Video Game. In October 1958, Physicist William Higinbotham created what is thought to be the first video game. It was a very simple tennis game, similar to the classic 1970s video game Pong, and it was quite a hit at a Brookhaven National Laboratory open house.