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1st generation was PONG
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Super-nit : pong was probably 4th or 5th generation.
http://www.infoplease.com/spot/gamestimeline1.html
1st generation was the tennis game on the oscilloscope, or perhaps even earlier a tic tac toe game in 1952.
And SpaceWar! was actually a decent game. Now that was the golden day of gaming, you don't need all this fancy graphics, just some ascii line drawing...