Bally forms a new division called Midway to deal purely with the emerging videogames market, releasing the very first microprocessor game "Gun Fight". This was a remade version of the Taito game of the same name but using a 8080 CPU to allow for more varied gameplay.
Taito release Space Invaders in Japan, and Midway gain the license for distribution in America, where it becomes a phenomenon.
From out of no-where, Pinball maker Williams releases Defender, single handedly gaining massive praise and firmly establishing them as a major force in the industry.
Namco release Pac-Man in Japan, once again Midway get the rights to distribute a game in America and sell over 100,000 units in the USA alone.
Midway release Ms Pac Man, selling 115,000 units and becoming the highest selling American arcade game in history.
Bally Midway release Tron at the same time as the movie is released, the profit from the game actually out-grosses the film.
Williams purchase the Bally/Midway game division as Bally was abandoning the arcade side of the business (not the slots and casinos). In essence, Williams now had the right to build arcade games using the Bally/Midway brand name which at the time still had enormous coin-op market respect.
Williams/Midway purchase Atari Corp.
The "Atari Games" division at Midway is renamed "Midway West", Williams & Bally Midway pinball divisions closed down.
Midway shuts down all arcade operations.