Here's a little history for you!
Enjoy!
Spacewar! : The first computer game invented by Steve Russell
"If I hadn't done it, someone would've done something equally exciting if not better in the next six months. I just happened to get there first." - Steve Russell nickname "Slug"
It was in 1962 when a young computer programmer from MIT, Steve Russell fueled with inspiration from the writings of E. E. "Doc" Smith*, led the team that created the first computer game. It took the team about 200 man-hours to write the first version of Spacewar. Steve Russell wrote Spacewar on a PDP-1, an early DEC (Digital Equipment Corporation) interactive mini computer which used a cathode-ray tube type display and keyboard input. The computer was a donation to MIT from DEC, who hoped MIT's think tank would be able to do something remarkable with their product. A computer game called Spacewar was the last thing DEC expected who later provided the game as a diagnostic program for their customers. Russell never profited from Spacewars.
The PDP-1's operating system was the first to allow multiple users to share the computer simultaneously. This was perfect for playing Spacewar, which was a two-player game involving warring spaceships firing photon torpedoes. Each player could maneuver a spaceship and score by firing missiles at his opponent while avoiding the gravitational pull of the sun. Try playing a replica** of the computer game for yourselves. It still holds today up as a great way to waste a few hours. By the mid-sixties, when computer time was still very expensive, Spacewar could be found on nearly every research computer in the country. Steve Russell transferred to Stanford University, where he introduced computer game programming and Spacewar to an engineering student called Nolan Bushnell. Bushnell went on to write the first coin-operated computer arcade game and start Atari.
*An interesting sidenote is that "Doc" Smith, besides being a great science fiction writer, held a Ph.D. in chemical engineering and was the researcher who figured out how to get powdered sugar to stick to doughnuts.
**Spacewar! was conceived in 1961 by Martin Graetz, Steve Russell, and Wayne Wiitanen. It was first realized on the PDP-1 in 1962 by Steve Russell, Peter Samson, Dan Edwards and Martin Graetz, together with Alan Kotok, Steve Piner and Robert A. Saunders.
Here's the real link:
http://inventors.about.com/library/weekly/aa090198.htm