A full motion video (FMV) is a video game narration technique that relies upon pre-recorded video files (rather than sprites, vectors, or 3D models) to display action in the game. While many games feature FMVs as a way to present information during cutscenes, games that are primarily presented through FMVs are referred to as full-motion video games or interactive movies.
The first wave of FMV games originated in arcades in 1983 with the release of Astron Belt from Sega and Dragon's Lair from Cinematronics. Both games used Laserdiscs to store the video used in the game, which allowed for very high quality visuals compared to current arcade games of the era. A number of arcade games using FMV with Laserdiscs were released over the next three years and the technology was touted as the future of video games. Some games released in this era reused video footage from other sources while others had it purpose made. Cliff Hanger, Bega's Battle, and Firefox reused footage while titles like Space Ace, Time Gal, and Thayer's Quest were entirely original.
The limited nature of FMV, high price to play (50 cents in an era where 25 cents was standard), high cost of the hardware and problems with reliability quickly took its toll on the buzz surrounding these games and their popularity diminished. By 1985, the allure of FMV and the Laserdisc had worn off, and the technology had disappeared from arcades by the end of 1987. RDI Video Systems (Thayer's Quest) had branched out into making a home console called the Halcyon, but it failed and they went bankrupt. Cinematronics's fortunes fared little better and they were bought out by Tradewest in 1987. Companies such as Atari canceled more prototype Laserdisc games than they released. Others, like Universal, stopped development on games after only one release despite announcing several titles.