this wasn't the first but pole position is awesome for those who don't know its a racing game maybe the first racing game not sure if i feel like it i'll check it
The first game ever created was a game called "Pong" and you were 2 little white square paddles trying to hit a white square to score, like air hockey only old, not able to be played on any existing TV and a wider goal.
it was pong it was not made for the atari it was its own thing and it sucked quite badly (basicly it was a knob that hooked to your tv and u turned the knob and a paddle would go up or down depending on the direction u turn and ur goal was to hit the square past ur opponent which is also a a paddle thing that just has terrible reaction)