That was probably around 1982-1984, when Alan Kay was Chief Scientist at Atari, and set up Atari Cambridge Research Lab.

Atari Cambridge Research- part 1 - Cynthia Solomon:

https://www.youtube.com/watch?v=CR2CwKculBU

>This is a demonstration of some of the works in progress from July 1982 to April, 1984. From learning Logo, a look at our work at introducing people to computers, to music with some of our futuristic instruments. We'll take you on a tour of our lab. Director or Research, Cynthia Solomon.

>I'm Cynthia Solomon. You're about to see some of the research that has been going on at the Atari Cambridge Research Laboratory. I've been its director since we started in 1982. The staff consisted of 22 full time research and support people, as well as 10 consultants.

>Our research has been motivated by our past experiences in the Logo Group at the MIT Artificial Intelligence Laboratory, where we worked with Seymour Papert and Marvin Minsky.

>We wanted to get Logo out of the laboratory and into the world. We wanted to share it, and share its potential as a powerful too for thinking. And so before we joined Atari, many of us were part of the development team at Logo Computer Systems, where we designed, implemented, and documented Apple Logo.

>When we finished Apple Logo, I left Logo Computer Systems. I wanted to get back to doing research. I contacted Alan Kay, who was Chief Scientist at Atari, and it turned out he was interested in setting up a research laboratory in Cambridge, near MIT.

>He was familiar with our previous Logo research, and was enthusiastic about supporting our new work.

>We began to explore the following areas:

>We looked at was of controlling computers by gestures: by touch, by gross body movement.

>We designed an object oriented Logo, and developed applications in it.

>We built several mechanical devices to add new dimensions to computing environments.

>We began to build tools toward a musical play station.

>And as always, we continued our work with children.

The other parts of this video and many more amazing historic videos are in Cynthia Solomon's youtube channel:

https://www.youtube.com/user/cynthiaso/videos

Atari Cambridge Research- part 2: Margaret Minsky, Danny Hillis, David Wallace (gumby!): a gestural system, touch screens, force sensitivity, painting, visual programming, button box inspired by Warren Robinett's "Rocky's Boots" program

https://www.youtube.com/watch?v=-Wq6SQTVM9M

Rocky's Boots:

https://en.wikipedia.org/wiki/Rocky%27s_Boots

Alan Kay on Rocky's Boots, Robot Odyssey, and visual programming:

https://news.ycombinator.com/item?id=17422497

https://news.ycombinator.com/item?id=21899376

https://news.ycombinator.com/item?id=17423040

Atari Cambridge Research- part 3: Ed Hardebeck: a video body gestural system; QLogo: Gary Drescher, Jeremy Jones, Steven Hain

https://www.youtube.com/watch?v=ClKQHgIoLPc

Atari Cambridge Research- part 4: Michael Granfield: Choriographer's Workstation; Marionette Machine: Mark Gross; Max Bohensky: Force Feedback Joystick

https://www.youtube.com/watch?v=R3qPCZ5z0UQ

Atari Cambridge Research- part 5: Music Box: David Levitt

https://www.youtube.com/watch?v=ocwsVkqEKys

Atari Cambridge Research- part 6: Music Box: Tom Trobaugh, Drum Machine: Jim Davis

https://www.youtube.com/watch?v=DhA0FGsin_s

Atari Cambridge Research- part 6: Marvin Minsky 1984 closing remarks

https://www.youtube.com/watch?v=7rg4a18svBQ

Another talk by Alan Kay from 1987:

Alan Kay: Doing with Images Makes Symbols (Full Version)

https://www.youtube.com/watch?v=p2LZLYcu_JY