Game:

The Way of the Exploding Fist (1985)

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Fighting games had a rough start in the arcades, particularly those more complex than just boxing games. The earliest example of an arcade game based on martial arts didn't come until 1984, with Data East's Karate Champ, developed by none other than Technos Japan, later responsible for the Renegade and Double Dragon series. Its most immediate competitor was Konami's arcade classic, Yie Ar Kung-Fu, which had a more entertaining manner of presenting martial arts in a game, opposed to clean and technical.

Then there was The Way of the Exploding Fist which came from fledgling Australian developer Beam Software and was tailored for the UK market by its publishing wing, Melbourne House for the Commodore 64 in 1985

Melbourne House's the Way of the Exploding Fist became more of a direct competitor to Karate Champ, because it focused on the technical side of simulating one-on-one karate fighting. The convenient part of it was, that Exploding Fist was only developed for home computers, which would only get you invest your money once in the game, and let you become a master of martial joystick arts in your living room instead of wasting coins in an arcade machine. Perhaps even more conveniently, neither Karate Champ or Yie Ar Kung-Fu got their home conversions until months after Exploding Fist.

This video looks at all the official, unoffical and sequels of this retro game.
Enjoy!