[moconnor]

I can really recommend Jordan Mechner's Karateka and Prince of Persia journals for a look into game development in the 80s.

Every time I read one I come away energized with the same passion for creating something unique.

Edit for link: http://jordanmechner.com/ebook/

[fractallyte]

Two more game development diaries, from Andrew Braybrook (the 'Carmack' of that time!), who wrote Paradroid and Morpheus for the C64:

http://www.zzap64.co.uk/zzap3/para_birth01.html

http://www.zzap64.co.uk/mentalprocre.html

[eng_monkey]

Similarly, the ebook by Bob Pape about how he developed the ZX Spectrum version of R-Type is a very interesting document on how computer games were developed at the time and how game companies worked.

It is freely available at his Web site http://bizzley.imbahost.com/

[z3phyr]

When you mentioned Jordan Mechner, memories of me and my father playing Prince of Persia came into my mind :) It is arguably one of the best games ever!

Also a point that is to be noted is, back then every game developer was a kind of indie.