Waterworld was released as part of the Swordquest contest by Atari in 1983 to win Medieval relics, in this case, the "Crown of Life" (valued at $15,000 in 1983). Although it is commonly believed that there was no contest, it was indeed held because Atari was legally obligated to do so despite the Crash of 1983. Being completed in secrecy, an anonymous person won the crown in a secret tournament.
The player would have to navigate through water-themed obstacles and solve puzzles. The theme of the puzzles are based off of Chakra symbols. In Waterworld, there are seven rooms to explore, quite less than in the two previous Swordquest games.
Due to the Video Game Crash of 1983, Waterworld was made in extremely limited quantities. Because of this, cartridges of the game go for over $150. Complete in box copies sell for nearly $500.