Asteroids was immediately successful upon release. It displaced Space Invaders by popularity in the United States and became Atari’s best-selling arcade game of all time, with over 70,000 units sold. Atari earned an estimated $150 million in sales from the game, and arcade operators earned a further $500 million from coin drops. Atari had been in the process of manufacturing another vector game, Lunar Lander, but demand for Asteroids was so high “that several hundred Asteroids games were shipped in Lunar Lander cabinets”. Asteroids was so popular that some video arcade operators had to install large boxes to hold the number of coins spent by players, and Atari assembly line workers that ignored other games they built played finished Asteroids machines awaiting shipping. It replaced Space Invaders at the top of the US RePlay amusement arcade charts in April 1980, though Space Invaders remained the top game at street locations. Asteroids went on to become the highest-grossing arcade video game of 1980 in the United States, dethroning Space Invaders. It shipped 70,000 arcade units worldwide in 1980, including over 60,000 sold in the United States that year, and grossed about $700 million worldwide ($3 billion adjusted for inflation) by 1980. The game remained at the top of the US RePlay charts through March 1981. The game did not perform as well overseas in Europe and Asia. It sold 30,000 arcade units overseas, for a total of 100,000 arcade units sold worldwide. Atari manufactured 76,312 units from its US and Ireland plants, including 21,394 Asteroids Deluxe units. It was a commercial failure in Japan when it released there in 1980, partly due to its complex controls and partly due to the Japanese market beginning to lose interest in space shoot ’em ups at the time.

Asteroids received positive reviews from critics, and has been regarded as Logg’s magnum opus. Richard A. Edwards reviewed the 1981 Asteroids home cartridge in The Space Gamer No. 46. Edwards commented that “this home cartridge is a virtual duplicate of the ever-popular Atari arcade game. […] If blasting asteroids is the thing you want to do then this is the game, but at this price I can’t wholeheartedly recommend it”. Video Games Player magazine reviewed the Atari VCS version, rating the graphics and sound a B, while giving the game an overall B+ rating. Electronic Fun with Computers & Games magazine gave the Atari VCS version an A rating.

William Cassidy, writing for GameSpy‘s “Classic Gaming”, noticed its innovations, including being one of the first video games to track initials and allow players to enter their initials for appearing in the top 10 high scores, and commented that “the vector graphics fit the futuristic outer space theme very well”. In 1995, Flux magazine ranked the arcade version 11th on their “Top 100 Video Games”. In 1996, Next Generation listed it as number 39 on their “Top 100 Games of All Time”, particularly lauding the control dynamics which require “the constant juggling of speed, positioning, and direction”. In 1999, Next Generation listed Asteroids as number 29 on their “Top 50 Games of All Time”, commenting that “Asteroids was a classic the day it was released, and it has never lost any of its appeal”. Asteroids was ranked fourth on Retro Gamer‘s list of “Top 25 Arcade Games”; the Retro Gamer staff cited its simplicity and the lack of a proper ending as allowances of revisiting the game. In 2012, Asteroids was listed on Time‘s All-Time 100 greatest video games list. Entertainment Weekly named Asteroids one of the top ten games for the Atari 2600 in 2013. It was added to the Museum of Modern Art‘s collection of video games. In 2021, The Guardian listed Asteroids as the second greatest video game of the 1970s, just below Galaxian (1979). By contrast, in March 1983 the Atari 8-bit port of Asteroids won sixth place in Softline‘s Dog of the Year awards “for badness in computer games”, Atari division, based on reader submissions.

Usage of the names of Saturday Night Live characters “Mr. Bill” and “Sluggo” to refer to the saucers in an Esquire article about the game led to Logg receiving a cease and desist letter from a lawyer with the “Mr. Bill Trademark”.

Released in 1981, Asteroids Deluxe was the first sequel to Asteroids. Dave Shepperd edited the code and made enhancements to the game without Logg’s involvement. The onscreen objects are tinted blue, and hyperspace is replaced by a shield that depletes when used. The asteroids rotate, and new “killer satellite” enemies break into smaller ships that home in on the player’s position. The arcade machine’s monitor displays vector graphics overlaying a holographic backdrop. The game is more difficult than the original and enables saucers to shoot across the screen boundary, eliminating the lurking strategy for high scores in the original.

Space Duel, released in arcades in 1982, replaces the rocks with colorful geometric shapes and adds cooperative two-player gameplay.

1987’s Blasteroids includes power-ups, ship morphing, branching levels, bosses, and the ability to dock ships in multiplayer for added firepower. Blasteroids uses raster graphics instead of vectors.