The Laser Disc (LaserDisc) format made its debut in 1978. It was the first commercially available optical disc storage medium. It pre-dates the DVD market by almost 18 years.
Arcade machines with laser disc players were created specifically for games like Dragon's Lair (Don Bluth). The game was an instant success and to this day it has been ported to dozens of different gaming platforms.
But not all laser disc games relied on traditional animation. Some laser disc games actually used live action video. Astron Belt and Galaxy Ranger were both created by Sega. Astron Belt is widely accepted as the original Laser Disc video game. However technical issues delayed the release of the game and Dragon's Lair beat the title to the market.
Find more info here on the Pioneer Laseractive.
What's it worth? Take a look at this Laseractive price guide: sold listings for a value indication.