As one of America's top hit toys of 1986-1987, Lazer Tag was aggressively leveraged by Worlds of Wonder's retail sales network in an ultimatum to force the Nintendo Entertainment System into retail stores, allowing its smash hit nationwide launch, which prompted Nintendo of America to lead the nation's recovery from the 1983 video game crash and dominate the industry.

"[5][6][7] Lazer Tag entered the nationwide controversy over the role of toy guns in violent crime and mistaken shootings by police.

[8][9][10] On April 7, 1987, 19-year-old Leonard Joseph Falcon was shot and killed in Rancho Cucamonga, California by sheriff's deputy Daniel Durrant after witnesses saw him and several friends playing Lazer Tag, mistaking the toys for real guns.

Shoot the Moon Products[12] of Pleasanton, California acquired the Lazer Tag brand name after Worlds of Wonder ceased operations in late 1990.

In August 2012, Hasbro released an all-new Lazer Tag line, which allows users to integrate an iPhone 3GS, 4, 4S, or iPod Touch unit with the blasters.

The associated Lazer Tag app converts the smartphone into a HUD unit, which displays power levels and an online leaderboard.