Reader Rabbit 1

The game takes place in the titular Word Factory, which teaches reading and spelling in four different activities and has over 200 three-letter words and more than 70 pictures for learning. The following four activities are:

1. Sorter - the player is required to pick words that start with a chosen letter and discard the rest.

Reader Rabbit was originally conceived by the Grimm sisters; Leslie authored the game while Corinne and Cindy contributed the art. Version 1.0 of Reader Rabbit, titled Reader Rabbit and the Fabulous Word Factory, was released in early 1984 (and featured in the 1983 holiday special for Computer Chronicles), while versions 1.1, 1.2 and 1.3 were released in 1984. Development for an updated 2.0 version began at the start of 1984. By this time, Leslie Grimm had suffered a disc fracture but was able to develop the game while bedridden, thanks to a detachable keyboard provided by her colleague Pete Rowe. Many critics and gaming historians erroneously assert that the Reader Rabbit series officially began in 1986.

In 1988, the first "talking" version of Reader Rabbit was released for the Apple IIGS and Tandy 1000 computers. The game was remade as an enhanced version for MS-DOS in 1991 to incorporate the 256-color VGA mode, sound card option and mouse compatibility. Another remake was done as a deluxe version along with its two sequels and implemented digitized speech.

The Learning Company showcased the game alongside Number Stamper, Word Spinner, Addition Magician and Colorasaurus in the 1984 Winter Consumer Electronics Show. Dr. Ann Piestrup praised the game for its ability to aid young learners in overcoming the difficulties of reading and its word recognition.