The player assumes control of an American F-14 Tomcat fighter jet, and must clear each of the game's eighteen unique stages by destroying incoming enemies, using both a machine gun and a limited supply of heat-seeking missiles.
Designed by Sega veteran Yu Suzuki and the Sega AM2 division, After Burner was intended as being Sega's first "true blockbuster" video game. Development began in December 1986, shortly after the completion of Out Run, and was kept as a closely guarded secret within the company. Suzuki was inspired by the 1986 films Top Gun and Laputa: Castle in the Sky; he originally planned for the game to have a steampunk aesthetic similar to Laputa, but instead went with a Top Gun look to make the game approachable for worldwide audiences. It was designed outside the company in a building named "Studio 128", due to Sega adopting a flextime schedule to allow for games to be worked outside company headquarters. An updated version with the addition of throttle controls, After Burner II, was released later the same year.
Game Machine listed After Burner as being the most popular arcade game of August 1987 in Japan, where it went on to be the second highest-grossing large arcade game of 1987 (just below Out Run) and the overall highest-grossing arcade game of 1988. In the United States, it was one of the top five highest-grossing dedicated arcade games of 1988, and remained a top ten earner at various arcades through 1990. In the United Kingdom, it was the top-grossing arcade game upon release in September 1987.