Originally Posted by Sergorn 
I think Underworld was the first one which had *textured* 3D graphics though.
-Sergorn
Alternate Reality was the first textured 3D RPG and it came out in 1985 on the Atari 8bit. Quote - "This vid shows the then-revolutionary texture-mapped 3D graphics" -
http://www.youtube.com/watch?v=9KmPOb4PGBQ
Or…
http://www.atarimania.com/game-atari…-city_238.html
JH: "What was the most difficult part of writing The City?"
PP: "I had no knowledge of 3-D. I was unaware of the techniques and terminology that existed in the academic world, so I had to reinvent many things. I used a vertical, single line Z-buffer - though I didn't know it was called that at the time - and a number of techniques to cull the polygons. I used self-modifying code in the loops that did the incremental texture mapping. I did cycle-counting to allow hardware sprites to be in two places at once. It was a challenge to do 3-D fully textured mapped graphics - even with fixed ninety degree turns - on a computer that ran at less than 2MHz and had 48K of RAM.