Don Bluth Studios, RDI Video Systems (formerly AMS) and Cinematronics (together known as Magicom) teamed up once again and released another game called Space Ace in October 1983.  This game introduced us to three new characters; Dexter/Ace, Kimmy, and Borf.  As you started a new game, you were given the option of different skill levels.  "Space Cadet", "Space Captain", and "Space Ace" were your choices.  The "Cadet" version, being the easiest, skipped about half of the animation for the game.  The "Captain" version gave some more of the animation.  The "Ace" version included all the animation on the laserdisc.

For the animation of Space Ace, models were made of Ace's Starship and his motorcycle.  They were then filmed, traced over, and painted.  They also built a large scale tunnel so a camera could move through it for the dogfight sequence.  Once again, to keep the cost down, they decided not to hire professional voice actors.  Instead they all pitched in and did the voices themselves.  Animator, Jeff Etter was the voice of Ace and storyman / animator Will Finn was the voice of Dexter.  Animator, Lorna Pomeroy (wife of Co-Producer, John Pomeroy) was the voice of Kimmy and Don Bluth was the voice of Borf.  The narrator was Michael Rye and the musical score was created by Christopher Stone.

In 1991, the Leland Corp. re-released Space Ace as a conversion kit for Dragon's Lair II.  This version was a little different because they added diagonal moves in quite a few places which made it a bit harder to play.  Also, the "cadet" and "captain" skill levels were dropped so you could only play the "Ace" skill level.