Has anyone mentioned Gale Racer / Rad Mobile yet? That not only has water on the screen but also fog and working windowwipers
When you say "on screen", I think most people assume you mean that it's visible in the game, i.e. you can see it on the screen (TV or monitor). I think what you actually mean is that the game treats the droplets as if they're on a pane of glass, which stays in the same place relative to the camera - right? I remember Conker: Live and Reloaded for Xbox had that kind of effect at various different points throughout the game. Probably not the first, but there's another example.
Yeah, and the demo I saw back then was about waves (water waves) ON SCREEN man. And it was in Troldsspejlet, where they also showed graphical demos. Back in the day. Sorry that I can not be more specific. But the Danish guy who made that demo, became quite famous. If I recall correctly. And if I recall even more correctly, Then the demo where the water was, was at the sea or an alcove of some sort. And it was at night. Sorry I can not give you anymore specific details. But that is about it, I can give of details. But that water effect, was in waves.
2D examples: Outrun Turbo (1989) had rain on one of the "courses". Chase HQ II: Special Crime Investigation (1989) has rain that splashes on the road. See 8:03 for flooded track section, 10:55 for raining section