Rejecting offers to direct Jaws 2, King Kong and Superman, Spielberg and actor Richard Dreyfuss re-convened to work on a film about UFOs, which became Close Encounters of the Third Kind (1977). One of the rare films both written and directed by Spielberg, Close Encounters was a critical and box office hit, giving Spielberg his first Best Director nomination from the Academy as well as earning six other Academy Awards nominations. It won Oscars in two categories (Cinematography, Vilmos Zsigmond, and a Special Achievement Award for Sound Effects Editing, Frank E. Warner). This second blockbuster helped to secure Spielberg's rise. His next film, 1941, a big-budgeted World War II farce, was not nearly as successful and though it grossed over $92.4 million worldwide (and did make a small profit for co-producing studios Columbia and Universal) it was seen as a disappointment, mainly with the critics.

What films did Spielberg turn down in the 70s?