this post was submitted on 19 Aug 2024
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The first Dark Souls was 2011. Diablo was released in 1997. World of Warcraft was 2004 and while you didn't quite drop all your stuff and money you die you did have to run back to your corpse to keep from having all your stuff degrade and cost a bunch of money. The first Sonic was 1991 and getting hit makes you drop all your "money" and have to pick it back up.
Mechanic wise the first was Demons Souls in 2009. But your point still stands.
It isn't a question of who did it first, it's a question of who made it popular. Look at how many games have a death run since DS came out. Hollow Knight, Nioh, Blasphemous, etc. It's also not the same mechanic as losing your items on death.