was founded by Nolan Bushnell and Ted Dabney in 1972.
Their first major product was Pong released in 1972, the first successful coin-operated video game.
Atari was recovering from heavy losses in the 1974 fiscal year, and lacking funding to complete the project, Bushnell sold Atari to Warner Communications in 1976.
The competition along with other missteps by Atari led to financial problems in 1974, though they were able to recover by the end of the year.
Because of this, development of a console had cost at least and time to complete, but due to competition, the final product only had about a three-month shelf life before becoming outdated. By 1974, Atari had acquired Cyan Engineering, a Grass Valley electronics company founded by Steve Mayer and Larry Emmons, both former colleagues of Bushnell and Dabney from Ampex, who helped to develop new ideas for Atari's arcade games.
The interior of the cartridge that Asher and Hardy designed was sufficiently different to avoid patent conflicts, but the exterior components were directly influenced by the Channel F to help work around the static electricity concerns. Atari was still recovering from its 1974 financial woes and needed additional capital to fully enter the home console market, though Bushnell was wary of being beholden to outside financial sources.
The first inexpensive microprocessors from MOS Technologies in late 1975 made this feasible.
By 1975, Atari had released a Pong home console, competing against Magnavox, the only other major producer of home consoles at the time.
The company had, however, opened negotiations with Motorola about the use of its recently introduced Motorola 6800 for use in future systems. ===MOS Technology 6502/6507=== In September 1975, MOS Technology debuted the 6502 microprocessor for at the Wescon trade show in San Francisco.
In October 1975, Atari informed the market that it was moving forward with MOS.
They announced a lawsuit against MOS the next week. ===Building the system=== By December 1975, Atari hired Joe Decuir, a recent graduate from University of California, Berkeley who had been doing his own testing on the 6502.
While Atari obtained smaller investments through 1975, it was not at the scale they needed, and they began considering a sale to a larger firm by early 1976.
In 1982 Atari rebranded the console as the "Atari 2600", a name first used on a version of the four-switch model without woodgrain, giving it an all-black appearance. ===Sears Video Arcade === Atari continued their OEM relationship with Sears under the latter's Tele-Games brand, which started in 1975 with the original Pong.
Released on September 11, 1977, it popularized the use of microprocessor-based hardware and of games stored on swappable ROM cartridges, a format first used with the Fairchild Channel F in 1976.
Atari was recovering from heavy losses in the 1974 fiscal year, and lacking funding to complete the project, Bushnell sold Atari to Warner Communications in 1976.
A second prototype was completed by March 1976 with the help of Jay Miner, who created a chip called the Television Interface Adaptor (TIA) to send graphics and audio to a television.
Hardy had been an engineer for Fairchild and helped in the initial design of the Channel F cartridges, but he quit to join Atari in 1976.
While Atari obtained smaller investments through 1975, it was not at the scale they needed, and they began considering a sale to a larger firm by early 1976.
Negotiations took place during 1976, during which Atari cleared itself of liabilities, including settling a patent infringement lawsuit with Magnavox over Ralph H.
In mid-1976, Fairchild announced the Channel F, planned for release later that year, beating Atari to the market. By October 1976, Warner and Atari agreed to the purchase of Atari for .
The announcement was purportedly delayed to wait out the terms of the Magnavox patent lawsuit settlement, which would have given Magnavox all technical information on any of Atari's products announced between June 1, 1976 and June 1, 1977.
Released on September 11, 1977, it popularized the use of microprocessor-based hardware and of games stored on swappable ROM cartridges, a format first used with the Fairchild Channel F in 1976.
Warner's investment helped to hurry completion of the console following the release of the Channel F. The Atari VCS launched in 1977 with nine simple, low-resolution games in 2 KiB cartridges.
By 1977, development had advanced enough to brand it the "Atari Video Computer System" (VCS) and start developing games. ===Launch and success=== The unit was showcased on June 4, 1977 at the Summer Consumer Electronics Show with plans for retail release in October.
The announcement was purportedly delayed to wait out the terms of the Magnavox patent lawsuit settlement, which would have given Magnavox all technical information on any of Atari's products announced between June 1, 1976 and June 1, 1977.
Ultimately, the consoles were shipped to retailers in November 1977. The Atari VCS was launched in September 1977 at , with two joysticks and a Combat cartridge; eight additional games were sold separately.
Atari sold between 350,000 and 400,000 Atari VCS units during 1977, attributed to the delay in shipping the units and consumers' unfamiliarity with a swappable-cartridge console that is not dedicated to only one game. In 1978, Atari sold only 550,000 of the 800,000 systems manufactured.
(The company Telegames, which later produced cartridges for the 2600, is unrelated.) Sears released several models of the VCS as the Sears Video Arcade series starting in 1977.
Later European versions include a joypad. ==Games== In 1977, nine games were released on cartridge to accompany the launch of the console: Air-Sea Battle, Basic Math, Blackjack, Combat, Indy 500, Star Ship, Street Racer, Surround, and Video Olympics.
Atari cloned the Atari 3200 into the Sears Super Arcade II, but this was never released. ==References== Bibliography ==External links== A history of the Atari VCS/2600 Inside the Atari 2600 Hardware and prototypes at the Atari Museum Computer-related introductions in 1977 Products and services discontinued in 1992 2600 Home video game consoles Second-generation video game consoles 1970s toys 1980s toys
Atari sold between 350,000 and 400,000 Atari VCS units during 1977, attributed to the delay in shipping the units and consumers' unfamiliarity with a swappable-cartridge console that is not dedicated to only one game. In 1978, Atari sold only 550,000 of the 800,000 systems manufactured.
This required further financial support from Warner to cover losses. Atari sold more than 1 million consoles over the 1979 holiday season, but there was new competition from the Mattel Intellivision and Magnavox Odyssey², which also use swappable ROM cartridges. Atari obtained a license from Taito to develop a VCS conversion of its 1978 arcade hit Space Invaders.
Later, the CX42 Remote Control Joysticks, similar in appearance but using wireless technology, were released, together with a receiver whose wires could be inserted in the controller jacks. Atari introduced the CX50 Keyboard Controller in June 1978 along with two games that required it: Codebreaker and Hunt & Score.
These artists generally sat down with the programmer to learn about the game before drawing the art. An Atari VCS port of their Breakout arcade game appeared in 1978.
This required further financial support from Warner to cover losses. Atari sold more than 1 million consoles over the 1979 holiday season, but there was new competition from the Mattel Intellivision and Magnavox Odyssey², which also use swappable ROM cartridges. Atari obtained a license from Taito to develop a VCS conversion of its 1978 arcade hit Space Invaders.
The company spent $4.50 to $6 to manufacture each cartridge, plus $1 to $2 for advertising, wholesaling for . ===Third party development=== Activision, formed by Crane, Whitehead, Kaplan, and Miller in 1979, started developing third-party VCS games using their deep knowledge of VCS design and programming tricks, and began releasing games in 1980.
Production of the unit was moved to Hong Kong in 1979, where a thinner plastic was used for the casing, reducing the system's weight.
The system's killer app was the home conversion of Taito's arcade game Space Invaders in 1980.
Its release in March 1980 doubled the console's sales for the year to more than 2 million units, and was considered the Atari 2600's killer application.
The company spent $4.50 to $6 to manufacture each cartridge, plus $1 to $2 for advertising, wholesaling for . ===Third party development=== Activision, formed by Crane, Whitehead, Kaplan, and Miller in 1979, started developing third-party VCS games using their deep knowledge of VCS design and programming tricks, and began releasing games in 1980.
In 1980, Atari attempted to block the sale of the Activision cartridges, accusing the four of intellectual property infringement.
This made Activision the first third-party video game developer and established the licensing model that continues to be used by console manufacturers for game development. Activision's success led to the establishment of other third-party VCS game developers following Activision's model in the early 1980s, including U.S.
With a large library of cartridges and a low price point, the 2600 continued to sell into the late 1980s.
These two versions are commonly referred to as "Heavy Sixers" and "Light Sixers" respectively, representing the six front switches. In 1980, the difficulty switches were moved to the back of the console, leaving four switches on the front.
In 1980, Atari released Adventure, the first action-adventure game, and the first home game with a hidden Easter egg. Rick Maurer's port of Taito's Space Invaders, released in 1980, is the first VCS title to have more than one million copies sold—eventually doubling that within a year and selling a total of over cartridges by 1983.
Versions of Atari's own Asteroids and Missile Command arcade games, released in 1981, were also major hits. Each early VCS game is in a 2K ROM.
The Atari 2600, originally branded as the Atari Video Computer System (Atari VCS) until November 1982, is a [video game console] developed and produced by Atari, Inc.
By the end of its primary lifecycle in 1983–84, games for the 2600 were using more than four times the ROM of the launch games with significantly more advanced visuals and gameplay than the system was designed for, such as Activision's Pitfall!. In 1982, the Atari 2600 was the dominant game system.
Sales then doubled again for the next two years; by 1982, 10 million consoles had been sold, while its best-selling game was Pac-Man at over copies sold by 1983.
By 1984, 450,000 consoles had been sold in West Germany. In 1982, Atari launched its second programmable console, the Atari 5200.
By 1982, the 2600 cost Atari about $40 to make and was sold for an average of .
Third-party games accounted for half of VCS game sales by 1982. ===Decline and redesign=== In addition to third-party game development, Atari also received the first major threat to its hardware dominance from the Colecovision.
Coleco gained about 17% of the hardware market in 1982 compared to Atari's 58%.
Heading into the 1982 holiday shopping season, Atari had placed high sales expectations on E.T.
The game was poorly reviewed, leading to only about 1.5 million units sold. Warner Communications reported weaker results than expected in December 1982 to its shareholders, having expected a 50% year-to-year growth but only obtaining 10–15% due to declining sales at Atari.
In 1982 Atari rebranded the console as the "Atari 2600", a name first used on a version of the four-switch model without woodgrain, giving it an all-black appearance. ===Sears Video Arcade === Atari continued their OEM relationship with Sears under the latter's Tele-Games brand, which started in 1975 with the original Pong.
was the only developer for the first few years, releasing dozens of games. Two Atari published games, both from the system's peak in 1982, E.T.
By the end of its primary lifecycle in 1983–84, games for the 2600 were using more than four times the ROM of the launch games with significantly more advanced visuals and gameplay than the system was designed for, such as Activision's Pitfall!. In 1982, the Atari 2600 was the dominant game system.
Atari's downfall reverberated through the industry resulting in the video game crash of 1983. Warner sold Atari's home division to Commodore CEO Jack Tramiel in 1984.
Sales then doubled again for the next two years; by 1982, 10 million consoles had been sold, while its best-selling game was Pac-Man at over copies sold by 1983.
Coupled with the oversaturated home game market, Atari's weakened position led investors to start pulling funds out of video games, beginning a cascade of disastrous effects known as the video game crash of 1983.
Many of the third-party developers formed prior to 1983 were closed, and Mattel and Coleco left the video game market by 1985. In September 1983, Atari sent 14 truckloads of unsold Atari 2600 cartridges and other equipment to a landfill in the New Mexico desert, later labeled the Atari video game burial.
Atari reported a loss for 1983 as a whole, and continued to lose money into 1984, with a loss reported in the second quarter.
In 1983, the previously Japan-only Atari 2800 was rebranded as the Sears Video Arcade II. Sears released versions of Atari's games with Tele-Games branding, usually with different titles.
Three games were produced by Atari for Sears as exclusive releases: Steeplechase, Stellar Track, and Submarine Commander. ===Atari 2800 === The Atari 2800 is the Japanese version of the 2600 released in October 1983.
Sears released the 2800 in the US in 1983 as the Sears Video Arcade II packaged with two controllers and Space Invaders.
Released after the video game crash of 1983, and after the North American launch of the Nintendo Entertainment System, the 2600 was supported with new games and television commercials promoting "The fun is back!" Atari released several minor stylistic variations: the "large rainbow" (shown), "short rainbow", and an all-black version sold only in Ireland.
In 1980, Atari released Adventure, the first action-adventure game, and the first home game with a hidden Easter egg. Rick Maurer's port of Taito's Space Invaders, released in 1980, is the first VCS title to have more than one million copies sold—eventually doubling that within a year and selling a total of over cartridges by 1983.
the Extra-Terrestrial and Pac-Man, are cited as factors in the video game crash of 1983. A company named Mystique produced a number of pornographic games for the 2600.
In 2009, the Atari 2600 was named the number two console of all time by IGN, who cited its remarkable role as the console behind both the first video game boom and the video game crash of 1983, and called it "the console that our entire industry is built upon". ===Clones and reissues=== Modern Atari 2600 clones remain on the market.
Atari's downfall reverberated through the industry resulting in the video game crash of 1983. Warner sold Atari's home division to Commodore CEO Jack Tramiel in 1984.
By 1984, 450,000 consoles had been sold in West Germany. In 1982, Atari launched its second programmable console, the Atari 5200.
Atari reported a loss for 1983 as a whole, and continued to lose money into 1984, with a loss reported in the second quarter.
By mid-1984, software development for the 2600 had essentially stopped except that of Atari and Activision. Warner, wary of supporting its failing Atari division, started looking for buyers in 1984.
Warner sold most of Atari to Jack Tramiel, the founder of Commodore International, in July 1984 for about , though Warner retained Atari's arcade business.
In 1986, the new Atari Corporation under Tramiel released a lower-cost version of the 2600 and the backward-compatible Atari 7800, but it was Nintendo that led the recovery of the industry with its 1985 launch of the Nintendo Entertainment System.
Many of the third-party developers formed prior to 1983 were closed, and Mattel and Coleco left the video game market by 1985. In September 1983, Atari sent 14 truckloads of unsold Atari 2600 cartridges and other equipment to a landfill in the New Mexico desert, later labeled the Atari video game burial.
Tramiel was a proponent of personal computers, and de-prioritized further 2600 development following the sale. The North American video game market did not recover until about 1986, after Nintendo's 1985 launch of the Nintendo Entertainment System in North America.
In 1986, the new Atari Corporation under Tramiel released a lower-cost version of the 2600 and the backward-compatible Atari 7800, but it was Nintendo that led the recovery of the industry with its 1985 launch of the Nintendo Entertainment System.
Tramiel was a proponent of personal computers, and de-prioritized further 2600 development following the sale. The North American video game market did not recover until about 1986, after Nintendo's 1985 launch of the Nintendo Entertainment System in North America.
Atari Corporation released a redesigned model of the 2600 in 1986, supported by an ad campaign touting a price of "under 50 bucks".
The case style was used as the basis for the Atari 7800's case designed by Barney Huang. ===Atari 2600 Jr.=== The 1986 model has a smaller, cost-reduced form factor with an Atari 7800-like appearance.
Atari released the last batch of games in 1989–90 including Secret Quest and Fatal Run.
The final Atari-licensed release is the PAL-only version of the arcade game KLAX in 1990. After more than 14 years on the market, the 2600 line was formally discontinued on January 1, 1992, along with the Atari 7800 and Atari 8-bit family of home computers. ==Hardware== ===Console=== The Atari 2600's CPU is the MOS Technology 6507, a version of the 6502, running at 1.19 MHz in the 2600.
Production of the Atari 2600 ended on January 1, 1992, with an estimated 30 million units sold across its lifetime. ==History== Atari, Inc.
The final Atari-licensed release is the PAL-only version of the arcade game KLAX in 1990. After more than 14 years on the market, the 2600 line was formally discontinued on January 1, 1992, along with the Atari 7800 and Atari 8-bit family of home computers. ==Hardware== ===Console=== The Atari 2600's CPU is the MOS Technology 6507, a version of the 6502, running at 1.19 MHz in the 2600.
Atari cloned the Atari 3200 into the Sears Super Arcade II, but this was never released. ==References== Bibliography ==External links== A history of the Atari VCS/2600 Inside the Atari 2600 Hardware and prototypes at the Atari Museum Computer-related introductions in 1977 Products and services discontinued in 1992 2600 Home video game consoles Second-generation video game consoles 1970s toys 1980s toys
The TV Boy includes 127 games in an enlarged joypad. The Atari Flashback 2 console, released in 2005, contains 40 games (with four additional programs unlocked by a cheat code).
In 2009, the Atari 2600 was named the number two console of all time by IGN, who cited its remarkable role as the console behind both the first video game boom and the video game crash of 1983, and called it "the console that our entire industry is built upon". ===Clones and reissues=== Modern Atari 2600 clones remain on the market.
Long considered an urban legend that claimed the burial contained millions of unsold cartridges, the site was excavated in 2014, confirming reports from former Atari executives that only about 700,000 cartridges had actually been buried.
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