Atari 2600
Video Computer System (VCS)

The original Atari 2600 (VCS)

The Atari Video Computer System was released in 1977 and was a huge success for Atari.   During its life, it was known by several different names, including Video Computer System, VCS, and eventually the Atari 2600.  It was such a success, that Atari created "clones" for sales at Sears under the name "Telegame Video Arcade."  The games for this system were loaded via a cartridge, and it could be used with any standard television set.   During the early 80's, the 2600, games, accessories, etc. generated almost two-thirds of the profits for Atari's parent company: Warner Communications.

     
Air-Sea Battle, Battlezone, Frogger, and Superman
Click on images to enlarge

The old Atari has often been compared to Microsoft. During the Atari heyday, Atari had a complete stranglehold on the industry.   Atari growth was completely out of control.  They practically took over all available office space in Sunnyvale, CA.  They were the fastest growing company of all time: a record that, I believe, still stands today.  Not even the mighty Microsoft has topped the way Atari grew so fast.

There were many video games available at the time from such companies as Coleco and Mattel, but none could overthrow Atari as King. At Christmas, or on birthdays, kids wouldn't want toys, they wanted to "play Atari."  Atari picked up on this, and used the slogan "Have you played Atari Today?" in its advertising for years.

     
Adventure, Centipede, Vanguard, and Defender
Click on images to enlarge

The system was so popular, in fact, that the main competitors of the time (Coleco and Mattel) released add-on modules that would allow the use of 2600 games on the rival systems.   Those same competitors even translated some of their games for use on the 2600.

Atari released a more advanced gaming unit called the 5200 SuperSystem in 1982. The 5200 was a flop, and it actually INCREASED sales of the older 2600 systems and games.   Atari even released an add-on module for the 5200 so it could play the older 2600 games.  In effect, Atari was competing with itself!!!!

Atari brought their own arcade hits home with games such as Asteroids, Missile Command, Pole Position, and others.  They also acquired the rights to 3rd party games like Space Invaders, and all of the the Pac-Man series.  Pac-Man in particular generated so much interest in Atari systems, both video games and the 400/800 computers, that both Atari and their retailers couldn't keep up with the demand.

     
Some Atari 2600 cartridge box art

Other companies such as Coleco, Mattel, Parker Bros. etc. brought even more arcade hits to the 2600 with such titles as Donkey Kong, Donkey Kong Jr., Tron, BurgerTime, Q*Bert, Frogger, etc.  Third party companies such as Activision were formed by former Atari programmers to keep up with the demand of the game-hungry public.

In the end, it was not a competitor that brought down Atari, it was the great video game crash in 1983/1984.  At that time, the market was completely saturated with product, and none of it was selling. Both Coleco and Mattel got out of the business, but Atari managed to hold on.  At that time, the Atari 2600 had more game titles to its credit than all other systems combined.

Faced with soaring expenses and no cash flow, Warner Communications sold the Atari Computer/Video Game Division to Jack Tramiel and his family in 1984.  The Tramiel family is most famous for founding Commodore, which was competing with Atari for home computers.  Jack had recently been booted out of Commodore, and he bought Atari with the intent of "getting even."

Jack had absolutely no knowledge of the video game industry, and bet the company on the Atari 400/800 home computers.  Jack had warehouses full of the new 7800 ProSystem game units, along with the restyled 2600 system called the 2600jr, but he never shipped them. Two years later, in late 1986, there were no Atari systems to be found in the stores.  This drought of new product from Atari practically gave the home gaming market to Nintendo and Sega.  They still dominate the video game market to this day.

Jack was caught with his pants down.  The entire video game market had passed him by over a two year period, and he had absolutely no clue what was going on until it was too late. By the time he smartened up and released the 7800 (which had full compatibility with the 2600) and the 2600jr., there were no games on the market to go with the systems, and sales were
non-existent.

While the 7800 was ahead of its time when it was created in 1983/1984.  In 1986/1987 when it was released, it was still a product that capable of competing with the market leaders.  However, the gamers saw the 7800/2600jr. for what they were - just a rehash of yesterday. At that time, the Atari 2600jr. was seen as technologically inferior compared with the existing systems of the day.  Of course, if these systems had been released in 1983/1984 as they were intended, Atari might still be around today.

It is estimated that Atari manufactured over 16 million 2600 systems worldwide.