This is the history of Atari 2600 console. The Atari 2600, originally branded as the Atari Video Computer System (Atari VCS) until November 1982, is a home video game console developed and produced by Atari, Inc. 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. The VCS was bundled with two joystick controllers, a conjoined pair of paddle controllers, and a game cartridge—initially Combat and later Pac-Man.
Atari was successful at creating arcade games, but their cost to develop and limited lifespan drove CEO Nolan Bushnell to seek a programmable home system. The first inexpensive microprocessors from MOS Technologies in late 1975 made this feasible. Development of the console—known as "Stella" during its prototype stage—was performed by Atari subsidiary Cyan Engineering. 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. 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. The system's killer app was the home conversion of Taito's arcade game Space Invaders in 1980. The VCS became widely successful, leading to the creation of Activision and other third-party game developers as well as competition from home console manufacturers Mattel and Coleco. 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!
Atari 2600, originally branded as Atari Video Computer System until November 1982,
is a home video game console developed and produced by Atari Incorporated.
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 Fairchild Channels F in 1976.
The Atari VSC was bundled with two joystick controllers, a conjoined pair of paddle
controllers, and a game cartridge, initially Combat and later Pac-Man.
Atari was successful at creating arcade games, but their cost to develop and limited lifespan
drove CEO Nolan Bushnell to seek a programmable home system. The first expensive microprocessors
from MOS Technologies in late 1975 made this feasible. Development of the console known as
Stella during the prototype stage was performed by Atari subsidiary Cyan Engineering. 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. Warner's investment helped to
hurry competition of the console following the release of the Channel F. The Atari VSC launched
in 1977 with nine simple, low-resolution games in two kilobyte cartridges. The system's killer
app was the home conversion of Taito's arcade game Space Invaders in 1980. The VSC became
widely successful, leading to the creation of the Activision and other third-party game developers,
as well as competition from home console manufacturers such as Mattel and Coleco.
By the end of the primary life cycle in 1983 through 1984, games for the 2600 were using more
than four times the ROM of the launch games. They had significantly more advanced visuals and
gameplay than the system was designed for, such as Activision's Pitfall. In 1982, Atari 2600 was
the dominant game system amidst competition from both new consoles and game developers.
A number of poor decisions from Atari management affected the company
and the industry as a whole. The most public was an investment into licensed games
for the 2600 including Pac-Man and E.T. the Extra-Terrestrial. Pac-Man became the system's
biggest selling game, but the holiday shopping season was critically panned and a commercial
failure. Both games and a gulf of low-quality third-party releases are frequently cited as
factors in ending Atari's relevance for the console market. Atari's downfall reverberated
through the industry, resulting in the video game crash of 1983. Werner sold Atari's home
division to Commodore CEO Jack Tramiel in 1984. In 1986, the new Atari Corporation under Tramiel
released a low-cost version of the 2600 and the backward-compatible Atari 7800, but it was the
Nintendo that led the recovery of the industry with its 1985 launch of the Nintendo Entertainment
System. The production of the Atari 2600 ended on January 1st, 1992, with an estimated 30 million
units sold across its lifespan. The most crucial events in the Atari's history have happened during
its decline and redesign period. In addition to third-party game development, Atari also received
the first major threat to its hardware dominance from ColecoVision. Coleco had a license from
in 1981, which was bundled with every ColecoVision console. Coleco gained about 17% of the hardware
market in 1982, compared to Atari's 58%. With third parties competing for the market share,
Atari worked to maintain dominance in the market by acquiring licenses for popular arcade games
and other properties to make games. Pac-Man has numerous technical and aesthetic flaws,
but nevertheless, more than 10 million copies were sold. Heading into 1982 holiday shopping season,
Atari had placed high sales expectations on E.T., the extraterrestrial, a game programmed in about
six weeks to capture the strong interest of the firm. Atari produced an estimated 4 million
cartridges, expecting the game to sell well. The game was poorly reviewed, leading to about 1.5
million units sold. Warner Communications reported weaker results than expected in December 1982 to
its shareholders, having expected 50% year-to-year growth but only obtaining 10% to 15% due to
declining sales at Atari. Coupled with the oversaturated home game market, Atari's weakened
position led investors to start pulling funds out of the video games, beginning a cascade of
disastrous events known as 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
landfill in the Mexico desert, later labeled as the Atari video game Burial. 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. Atari reported a $536 million loss in 1983 as a whole, and continued to
lose money into 1984 with $425 million loss reported in the second quarter. By mid-1984,
software development for the 2600 had essentially stopped, except that of Atari and Activision.
Warner, weary 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 $240 million, though Warner retained Atari's arcade business.
Tramiel was a proponent of personal computers and deprioritized 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. With a large library of cartridges and a low price point,
the 2600 continued to sell into the late 1980s. Atari released the last bunch of games in 1989
through 1990, including Secret Quest and Fatal Run. The final Atari licensed release is the PAL
only version of the game called Klax. It was released in 1990. After more than 14 years on
the market, the 2600 line was formally discontinued on January 1, 1992, along with
Atari 7800 and Atari 8-bit family of home computers. The cost-reduced model was called
Atari 2600 Jr. The Atari 2600 Jr., released in 1986, had a smaller, cost-reduced form factor
with an Atari 7800-like appearance. It was advertised as a budget gaming system under U.S.
$49.99, with the ability to run a large collection of games. Released after the video game crash of
1983 and after the North American launch of the Nintendo Entertainment System,
the 2600 was supported with the new games and television commercials promoting The Fun is Back.
Atari released several minor stylistic variations, the large rainbow, short rainbow,
and an all-black version sold only in Ireland. The later European versions included a joypad.
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