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Atari: The Golden Years -- A History, 1978-1981
 
 
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Features
  Atari: The Golden Years -- A History, 1978-1981
by Steve Fulton
22 comments
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August 21, 2008 Article Start Previous Page 10 of 20 Next
 

1979: Home Computers

By the January CES show in 1979, Atari had preliminary prototypes of its two new computers, the Atari 400 and Atari 800. With the Apple II, TRS-80 and Commodore PET already released, and with the market for personal computers still an unknown quantity, many people within Atari questioned this move. However, Ray Kassar was adamant that Atari get into the computer business as soon as possible.

In a Spring 1979 newsletter to employees, Ray Kassar explained to Atari employees about the 400 and 800, and the marketplace they would be entering.

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"1979 will be a year of new product introductions. The most ambitious of these new products is our new line of personal computers, the Atari 400 and Atari 800. The entry into this marketplace is a significant challenge to all of us. The market is very competitive and the quality and product performance standard very high." cv

-Ray Kassar Q1 report to employees, Spring 1979

The good news was that Jay Miner, Joe Decuir, 'The Fantastic Four', and the rest of the team who had designed the Atari computer line had done an exemplary job.

"It is hard to overstate what a feat these machines were. Based largely on the Apple, they were designed to do everything the Apple could do, and then some. As it turned out, the machines were so far ahead of their time, Atari ended up having no clear idea just what to do with them." cvi

- John Anderson, Creative Computing

However, while the hardware of the computers was outstanding, the software situation was not. Since Warner was in the record business it viewed software for the computers the same way it viewed LPs and song publishing: Warner wanted to control it all.

Warner wanted to build every application, and threatened to sue anyone who would dare make software for the Atari computers. This flew in the face of the rest of the computer industry, and started the 400 and 800 off on a shaky footing compared to the competition, which had no such restrictions.

"The big difference was Warner Communications against Steve Jobs. Warner could never win that one. I don't know if I could have, but I wouldn't have made the same mistakes Warner did. The main problem that allowed Apple to dominate was, in fact, not technology but business strategy. Steve was out evangelizing to software developers to build software for their machines. Our strategy with the video games was that we basically wanted to give away the hardware and make money on the software. That called for a quasi-closed system.

Warner thought that was the right way to do the computers business, too. So they said, 'Not only are we not going to help third-party developers, we're going to sue you if you use our operating environment.' So everybody that wanted to get into the software business supported Apple over Atari. So basically Warner drove the coffin nail in the Atari 800, despite it having a clearly superior chipset, a better operating environment... We had a lot of innovations in the Atari 800 that became standard later on." cvii

- Nolan Bushnell

Even after Bushnell was gone, the remaining team begged Kassar to open up the Atari computer line to independent developers, and open-up the machines to allow for third party peripherals. For several years Atari refused to even provide documentation to owners of the computers about their internals.

"All of us on the project strongly urged senior management to make the Atari 400/800 an open design and publish the operating system and hardware manuals. We felt this was essential to making the computer successful because it would encourage outside development and allow much more software to be developed than Atari could ever produce. Unfortunately, management decided to make it a closed system. A few years later that decision was reversed and the entire listing to the OS was published, but Atari didn't make any effort to sanitize the comments. So, you'll see comments in the listing like, 'I hope this works!'" cviii

- Alan Miller

Even with their "open hardware" limitations, the Atari computers were still feature-filled and powerful. Atari worked feverishly to prepare the line for a November release. Part of Atari's strategy was to return to one of their old stand-bys that had supported them from the beginning of the consumer era: Sears.

To make it into the Sears catalog for the 1979 Christmas season, Atari sent hand-built 400 and 800 units to Sears on August 29, 1979 so they could be considered "shipped" for the Sears deadline. cix

"The first official small shipment of the 400/800 was on August 29th 1979. These were hand built pilot run units to Sears that needed to be in stock by Sept. 1 so they could be placed in the big fall catalog. The units were placed in the Sears warehouse and then immediately returned to Atari after the "in stock" requirement had been meet." cx

- Jerry Jessop

Atari's plan was to create a new market for the 400/800 by calling them "Home Computers". It wanted to take away the "hacker" mystique of the devices and make them accessible to the mass market. This flew in the face of research at the time that suggested the market for home computers would not mature for several years. cxi

"We believe that the Atari computers are different because from word one they were developed to take away whatever apprehensions a first time user might have and help him or her feel good about interfacing with our product. With Atari computers, you don't have to stop and think before you use them. Of course, more and more of the younger generation are learning to program and work with more sophisticated applications, and they will have the capability of doing so with our product." cxii

-Conrad Jutson, Atari Computer Division VP of sales and marketing

"Conrad Jutson was an extremely thoughtful, erudite gentleman with twenty years in consumer electronics, most recently in the stereo field. His experience in that industry revealed a clear understanding of the computer as the central console in a components-oriented system. As it turned out, he and Atari were a little ahead of their time." cxiii

- Michael S. Tomczyk

The first advertisements for the Atari computers appeared in magazines such as Byte in November 1979 (which, at the time, described itself as a "small systems" magazine.) The 400 was priced at $549, the 800 at $999. cxiv

However, despite Atari's efforts to separate the computers from the company's popular video games, some of the first reviews (while positive) still mentioned the connection. It was a reputation Atari's computers could never really shake.

"With the introduction of the Atari line of computers we are seeing a third generation of microcomputer -- not just from the hardware end but also from a marketing approach. These computers are slightly cheaper than those of the previous generation. The major difference is in the configuration and the application for which the systems were designed. A recent article in Computing described the Atari computers as hybrids -- a cross between a video game and a small computer." cxv

- John Victor, Compute! magazine

Because the machines were closed, Atari had to develop all the games and applications for the computers in-house. To do this, the company started ramping up applications developers throughout 1979. Since many of the VCS programmers were disgruntled with their situation, they saw greener pastures with the more powerful and exciting computer line.

However, with the loss of the Fantastic Four, the VCS division was not ready to let them all jump ship just yet. One of the first programmers to make the switch was a recently hired war/strategy game designer named Chris Crawford.

"On September 4, 1979 I began my career as a professional game designer at Atari. The new Atari Home Computer System (HCS) with two models, the 400 and 800, was just coming out, and all the game designers wanted to work on those machines. Management therefore ordered that everybody who wanted to work on the home computers must first complete one on the game machine." cxvi

- Chris Crawford

Crawford had been hired to make VCS games, but his first and only, Wizard, was never released. Crawford said, "It didn't fit well into the product line." cxvii

Since Crawford had already designed a few computer games as a freelancer for the IBM 1130, Commodore PET, Tandy and Apple computers, it was not too much of a jump for him to get to work on software for the Atari 8-bit computer line.

However, without the proper documentation, he and other software programmers for Atari had to piece together information about the innards of the machine before they could make many usable programs.

Even with an emphasis on internal software, the early selection for the computers was rather meager. There were some productivity packages like Atari Accountant, BASIC and Atari Word Processor. However, coming from the premier name in video games, the entertainment software left much to be desired. The meager selection of early game titles for the computers included Basketball and Chess.

"...they didn't want the 800 to be seen as just a game machine; they wanted to compete with the Apple II" cxviii

- Doug Neubauer

 
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Comments

Clay Cowgill
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Mr. Fulton-- you officially owe me about an hour and a half of my workday!

Thanks for the great article, although I must say that I find the claim that the VIC-20 was more powerful than an Atari 400 a bit tough to swallow... ;-)

-Clay

Steve Fulton
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Clay,

Thanks. That probably should read "arguably more powerful" or "perceived as more powerful". In retrospect, it wasn't.

-Steve

Bruce Atkinson
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The Vic-20 had a real keyboard and similar processor. It didn't have the memory, graphics chips, or operating system that the 400 and 800 had. The Atari OS was much better than most people give it credit it for. It was general purpose with loadable device drivers, before most other home computers had that.

John Abbe
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I couldn't stop myself from reading this through either. And i'm so glad i did, because i'm pretty sure i played that game Nightmare that GCC made for Atari, at 1001 Plays in Cambridge - it was a *great* game, which i tried to find again for years. Too bad they never released it, i've e-mailed GCC to see if i can contact any of the developers to see if they have ROMs for MAME. I also updated their Wikipedia page, and referenced this article.

Thomas Djafari
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Great article!
Having worked at Time Warner, back in the SF Rush / Rise of the Robots era, I totally recognize the pattern that has also poisoned most large developers :)

Jason Cumming
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Enjoyed the article immensely.
Sorry to be a pingeek but I think there's a misplaced comma: Superman the pinball, more like 3500-5000 units sold according to the ipdb. 10 K sales from the late 70's on was blockbuster.

Mark Delfs
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This is another fantastic article--it felt as though I was there (We used our neighbor's 2600 because my parents wouldn't buy us one!) for the whole thing based on what you are reliving. Excellent, and please keep them coming!

Simon Carless
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We've fixed the misplaced comma on Superman pinball sales, thanks Jason.

shayne johnson
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Atari was not the first console to have Baseball

http://img409.imageshack.us/img409/7749/fairchildchannelfcartrihz0.jpg

Channel F's Videocart 12 was baseball, released in 1977.

Steve Fulton
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Shayne,

Good catch, but I believe it says that it was the first "single player" baseball game. I believe the Fairchild game (which I played many times at my friend's house BTW...but my favorite game was Alien Invasion) required two-players. I was trying to highlight the A.I. of the VCS game.

-Steve

Tomasz Primke
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Hello,

We'd like to translate a decent articles "The History of Atari: 1971-1977" (http://www.gamasutra.com/view/feature/2000/the_history_of_atari_19711977.php?pag
e=1) and "Atari: The Golden Years -- A History, 1978-1981" (http://www.gamasutra.com/view/feature/3766/atari_the_golden_years__a_.php) into Polish language and publish it on a popular portal jakilinux.org (and/or osnews.pl). Do you mind us doing so? Obviously proper attribution would be paid to you as the author.

Please let us know what you think about such re-publication. (My e-mail address is tprimke_at_gmail_dot_com.)

Best regards,

Tomek

dz jay
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Your information regarding the Intellivision is not accurate. The Intellivision was not powered by a 10-bit processor, but by an early 16-bit processor. It did, however, performed 10-bit memory addressing, but this was due to the fact that the ROM chips it used were 10-bit. This happens to be purely an accident of history: a 16-bit microprocessor designed in an 8-bit and 10-bit world.

Moreover, it is very unlikely that the Atari 3200 was to be based on the same chipset as the Intellivision. The Intellivision was mostly a knee-jerk reaction to the Atari 2600 from Mattel, and therefore consisted of an pre-built, off-the-shelf game system created by chip maker General Instruments. In fact, it was an actual sku item on their 1978 parts catalog. It was later customized a little, mainly to allow for more ROM and custom graphic tiles, but it was generally an off-the-shelf product.

Therefore it seems unlikely that Atari would plan to replace their aging custom-designed Atari 2600 with an off-the-shelf product, whose technology, although having some more capabilities, was just as old.

-dZ.

Steve Fulton
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DZ,

Thanks for that!
I'd say that from your description, the Intellivision processor could have still been one of the chips that Bushnell had tied-up in development, especially if GI was one of the companies he used. Remember, the idea that the Intellivision was based on one of those processors did not come from myself, but from a direct quote that Bushnell gave to me in an interview. Still, it's a very gray area and this why that part of the story is painted as "not definite".

-Steve

dz jay
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Mr. Fulton,
Thanks for your response. You are right, the GI microprocessor could still have been the planned successor to the Atari 2600. However, I still think it unlikely due its many limitations (weird architecture, 10-bit memory addressing, etc.).

My point was that the only reason Mattel used it was not because it was considerably better, but because they needed a quick release, and chose the General Instrument's pre-built system in haste in order to jump into the new Video Game market.

The entire Intellivision console was indeed superior, with better graphics resolution and 3-channel DSP'ed sound (although the graphics were tile-based instead of pixel-based, limiting its practicality; not to mention the ill-conceived Disc Controller!), but its microprocessor and chip technology were the products of early 1970s technology, hardly state-of-the-art; and unlikely the first choice for a successor.

But, of course, we can't ever know, and I do concede it's possible.

I do agree that competition from Mattel could have been avoided if only Atari had adhered to Bushnell's strategy.

All in all, a very interesting and satisfying article; one that brought back wonderful memories. Please keep up with the thoughtful historical accounts of our wonderful technological roots.

Thank you,
-dZ.

P.S. Why, yes, I did (and currently) own a Mattel Intellivision, thank you.

dz jay
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P.P.S. My intention in the last comment was not to refute your assertions; I find your article very well written and accurate, and I enjoyed it immensely. I just wanted to enrich your historical account with further information from one of the little remembered competitors of the time.

Perhaps Gamasutra can showcase the Mattel Intellivision on a future article and fulfill my well of nostalgia, as it has already done with the Atari VCS, the Commodore 64, and Video Game arcades in general.

-dZ.

Mason Mccuskey
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Steve - great article, I especially like all the quotes. Thank you for going into detail, and including quotes from so many insiders.

Steve Fulton
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DZ,

No problem! Thanks for adding to the discussion. I agree, the Intellivision story needs to be told. I'd love to try to tackle it someday, especially since it all went down near my home town (they used to frequent the local arcade here while making games), Keith Robinson from the Blue Sky Rangers draws a cartoon for the local paper, and Intellivision Productions is in the same office building as my favorite Sunday breakfast coffee shop)...plus, I currently work for Mattel.

mason,

I'm happy you noticed. The quotes, to me, are the most important part.

Ryan Ponce
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Although my first system was the Coleco Telstar Arcade. (Google it) Which had a drag racing game. Shoot the moving man on the screen and Pong. On one triangle shaped cart.

It was Atari that really changed my life. Starting with COMBAT. My brother and I played that till the wee morning hours and although it was simplistic. I never had so much fun in my life. That would be followed by Space Invaders. Asteroids, Adventure, which was the first game that gave me the sense I could explore a world in a game. I liked the Sword Quest series as well.

Seeing a TV ad for Atari. Going to store and seeing the box art for each game. Buying a game and taking it home and opening it up. Taking the cart out and putting it into your Atari. That was pure bliss when I was growing up.

Atari is my childhood. I love Nintendo as well, but I'm not the Nintendo generation. I'm the Atari generation. Atari forever!

Thomas Djafari
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I can provide you more information about the Intellivision; I did a little bit of work with Keith Robinson and his office is pretty close to my place, so I can go talk to him again.
We re-developed 2-3 years ago Intellivision cartridges as Keith acquired the rights to unreleased games and wanted to release them for the retro crowd.
The carts are not simple ROMs, but use a time multiplexed bus for address and data, and the Intellivision hardware is definitely odd...
We've also re-developed a 2600 clone, for a product that hasn't been released (distributor problem), so I can answer a lot of questions about the 2600 hardware and some of its history if you want to do a followup.
you can contact me at: my first name that you can see on this post @ retrogamesllc.com

Steve Fulton
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>>Seeing a TV ad for Atari. Going to store and seeing the
>>box art for each game. Buying a game and taking it home
>>and opening it up. Taking the cart out and putting it into
>>your Atari. That was pure bliss when I was growing up.

Ryan,

That is exactly what I can't shake Atari from my mind. Somehow i want to recreate those moments, but it is very difficult these days.

-Steve

A D
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I have to know, is it possible to begin another era of amazing gaming with a similar gaming box? Are these "xbox" and ps/3 - whatever-s REALLY that good? I, too, cant shake Atari. The late 70s and early 80's were golden years for me with that stuff. I had a bedtime, back then, but in front of that Atari 800 I was developing games. Amazing.

Scott Stilphen
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Nice article, although one error I noticed is Lookahead was by Dave Johnson (not Bob Johnson).


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