In January 1983, Jack Tramiel, the head of Commodore, slashes the price of the Vic to $139 and the C64 to $400. Texas Instruments reacts a month later with a rebate that lowers the street price of the 99/4A to $149. Tramiel turns around and cuts the price of the Vic to under $100, forcing TI to announce a further cut in the price of the 99/4A to $100 to take effect in June. On June 10, 1983, TI announced the largest loss in their corporate history and three months later withdrew from the home computer market. Tramiel, still looking for market share, slashed the price of the C64 to $200 and virtually walked away with the holiday buying season for the second year in a row.”
Besides TI, personal-computer casualties included the Coleco Adam, the Timex-Sinclair line, and a number of other smaller players. Atari nearly went bankrupt and in 1984 was sold off by its parent company Warner Communications (now part of Time Warner). The purchaser was, ironically, Jack Tramiel, the founder of Commodore International. Commodore’s board of directors, keen on moving the company in a direction away from home computing, had forced him out. Thus, even the winner of the home computer war found it a Pyrrhic victory.