alternatehistory.com

The fallout of the shakeup of the video game industry in 1983 was relatively mild, even considering how badly the industry stumbled during this period. Yes, many game development firms suddenly found themselves bleeding both buyers and revenue, and newcomer Coleco soon found themselves at the mercy of the fickle consumer base. But most of those game developers deserved to fail, with their lack of key details like quality control, planning, and even originality. As for Coleco, while the ColecoVision was an impressive machine, the company itself was not ready for primetime and good hardware found itself buried under bad management and a lack of a built up library as compared to the competing Advanced Video Computer System and IntelliVision.

But the two stalwarts of the home game console market - Atari and Mattel - managed to escape most of the devastation, thanks to solid reputations for quality that left their sales mostly untouched by the consumer revolt in the rest of the industry. For both, 1983 saw the unveiling of their new systems - for Atari, the Pro Video Computer System; for Mattel, the IntelliVision II - and preparation for the upcoming battle for the American dollar in 1984.

Which, as it turned out, was good - as the field was about to get significantly more crowded...
- David Sheff, New Challenger Appears: The Battle Between East And West For The American Video Game Consumer In The Eighties

Development of what would be known as the Video Computer System (VCS) began at Atari in 1973, but it was not until the release of the famous MOS Technologies 6507 in 1975 that the system would take shape into what we know as the VCS now. Built around a core triad of chips - the 6507 as the CPU, its sister 6532 chip to control memory access and player input, and the Atari developed Television Interface Adapter to manage audio and video output - the finalized design was ready for shelves in 1976. However, while hardware was not an issue, software was - much of the first generation of consoles consisted of purpose built Pong clones, which had, by 1976, led to a complete burnout on Pong by the American consumer - there was no way they were going to buy Pong again. Warner Communications, which had invested $28M into the development of the VCS, began to worry about the viability of the system. Atari head Nolan Bushnell decided to take a gamble - he shelved the Video Olympics game cartridge (it would later be issued in late 1978, after the console's success was affirmed), and pushed up the several sports titles in development. Advertising for the VCS illustrated that the system was able to play more than Pong, which excited a gaming audience eager for new experiences. As such, Bushnell's move was a success, and the VCS, despite (or perhaps because) of the current economic malaise, flew off the shelves when it was released in 1977, selling out both the initial domestic "Heavy Sixer" run and the second run from Hong Kong. Warner's returns on their initial investment reassured the leadership in the viability of Atari, and more importantly, established their trust in Bushnell at its helm.
Top