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— CH. 1 · INTRODUCTION —

Atari 2600

~10 min read · Ch. 1 of 8
8 sections
  • The Atari 2600 arrived in stores in the autumn of 1977, and within five years, the word "Atari" had become a synonym for video games themselves in mainstream conversation. Here was a machine that sold an estimated 30 million units over its lifetime and stretched far beyond anyone's expectations of how long a piece of consumer electronics could remain relevant. The console that launched with nine games on tiny 2 KB cartridges would eventually run titles pushing 32 KB, through a trick its engineers never originally planned for. It helped create an entire industry of independent game companies, then nearly helped destroy that same industry. And it spent its final years selling through mail-order catalogues in the United Kingdom for less than 39.99 pounds, years after its American manufacturer had ceased production. How did a machine built to have a three-month shelf life end up lasting more than 14 years?

  • In September 1975, a microprocessor called the 6502 debuted at the Wescon trade show in San Francisco for a price that stunned the industry. Steve Mayer and Ron Milner, engineers at Atari's subsidiary Cyan Engineering in Grass Valley, were in the audience. They met Chuck Peddle, who led the team that created the chip, and proposed using it as the heart of a new game console. Over two days of meetings, Mayer, Milner, and MOS Technology engineers sketched out a console design together.

    The 6502 itself was still too expensive for a consumer product, so Peddle offered a cost-reduced variant, the 6507, paired with MOS's RIOT chip for input and output. Milner proved the concept was workable by implementing Tank, an arcade game from Atari's subsidiary Kee Games, on a testing computer called the JOLT. By December 1975, Atari hired Joe Decuir, a recent Berkeley graduate, to begin debugging the first prototype. That prototype gained the codename Stella after the brand printed on Decuir's bicycle.

    By March 1976, a second prototype existed, incorporating a chip called the Television Interface Adaptor, or TIA, created by Jay Miner. The TIA handled graphics and audio output to a standard television. The entire team worked under a deliberate constraint: they believed the console would sell for only two to three years before competition made it obsolete, so cost and speed of development mattered more than future-proofing. That philosophy shaped every decision, including the choice of the 6507 over the full 6502. Decuir would later argue that using the cheaper, pin-reduced 6507 instead of the 40-pin 6502 may have been a strategic error, because a wider chip could have allowed the console to evolve into a backwards-compatible computer.

  • Nolan Bushnell had founded Atari with Ted Dabney in 1972, and the company's first hit, Pong, had arrived that same year as the first successful coin-operated video game. By 1974, competition from Pong imitators and other financial missteps had created serious problems. The company recovered, but the experience made Bushnell cautious about repeating the cycle with a home console.

    The core obstacle to finishing Stella was money. Atari had been pulling in smaller investments through 1975, but nothing close to what the project required. Warner Communications entered the picture as a potential buyer, attracted by the idea that a booming video game industry could offset declining profits from its film and music divisions. During negotiations in 1976, Atari cleared its legal liabilities, including settling a patent dispute with Magnavox over inventor Ralph H. Baer's foundational patents behind the Magnavox Odyssey. By October 1976, Warner and Atari agreed to a purchase deal, and Warner provided an injection of capital that was enough to fast-track Stella into production.

    Just before those negotiations concluded, a competitor had moved. In mid-1976, Fairchild announced the Channel F, the first ROM-cartridge console, ahead of Atari's own planned announcement. A consultant named Gene Landrum, who had already advised Fairchild on the Channel F, was brought in by Bushnell to define what consumers would expect from the Atari console. Landrum's final report called for a living room aesthetic with a wood grain finish and cartridges that were, in his words, "idiot proof, child proof and effective in resisting potential static electricity problems in a living room environment." The cartridge design itself was handled by James Asher and Douglas Hardy, the latter a former Fairchild engineer who left to join Atari in 1976.

  • Atari sold between 350,000 and 400,000 VCS units during 1977, a figure the company attributed partly to the late shipping schedule and partly to consumers being unfamiliar with a console that could play many different games rather than just one. The following year was worse: only 550,000 of the 800,000 manufactured units found buyers, requiring Warner to cover the shortfall.

    The turnaround came from a single cartridge. Atari obtained a license from Taito to produce a home version of Space Invaders, a 1978 arcade hit, making it the first officially licensed arcade-to-home conversion in history. Rick Maurer handled the port. In 1980, Atari sold 1.25 million Space Invaders cartridges alongside more than a million VCS consoles, nearly doubling the installed base to over 2 million systems. That same year, Atari released Adventure, the first action-adventure video game and the title containing the first widely recognized Easter egg hidden inside a game. Space Invaders eventually totaled more than 6 million cartridges sold by 1983.

    Ports of Atari's own Asteroids and Missile Command arcade games, released in 1981, extended the momentum. The VCS version of Asteroids also introduced bank switching to the platform, a technique that let the 1981 cartridge access 8 KB of ROM by alternating between two 4 KB segments, bypassing the hardware's original 4 KB address ceiling. Later games pushed further: some Atari ports of Dig Dug and Crystal Castles used 16 KB cartridges, and Fatal Run, released in 1990, reached 32 KB, sixteen times the capacity of the console's first cartridges.

  • Activision, formed in 1979 by former Atari programmers including Crane, Whitehead, and Miller, began releasing VCS games in 1980. Atari tried to stop them that same year, accusing the founders of intellectual property infringement. The two companies settled out of court, with Activision agreeing to pay Atari a licensing fee for each game it sold. That settlement established Activision as the first third-party video game developer and created the licensing model that console manufacturers have used ever since.

    Kaboom!, released in 1981, sold at least a million copies. Pitfall!, released in 1982, sold at least four million. By 1982, sixteen companies were producing or had announced plans to produce 2600 software, including U.S. Games, Telesys, Games by Apollo, Data Age, Zimag, Mystique, and CommaVid. Mattel sold its 2600 games under the M Network brand. Third-party games accounted for half of all VCS game sales by 1982.

    Box art had become a separate creative endeavor. Atari determined that screenshots alone could not sell abstract games in retail stores and outsourced the artwork to Cliff Spohn, whose illustrations suggested dynamic movement without misrepresenting the gameplay. Spohn's approach set the house style, and assistants including Susan Jaekel, Rick Guidice, John Enright, and Steve Hendricks contributed to the library. Ralph McQuarrie, the concept artist on the Star Wars films, was commissioned to design the cover for the arcade conversion of Vanguard.

  • Pac-Man sold upwards of 7 million copies for the 2600 despite its widely noted technical and aesthetic flaws as a port of the arcade original. Over 8 million copies had been sold by 1990, making it the console's best-selling game. But its reception damaged the console's credibility. E.T. the Extra-Terrestrial followed a similar path. The game was programmed in roughly six weeks so Atari could reach the 1982 holiday shopping season. Atari manufactured an estimated four million E.T. cartridges. About 1.5 million were sold.

    In December 1982, Warner Communications revised its annual earnings forecast for shareholders, cutting an expected 50% year-to-year growth down to a projected 10-15% due to falling Atari sales. The oversaturated market, the shovelware glut, and investor flight combined into what became known as the video game crash of 1983. Many third-party developers that had formed before 1983 were shuttered. Mattel and Coleco both exited the video game market by 1985.

    In September 1983, Atari sent 14 truckloads of unsold cartridges and equipment to a landfill in the New Mexico desert. The event became an urban legend, with claims that millions of cartridges were buried. When the site was excavated in 2014, 700,000 cartridges were found, confirming accounts from former Atari executives rather than the inflated rumor. In July 1984, Warner sold most of Atari's consumer electronics and home computer assets to Jack Tramiel, the founder of Commodore International, in a deal valued at an undisclosed sum; Warner retained the arcade division, which was renamed Atari Games.

  • Nintendo's 1985 North American launch of the Nintendo Entertainment System began pulling the industry out of its collapse, and by around 1986 the market had recovered. Atari Corporation, now under Tramiel, released a redesigned, smaller 2600 that year, advertised with an explicit price point of "under 50 bucks." Television commercials promoted the message "The fun is back!" The new model, nicknamed the "2600 Jr." by fans, offered a large library of existing cartridges at a budget price, and the console continued selling into the late 1980s.

    Atari released its final batch of games in 1989-90, including Secret Quest and Fatal Run. The last Atari-licensed release was a PAL-only version of the arcade game Klax in 1990. Production of the 2600, the Atari 7800, and the Atari 8-bit computers all ended in 1992, but European sales continued for years beyond that. In 1991, 200,000 units were sold on the continent, and the console was a bestseller at Littlewoods stores in the United Kingdom. After the fall of communism in Eastern Europe, Atari attempted to sell the 2600 and 7800 in former Eastern Bloc countries, but found the market already occupied by unauthorized clones called "Rambo TV Game 2600," named after the 1982 film character, which contained up to several hundred built-in games at prices even lower than Atari could offer. The last official Western European stocks of the 2600 and 7800 were sold out by the summer or fall of 1995.

  • In 2007, the Atari 2600 was inducted into the National Toy Hall of Fame at The Strong in Rochester, New York. Two years later, IGN ranked it the number two console of all time, describing it as "the console that our entire industry is built upon." Joe Decuir credited Atari's background as an entertainment company with deep arcade experience as the reason the VCS outlasted the Fairchild Channel F.

    Jay Miner, who created the TIA chip inside the 2600, later directed the design of its successors, the CTIA and ANTIC chips, which powered the non-compatible Atari 8-bit computers released in 1979 and the Atari 5200 console. The CX40 joystick designed by James C. Asher became an industry standard, compatible with the MSX, Commodore 64, Amiga, Atari ST, and, with some limitations, the Sega Master System and Sega Genesis.

    Decades of hardware recreations followed the end of production. The Atari Flashback 2, released in 2005, used a recreated chip based on the original 2600 hardware and included 40 games with four more unlocked by cheat code. Hyperkin announced the RetroN 77 in 2017, a clone that plays original cartridges. The Atari 2600+ in 2023 is a 20%-smaller replica that also supports original 2600 and 7800 cartridges. Lego released a 2600 model set in 2022, packaged with miniature versions of Adventure, Centipede, and Asteroid alongside a minifigure in a bedroom styled after the 1980s.

Common questions

When was the Atari 2600 released and what was it originally called?

The Atari 2600 was released around September 1977 under the name Atari Video Computer System, or Atari VCS. It was renamed the Atari 2600 in November 1982, coinciding with the release of the Atari 5200, with the number derived from the manufacture part number CX2600.

What was the first killer app for the Atari 2600?

The home conversion of Taito's Space Invaders, released in 1980, was the Atari 2600's first killer application. It was the first officially licensed arcade-to-home console conversion and sold 1.25 million cartridges in its first year, eventually totaling more than 6 million copies by 1983.

How did Activision get started and what was its connection to the Atari 2600?

Activision was formed in 1979 by former Atari programmers including Crane, Whitehead, and Miller, who began developing third-party games for the VCS. Atari sued them for intellectual property infringement in 1980, but the two companies settled out of court, with Activision paying Atari a licensing fee and becoming the first officially recognized third-party video game developer.

What role did the Atari 2600 play in the video game crash of 1983?

Two Atari 2600 games were major factors in the crash: Pac-Man, a flawed port of the arcade original that nonetheless sold over 7 million copies, and E.T. the Extra-Terrestrial, programmed in roughly six weeks, of which an estimated four million cartridges were manufactured but only about 1.5 million were sold. Combined with a glut of low-quality third-party games, these releases eroded consumer confidence and triggered a collapse in the North American video game market.

How many Atari 2600 units were sold and when did production end?

An estimated 30 million Atari 2600 units were sold over the console's lifetime. Production ended in 1992, more than 14 years after the console's 1977 launch, though European sales continued and the last official Western European stocks were not cleared until the summer or fall of 1995.

What is the significance of the Atari 2600 New Mexico landfill excavation?

In September 1983, Atari sent 14 truckloads of unsold cartridges and equipment to a landfill in the New Mexico desert. The event became a widely repeated urban legend claiming millions of cartridges were buried. When the site was excavated in 2014, the actual number of cartridges found was 700,000, confirming accounts from former Atari executives rather than the exaggerated claims.

All sources

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