The Atari 7800 was announced on May 21st, 1984, and was planned to cost consumers $140. In the eyes of Atari management the Atari 7800 would be a return to form after the lackluster performance of the Atari 5200, as the Atari 7800 would address almost all of the shortcomings of the Atari 5200. However due to series of unfortunate events and ill-conceived business decisions the system wouldn’t launch until almost two years after its announcement. By this time Nintendo and Sega were dominating a newly rejuvenated home console market in the United States, but Atari still saw the opportunity to re-introduce the Atari name into American homes. Yet the Atari 7800 would mark a turning point for Atari as a console manufacturer as the console’s struggle to regain public popularity marked the eventual collapse of the Atari brand name and company as a whole.
In July of 1984, the home video game division of Atari was purchased by the now infamous Jack Tramiel. Although the Atari 7800 was ready to go at this point, licensing negotiations had to begin again because the Tramiels did not agree with existing licensing arrangements, as a result the release of the 7800 was delayed. It was around this time that the video game market crashed, and retailers cut orders and shipments for video games across the board. As a result, by the end of 1984 the industry was left with only Atari, Coleco ( ColecoVision), and Mattel ( Intellivision) all of which decided to turn out new product for their old systems instead of developing new consoles, as such no new consoles were on the horizon for the United States. However Atari after spending the last two years working out the paperwork for the 7800s, by 1986 the 7800 was ready for release.
However, on October 15, 1985, everything changed.
Unbeknownst to Atari, a Japanese company called Nintendo decided to bring their successful Famicom console over to the United States. In their ignorance Atari management ignored the Famicom, and even skipped the chance to publish the American version of the Famicom. This mistake alone would prove to be one of the most costly mistakes ever enacted by Atari and even the video game industry.
Despite the fact that the American home console market was reeling from the video game crash of 1983, Nintendo still saw potential consumers. They were right; by 1986 the Nintendo Entertainment System had become an enormous hit with American consumers. With this in mind Tramiel and Atari continued with the release of the 7800, in hopes of reaping in the rewards of a newly awaken home console market.
At launch the 7800 had twelve titles ready to play. Also the system was completely compatible with 2600 games, a feature that the previous 5200 console lacked. The public was excited, and the 7800 was poised to take over the gaming world, but unfortunately it didn't quite happen that way.
Instead Tamriel and the rest of Atari management would make various business mistakes with the release of the system. The first of which was the fact that Atari had failed to promote and captivate developers to adopt the system and develop games for the 7800. Instead Atari would concentrate on advertising the complete backwards compatibility the 7800 had with the 2600 games instead of the 7800's own library of games. In fact only 10 games were developed and released by third party developers for the 7800 during its lifetime, 6 from Absolute Entertainment; 2 from Activision; and 2 from Froggo. This meant that the 7800 would have to rely on in-house development from Atari in order to supply games for the system. However was not enough to compete with the NES’s or even the Sega Master System’s rapidly expanding video game libraries. Also the launch for the system itself was poorly planned. Of the promised tweleves launch titles only three were actually available at the time of the system's launch. Not only that but the 7800 was poorly distributed amongst retailers making the system hard to find during its launch. As a result the 7800 was never able to recover from its rocky launch and in the end due to poorly conceived business decisions and a highly competitive console market failed to reach the market capitalization that Atari had hoped the system would obtain.
At the time of its release the 7800 was billed as a graphical powerhouse. The new custom CPU that would power the system was capable of moving 100 objects on-screen at the same time and was capable of displaying a 256 color palette. However the system suffered from poor audio quality due to the fact that the system utilized the same sound chip from the 2600.
The system is indeed compatible with almost 100% of the existing Atari 2600 game library, and all the existing 2600 controllers and peripherals are compatible as well. The 7800 was also sold with its own special Proline controllers which were meant to be an improvement over the 5200 design. The controller was a two-button controller, allowing for greater functionality than the classic one-button from the 2600 days.
Sales from the console were middling outside of the United Sates. With numerous third party developers quickly dropping support for the 7800 and gamers everywhere ignoring the console as a whole Atari pulled the plug on the 7800 by 1992 and ceased all production of the console. In the end Atari was no longer the console manufacturer that it once was, but unconvinced by their failure Atari would make one last ditch effort to regain their once dominant status in the video game console market.
* CPU: Custom 6502C
Speed: 1.79 MHz, drops to 1.19 MHz when the TIA or RIOT chips are accessed
(note: This is Atari's custom 6502 known as SALLY which can be halted to allow other devices to control the bus)
* RAM: 4 KB (2 6116 2Kx8 RAM ICs)
* ROM: built in 4 KB BIOS ROM, 48 KB Cartridge ROM space without bankswitching
* Graphics: MARIA custom graphics controller
160x240 (160x288 PAL) resolution or 320x240/288 resolution
25 color palette out of 256 colors (16 hues * 16 luma), different graphics modes restricted the number of usable colors and the number of colors per sprite
Direct Memory Access (DMA)
Graphics clock: 7.16 MHz
* I/O: Joystick and console switch IO handled byte 6532 RIOT and TIA
* Ports: 2 joystick ports, 1 cartridge port, 1 expansion connector, power in, RF output
* Sound: TIA video and sound chip, same as the 2600. Only the sound is used in 7800 games. Both video and sound are used in 2600 games.
Optional POKEY sound chip on cartridge for improved sounds.