History
Under the auspices of Jack Tramiel, Atari re-released two game consoles in 1986: the Atari 7800, which had previously been released in a brief test run in 1984; and the Atari 2600jr, an updated version of the Atari VCS/2600. The XEGS followed, building on Atari's 8-bit computer line which had started with the Atari 400 and 800. In practice the XEGS is essentially a repackaged Atari 65XE, in a move not unlike that taken for the Atari 5200, which is effectively a repackaged Atari 400 computer. However, unlike the 5200, the XEGS is still compatible with the existing range of Atari 8-bit computer software and peripherals, and thus could function as a home computer.
The console was conceived in an attempt to increase Atari's console market share while improve flagging sales of the Atari 8-bit family. Providing a "beginning computer" and "sophisticated game console" in one device that would convince more retailers and software developers to support the platform. In May 1987, Atari's then Director of Communications, Neil Harris, updated the online Atari community by outlining this plan, noting that the XEGS was intended to further the 8-bit line by providing mass-merchants with a device that was more appealing to their markets.
The console was not a success. Unusually, the system co-existed with the Atari 2600jr and Atari 7800 on store shelves and was occasionally featured alongside those systems in Atari print ads and television commercials. It was eventually followed by the Atari Lynx handheld system and the Atari Jaguar.
Read more about this topic: Atari XEGS
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