Commodore 128 - Market Performance

Market Performance

Because the C128 would run virtually all C64 software, and because the next-generation, 32/16-bit home computers, primarily the Commodore Amiga and Atari ST, were gaining ground, relatively little software for the C128's native mode appeared (probably on the order of 100–200 commercial titles, plus the usual share of public domain and magazine type-in programs). While the C128 sold a total number of 4 million units between 1985 and 1989, its popularity paled in comparison to that of its predecessor. This has been blamed on the lack of native software and on Commodore's less-aggressive marketing, which was mostly focused on the Amiga by this time. An additional explanation may be found in the fact that the C64 sold huge numbers to people primarily interested in video games, which the more expensive C128 didn't add much value towards improving. A few Infocom text adventures took advantage of the 80 column screen and increased memory capacity, and a very few C64 games were ported to native mode like Kikstart 2 and The Last V8 from Mastertronic and Ultima V from Origin Systems, but the vast majority of games ran in 64 mode. Many C64 productivity software titles were ported to the 128, including the popular PaperClip and Paperback Writer series. This software used the extra memory, 80 column screen and large capacity disk drives to provide features that were considered essential for business use. The C128 was certainly a better business machine than the C64, but not really a better gaming machine, and people who wanted business machines bought IBM PC clones almost exclusively by the time the C128 was released. With its advanced BASIC programming language, CP/M compatibility and "user-friendly" native software packages such as Jane, Commodore attempted to create a low-end business market for the 128 similar to its strategy with the Plus/4, even branding the 128 a "Personal Computer" on the case, but this strategy was not successful in the face of contemporary low-cost IBM-compatibles like the Leading Edge Model D and Tandy 1000 that, in some cases, sold for less than a complete 128 system. There was a professional-level CAD program, Home Designer by BRiWALL, but again, most of this work was done on PCs by the 128s era. The main reason that the C128 still sold fairly well was probably that it was a much better machine for hobbyist programming than the C64.

But ultimately the C128 could not compete with the new 16/32-bit systems, which outmatched it and the rest of its 8-bit generation in nearly every aspect. When the C128(D/DCR) was discontinued in 1989, it was reported to cost nearly as much to manufacture as the Amiga 500, even though the C128D had to sell for several hundred dollars less to keep the Amiga's high-end marketing image intact.

Bil Herd has stated that the design goals of the 128 did not initially include 100% compatibility with the C64. Some form of compatibility was always intended after Herd was approached at the Plus/4's introduction by a woman who was disappointed that the educational software package she had written for the C-64 would not run on Commodore's new computer, but when Commodore's marketing department learned of this, they demanded total compatibility. Herd gave the reason for the 128's inclusion of a Z-80 processor as to ensure this "100% compatibility" claim, since supporting the 64's Z-80 cartridge would have meant the 128 supplying additional power to the cartridge port. He also stated that the VDC video chip and Z80 were sources of trouble during the machine's design. Herd added that "I only expected the C128 to be sold for about a year, we figured a couple of million would be nice and of course it wouldn’t undercut Amiga or even the C64"