Market Impact
The biggest effect of the Channel F in the market was to spur Atari into releasing and improving their next-generation console which was then in development. Then codenamed "Stella," the machine was also set to utilize cartridges; after seeing the Channel F, Atari realized they needed to release it before the market was flooded with cartridge-based machines. With cash flow dwindling as sales of their existing Pong-based systems dried up, they were forced to sell to Warner Communications to gain the capital they needed. When the Atari VCS gaming system (whose name was coined as a takeoff of the VES) was released a year later, it had considerably better graphics and sound.
Read more about this topic: Fairchild Channel F
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