Commodore.2FAtari price war and crash History of personal computers

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in 1982, ti 99/4a , atari 400 both $349, radio shack s color computer sold @ $379, , commodore had reduced price of vic-20 $199 , commodore 64 $499. ti had forced commodore calculator market dropping price of own-brand calculators less cost of chipsets sold third parties make same design. commodore s ceo, jack tramiel, vowed not happen again, , purchased mos technology ensure supply of chips. supply guaranteed, , control on component pricing, tramiel launched war against ti after introduction of commodore 64.


now vertically integrated, commodore lowered retail price of 64 $300 @ june 1983 consumer electronics show, , stores sold little $199. @ 1 point company selling many computers rest of industry combined. commodore—which discontinued list prices—could make profit when selling 64 retail price of $200 because of vertical integration. competitors reduced prices; atari 800 s price in july $165, , time ti ready in 1983 introduce 99/2 computer—designed sell $99—the ti-99/4a sold $99 in june. 99/4a had sold $400 in fall of 1982, causing loss ti of hundreds of millions of dollars. service merchandise executive stated ve been in retailing 30 years , have never seen category of goods on self-destruct pattern . such low prices hurt home computers reputation; 1 retail executive said of 99/4a, when went $99, people started asking s wrong it? founder of compute! stated in 1986 our market dropped 300 percent growth per year 20 percent .


while tramiel s target ti, in home computer market hurt process; many companies went bankrupt or exited business. in end commodore s own finances crippled demands of financing massive building expansion needed deliver machines, , tramiel forced company.








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