Editing Atari Jaguar (section)

==History==
===Development===
Atari Corporation's previous home video game console, the [[Atari 7800|7800]], was released in 1986. It was considered an "also-ran" and far behind rival Nintendo.<ref name="Atari40">{{cite book|title=Atari: From Boom to Bust and Back Again |publisher=Imagine Publishing|year=2012}}</ref> Around 1989, work began on a new console leveraging technology from [[Atari ST]] computers. It was originally named the Super XE, following the [[Atari XE Game System|XE Game System]], and eventually became the [[Atari Panther|Panther]] using either 16 or 32-bit architecture. A more advanced system [[codename]]d Jaguar also began work.<ref name="Atari40"/>

Both the Jaguar and Panther were developed by the members of [[Flare Technology]], a company formed by [[Martin Brennan (engineer)|Martin Brennan]] and [[John Mathieson (computer scientist)|John Mathieson]]. The team had claimed that they could not only make a console superior to the [[Sega Genesis|Genesis]] or the [[Super Nintendo Entertainment System|Super NES]], but they could also be cost-effective.<ref>{{Cite web |title=Atari Explorer, Z*Net, & ST Report: Atari Explorer Online: 16-Jan-95 #0401 |url=https://www.atariarchives.org/cfn/09/09/02/0453.php |access-date=June 17, 2023 |website=www.atariarchives.org |archive-date=June 17, 2023 |archive-url=https://web.archive.org/web/20230617225035/https://www.atariarchives.org/cfn/09/09/02/0453.php |url-status=live }}</ref> Atari was impressed by Flare's work on the [[Konix Multisystem]], and persuaded them to close Flare and form a new company called [[Flare Technology|Flare II]], to be funded by Atari.{{cn|date=September 2024}}

Work on the Jaguar design progressed faster than expected, so Atari canceled the Panther project in 1991<ref name="Atari40"/> to focus on the more promising Jaguar. Rumors were already circulating of a 1992 launch<ref>{{cite magazine |magazine=TheOne Magazine| title=TheOne Magazine | issue=36|date=September 1991|page=26}}</ref> and its 32-bit or even 64-bit architecture.<ref>{{cite magazine |title=The Jaguar Rules Atari's Jungle|magazine=GamePro|issue=30|date=January 1992|page=20}}</ref> By this time the Atari ST had long been surpassed in popularity by the [[Amiga]], while both Atari and [[Commodore International|Commodore]] became victims of [[Wintel]], which became the dominant computer platform.<ref name="Atari40"/> Atari's support for [[Atari 8-bit computers|legacy 8-bit products]] was canceled to fully focus on developing Jaguar,{{fact|date=April 2024}} and ST computers were canceled during the Jaguar's release in 1993.<ref name="Atari40"/>

The Jaguar was unveiled at the Summer [[Consumer Electronics Show]] in June 1993, calling it a "multi-media entertainment system".<ref>{{cite web | url=https://www.vintagecomputing.com/index.php/archives/19/atari-jaguar-press-release-1993 | title=VC&G &#124; » the First Atari Jaguar Press Release (1993) | access-date=May 24, 2023 | archive-date=May 24, 2023 | archive-url=https://web.archive.org/web/20230524114650/https://www.vintagecomputing.com/index.php/archives/19/atari-jaguar-press-release-1993 | url-status=live }}</ref><ref>{{cite news |title=COMPANY NEWS; I.B.M. TO MANUFACTURE NEW ATARI ENTERTAINMENT SYSTEM (Published 1993) |work=The New York Times |date=June 29, 1993 |archive-url=https://web.archive.org/web/20230525125430/https://www.nytimes.com/1993/06/29/business/company-news-ibm-to-manufacture-new-atari-entertainment-system.html |archive-date=May 25, 2023 |url-status=live |url=https://www.nytimes.com/1993/06/29/business/company-news-ibm-to-manufacture-new-atari-entertainment-system.html}}</ref><ref>{{cite magazine|title=Atari: From Boom to Bust and Back Again |magazine=[[Next Generation (magazine)|Next Generation]]|issue=4|publisher=[[Imagine Media]]|date=April 1995|page=39}}</ref>

===Launch===
The Jaguar was launched on November 23, 1993, at {{US$|249.99|1993|round=-2}}, under a {{US$|500 million|long=no}} manufacturing deal with [[IBM]]. The system was initially available only in the [[test market]]s of [[New York City]] and [[San Francisco]], with the slogan "Get bit by Jaguar", claiming superiority over competing 16-bit and 32-bit systems.<ref name="Boris Kretzinger">{{Cite book |last=Boris Kretzinger |url=http://archive.org/details/clipped-claws |title=Clipped Claws |date=February 22, 2023}}</ref> During this test launch, Atari sold all units hoping it would rally support for the system.<ref name="auto">blob:https://imgur.com/0b9f824b-6413-4717-9628-8220ceb02910{{dead link|date=September 2021}}</ref> A nationwide release followed six months later, in early 1994.<ref>{{cite magazine|title=Letters |magazine=[[Next Generation (magazine)|Next Generation]]|issue=4|publisher=[[Imagine Media]]|date=April 1995|page=107 |quote=The fact is that occasionally products do launch in some 'test' markets before making it national. Atari's Jaguar is a prime example (it was available in San Francisco and New York six months before anywhere else).}}</ref> The Jaguar struggled to attain a substantial user base. Atari reported shipping 17,000 units as part of the test market in 1993.<ref>Atari Corporation Annual Report, 1993. pp 14.</ref> By the end of 1994, it reported that it had sold approximately 100,000 units.<ref>Atari Corporation Annual Report. pp 11.</ref>

''[[Computer Gaming World]]'' wrote in January 1994 that the Jaguar was "a great machine in search of a developer/customer base", as Atari had to "overcome the stigma of its name (lack of marketing and customer support, as well as poor developer relations in the past)". Atari had "ventured late into third-party software support" for the Jaguar, but competing console [[3DO Interactive Multiplayer|3DO]]'s "18 month public relations blitz" resulted in "an avalanche of software support".<ref name="cgw199401">{{Cite magazine |last1=Miller |first1=Chuck |last2=Dille |first2=H. E. |last3=Wilson |first3=Johnny L. |date=January 1994 |title=Battle Of The New Machines |url=http://www.cgwmuseum.org/galleries/index.php?year=1994&pub=2&id=114 |magazine=Computer Gaming World |pages=64–76 |access-date=November 2, 2017 |archive-date=December 14, 2019 |archive-url=https://web.archive.org/web/20191214005055/http://www.cgwmuseum.org/galleries/index.php?year=1994&pub=2&id=114 |url-status=live }}</ref> The small size and poor quality of the Jaguar's game library became the most commonly cited reason for tepid adoption, because early releases like ''[[Trevor McFur in the Crescent Galaxy]]'', ''[[Raiden (video game)|Raiden]]'', and ''[[Evolution: Dino Dudes]]'' also received poor reviews, the latter two for failing to take full advantage of the Jaguar's hardware.  Jaguar did eventually earn praise with games such as ''[[Tempest 2000]]'', ''[[Doom (1993 video game)|Doom]]'', and ''[[Wolfenstein 3D]]''.<ref name="Atari Jaguar History">''[http://www.atariage.com/Jaguar/history.html Atari Jaguar History] {{Webarchive|url=https://web.archive.org/web/20160513071033/http://www.atariage.com/Jaguar/history.html |date=May 13, 2016 }}''. [[AtariAge]]. Retrieved December 9, 2008.</ref> The most successful game during the Jaguar's first year was ''[[Alien vs Predator (Atari Jaguar game)|Alien vs. Predator]]''.<ref name="ReferenceA">Atari Corporation 1994 annual report, p. 3.</ref> However, these occasional successes were seen as insufficient while the Jaguar's competitors were receiving a continual stream of critically acclaimed software; ''GamePro'' concluded its rave review of ''Alien vs. Predator'' by remarking "If Atari can turn out a dozen more games like ''AvP'', Jaguar owners could truly rest easy and enjoy their purchase."<ref name="ProReview: Alien vs. Predator">{{cite magazine|title=ProReview: Alien vs. Predator|magazine=[[GamePro]]|issue=75|publisher=[[International Data Group|IDG]]|date=December 1994|pages=180–181}}</ref>  ''[[Next Generation (magazine)|Next Generation]]'' commented that "thus far, Atari has spectacularly failed to deliver on the software side, leaving many to question the actual quality and capability of the hardware. With only one or two exceptions – ''Tempest 2000'' is cited most frequently – there have just been no truly great games for the Jaguar up to now." It further noted that though Atari is well known by older gamers, the company had much less overall [[brand recognition]] than Sega, Sony, Nintendo, or even The 3DO Company. However, they argued that with its low price point, the Jaguar might still compete if Atari could improve the software situation.<ref name=NGen12/>

===Bit count controversy===
Atari tried to downplay competing consoles by proclaiming the Jaguar was the only "64-bit" system; in its marketing in the American market the company used the tagline "''Do the math!"'', in reference to the 64 number.<ref>{{cite web | url=https://videogamecritic.com/jaguarinfo.htm | title=The Video Game Critic's Atari Jaguar System Review | access-date=May 22, 2023 | archive-date=May 15, 2023 | archive-url=https://web.archive.org/web/20230515202713/https://videogamecritic.com/jaguarinfo.htm | url-status=live }}</ref> This claim is questioned by some, because the [[Motorola 68000]] [[Central processing unit|CPU]] and the Tom and Jerry coprocessors execute 32-bit instruction sets. Atari's reasoning that the 32-bit Tom and Jerry chips work in tandem to add up to a 64-bit system was ridiculed in a mini-editorial by ''[[Electronic Gaming Monthly]]'', which commented that "If Sega did the math for the [[Sega Saturn]] the way Atari did the math for their 64-bit Jaguar system, the Sega Saturn would be a 112-bit monster of a machine."<ref>{{cite magazine|title=The Hot Number: 112|magazine=[[Electronic Gaming Monthly]]|issue=71|publisher=Sendai Publishing|date=June 1995|page=30}}</ref> ''[[Next Generation (magazine)|Next Generation]]'', in a mostly negative review of the Jaguar, maintained that it is a true 64-bit system, because the data path from the [[DRAM]] to the CPU and Tom and Jerry chips is 64 bits wide.<ref name="NGen12">{{cite magazine|title=Which Game System is the Best!?|magazine=[[Next Generation (magazine)|Next Generation]]|issue=12|publisher=[[Imagine Media]]|date=December 1995|pages=36–85}}</ref>

===Arrival of Saturn and PlayStation===
In early 1995, Atari announced that it had dropped the price of the Jaguar to {{US$|149.99|1995|round=-2}}, to be more competitive. Atari ran [[infomercial]]s with enthusiastic salesmen touting the game system for most of 1995, but did not sell the remaining stock.<ref name=NGen24>{{cite magazine|last=Thomas|first=Don |title=Atari's Historic Road to Nowhere|magazine=[[Next Generation (magazine)|Next Generation]]|issue=24 |publisher=[[Imagine Media]]|date=December 1996|pages=97–104}}</ref>

In 1995, CEO Sam Tramiel declared the Jaguar at least as powerful than the newly launched [[Sega Saturn|Saturn]], and slightly weaker than the upcoming [[PlayStation (console)|PlayStation]].<ref>{{Cite magazine|title=Atari's President Talks Back |magazine=[[Next Generation (magazine)|Next Generation]] |issue=7 |date=July 1995|pages=6–12}}</ref> ''Next Generation'' received a deluge of letters in response to Tramiel's comments, particularly his threat to bring Sony to court for [[dumping (pricing policy)|price dumping]] if the PlayStation entered the U.S. market at a retail price below $300. Many readers found this threat hollow and hypocritical, since Tramiel noted in the same interview that Atari was selling the Jaguar at a loss. The editor responded that price dumping does not have to do with a product being priced below cost, but its being priced much lower in one country than another{{mdash}}which, as Tramiel said, is illegal. Tramiel and ''Next Generation'' agreed that the PlayStation's Japanese price converts to approximately $500. His remark, that the small number of third party Jaguar games was good for Atari's profitability, angered Jaguar owners already frustrated at the small library.<ref>{{cite magazine |title=Letters|magazine=[[Next Generation (magazine)|Next Generation]]|issue=10|publisher=[[Imagine Media]]|date=October 1995|page=140}}</ref>

Atari's 1995 annual report noted: {{blockquote|Jaguar sales were substantially below Atari's expectations, and Atari's business and financial results were materially adversely affected in 1995 as Atari continued to invest heavily in Jaguar game development, entered into arrangements to publish certain licensed titles and reduced the retail price for its Jaguar console unit. Atari attributes the poor performance of Jaguar to a number of factors including (i) extensive delays in development of software for the Jaguar which resulted in reduced orders due to consumer concern as to when titles for the platform would be released and how many titles would ultimately be available, and (ii) the introduction of competing products by Sega and Sony in May 1995 and September 1995, respectively.<ref>[https://www.sec.gov/Archives/edgar/data/802019/0000891618-96-000213.txt Atari Corporation Annual Report, 1993] {{Webarchive|url=https://web.archive.org/web/20170706035949/https://www.sec.gov/Archives/edgar/data/802019/0000891618-96-000213.txt |date=July 6, 2017 }}. pp 3.</ref>}} In addition, Atari had severely limited financial resources, and so could not create the level of marketing which has historically backed successful gaming consoles.<ref name=NGen24/>

===Decline===
Figures from the [[NPD Group]] showed that at the end of year 1995, the Jaguar had statistically a share of zero percent of the "sold through" units (which are systems purchased by consumers) in the 32-bit market, which was also lower than the one percent held by its struggling rival [[3DO Interactive Multiplayer|3DO]].<ref name="3-3DO">{{cite magazine |last= |first= |date=May 1996 |title=Just who is winning the 32-bit war? |url=https://dn790006.ca.archive.org/0/items/Next-Generation-1996-05/Next%20Generation%201996-05.pdf |magazine=[[Next Generation (magazine)|Next Generation]] |publisher= |page=22 | volume=2 |issue=5 | via=[[Internet Archive]] | access-date=}}</ref>

By November 1995, mass layoffs and insider statements were fueling journalistic speculation that Atari had ceased both development and manufacturing for the Jaguar and was simply trying to sell off existing stock before exiting the video game industry.<ref name=NGen13>{{cite magazine |title=Atari Drops Jaguar?|magazine=[[Next Generation (magazine)|Next Generation]]|issue=13|publisher=[[Imagine Media]] |date=January 1996|page=21|quote=Then in November, UK newspaper ''The Sunday Times'' ... put forward that Atari plans to give up on the Jaguar in favor of PC development ... ''The Sunday Times'' article is not the only piece of speculation regarding Atari's commitment to hardware to have appeared in the media over the last two weeks.}}</ref><ref>{{cite magazine|title=Atari Teeters on Grave's Edge|magazine=[[GamePro]]|issue=91|publisher=[[International Data Group|IDG]]|date=April 1996|page=16}}</ref> Although Atari continued to deny these theories going into 1996, core Jaguar developers such as [[High Voltage Software]] and [[Beyond Games]] stated that they were no longer receiving communications from Atari regarding future Jaguar projects.<ref>{{cite magazine |title=Crumbling Atari Still Defiant |magazine=[[Next Generation (magazine)|Next Generation]]|issue=16|publisher=[[Imagine Media]]|date=April 1996|pages=16–17}}</ref>

In its [[Form 10-K405|10-K405 SEC Filing]], filed April 12, 1996,<ref name="10-K405 SEC Filing, filed by ATARI CORP on 4/12/1996"/> Atari informed stockholders that its revenues had declined by more than half, from $38.7 million in 1994 to $14.6 million in 1995, then gave them the news on the truly dire nature of the Jaguar:

{{blockquote|From the introduction of Jaguar in late 1993 through the end of 1995, Atari sold approximately 125,000 units of Jaguar. As of December 31, 1995, Atari had approximately 100,000 units of Jaguar in inventory.}}

The filing confirmed that Atari had abandoned the Jaguar in November 1995 and in the subsequent months were concerned chiefly with liquidating its inventory of Jaguar products.<ref name=":0">{{cite magazine |title=Stop Press: Ashes to Ashes... |magazine=[[Next Generation (magazine)|Next Generation]]|issue=19|publisher=[[Imagine Media]] |date=July 1996|page=17}}</ref> On April 8, 1996, Atari Corporation agreed to merge with [[JT Storage|JTS, Inc.]] in a [[reverse takeover]],<ref name="jtmerger">{{cite web | url=http://contracts.onecle.com/atari/jt.mer.1996.04.08.shtml | title=Atari and JT Storage Reorganisation Plan | publisher=One Cle | access-date=November 25, 2006| archive-url= https://web.archive.org/web/20061209123854/http://contracts.onecle.com/atari/jt.mer.1996.04.08.shtml| archive-date=December 9, 2006 | url-status=dead}}</ref> thus forming JTS Corporation. The merger was finalized on July 30.<ref>{{cite magazine |title=Video Game Timeline |magazine=[[Electronic Gaming Monthly]] |issue=102|publisher=[[Ziff Davis]]|date=January 1998 |page=137}}</ref>

After the merger, the bulk of Jaguar inventory remained unsold<ref name=NGen24/> and would be finally moved out to Tiger Software, a private [[Liquidation|liquidator]], on December 23, 1996.<ref>{{Cite web|url=https://mcurrent.name/atarihistory/jt_storage.html|title=A History of JT Storage / JTS (including the Atari division)|website=mcurrent.name|access-date=May 31, 2020|archive-date=April 27, 2021|archive-url=https://web.archive.org/web/20210427140329/https://mcurrent.name/atarihistory/jt_storage.html|url-status=live}}</ref> On March 13, 1998, JTS sold the Atari name and properties to [[Hasbro Interactive]].<ref name="ataritohasbro">{{cite web|last=Johnston|first=Chris|date=April 8, 2000|title=Atari Goes to Hasbro|url=https://www.gamespot.com/articles/atari-goes-to-hasbro/1100-2462915/|website=[[GameSpot]]|access-date=February 20, 2020|archive-date=February 4, 2021|archive-url=https://web.archive.org/web/20210204132911/https://www.gamespot.com/articles/atari-goes-to-hasbro/1100-2462915/|url-status=live}}</ref>