Editing Atari (section)

===Atari Corporation (1984–1996)===
{{Main|Atari Corporation}}
[[Image:Atari 1040STf.jpg|thumb|[[Atari ST]] (1985)]]
Under Tramiel's ownership, Atari Corp. used the remaining stock of game console inventory to keep the company afloat while they finished development on a 16/32-bit computer system, the [[Atari ST]]. ("ST" stands for "sixteen/thirty-two", referring to the machines' 16-bit bus and 32-bit processor core.) In April 1985, they released an update to the 8-bit computer line, the Atari 65XE, the first in the [[Atari XE]] series. June 1985 saw the release of the Atari 130XE; Atari User Groups received early sneak-preview samples of the new Atari 520ST's, and major retailer shipments hit store shelves in September 1985 of Atari's new 32-bit [[Atari ST]] computers. In 1986, Atari launched two consoles designed under Warner&nbsp;— the Atari 2600jr and the [[Atari 7800]] console (which saw limited release in 1984). Atari rebounded, earning a $25 million profit that year.

[[File:Atari-Portfolio-Computer.jpg|thumb|[[Atari Portfolio]] (1989)]]
In 1987, Atari acquired the [[Federated Group]] for $67.3 million, securing shelf space in over 60 stores in California, Arizona, Texas and Kansas<ref>{{cite web|url=https://www.latimes.com/archives/la-xpm-1987-08-24-fi-2005-story.html |title=Atari to Acquire Federated Group for $67.3 Million : Deal Would Give Video Pioneer Access to a Retail Network |work=[[Los Angeles Times]] |date=August 25, 1987 |access-date=July 31, 2012 |url-status=live |archive-url=https://web.archive.org/web/20130402085921/http://articles.latimes.com/1987-08-24/business/fi-2005_1_atari |archive-date=April 2, 2013 }}</ref> at a time when major American electronics outlets were reluctant to carry Atari-branded computers, and two-thirds of Atari's PC production was sold in Europe.<ref name=Pollack>{{cite news|last=Pollack |first=Andrew |title=Atari to Acquire Electronics Retailer |url=https://www.nytimes.com/1987/08/25/business/atari-to-acquire-electronics-retailer.html |work=[[The New York Times]] |date=August 25, 1987 |access-date=May 14, 2014 |url-status=live |archive-url=https://web.archive.org/web/20131213084721/http://www.nytimes.com/1987/08/25/business/atari-to-acquire-electronics-retailer.html |archive-date=December 13, 2013 }}</ref> The Federated Group (not related to [[Federated Department Stores]]) was sold to [[Silo (store)|Silo]] in 1989.<ref>{{cite news|author=APPublished: November 11, 1989 |url=https://www.nytimes.com/1989/11/11/business/company-news-atari-is-selling-26-federated-stores.html |title=COMPANY NEWS; Atari Is Selling 26 Federated Stores |work=[[The New York Times]] |date=November 11, 1989 |access-date=July 31, 2012 |url-status=live |archive-url=https://web.archive.org/web/20130517223923/http://www.nytimes.com/1989/11/11/business/company-news-atari-is-selling-26-federated-stores.html |archive-date=May 17, 2013 }}</ref>

In 1988, the company unveiled the [[1040ST|1040STF]] and the Mega ST with a bit image manipulator chip, and launched its first [[Parallel computing|parallel computer]]. The [[Atari Transputer Workstation|ATW-800 Transputer]] was based on the [[Inmos]] T800 CPU, which had a 32/64-bit architecture, ran at 15 million instructions per second (MIPS) and housed a Charity videochip that supported 16 million colors. The company continued to experiment with parallel computing aiming at B2B customers and graphic designers, but the transputer line failed to achieve commercial success.

[[File:Atari-Lynx-I-Handheld.jpg|thumb|[[Atari Lynx]] (1989)]]
In 1989, Atari released the [[Atari Lynx]], the first ever handheld console with a color display and a backlit screen, to much fanfare. A shortage of parts kept the system from being released nationwide for the 1989 Christmas season, and the Lynx lost market share to Nintendo's [[Game Boy]], which, despite only having a black and white display, was cheaper, had better battery life and had much higher availability. Tramiel emphasized computers over game consoles, but Atari's proprietary computer architecture and operating system fell victim to the success of the [[Wintel]] platform while the game market revived. In 1989, Atari Corp. sued Nintendo for $250 million, alleging it had an illegal monopoly.<ref name="nintendosuit">{{Cite news
 |title=Nintendo Is Sued by Atari 
 |newspaper=[[The New York Times]] 
 |date=February 2, 1989 |url=https://www.nytimes.com/1989/02/02/business/nintendo-is-sued-by-atari.html?sq=atari+nintendo+1989&scp=3&st=cse 
 |url-status=live 
 |archive-url=https://web.archive.org/web/20081206024120/http://query.nytimes.com/gst/fullpage.html?res=950DE6DB1439F931A35751C0A96F948260&scp=3&sq=atari%20nintendo%201989&st=cse 
 |archive-date=December 6, 2008 }}</ref> Atari eventually lost the case when it was rejected by a [[United States district court|US district court]] in 1992.<ref name="nintendosuitrejected">{{Cite news
 |title=COMPANY NEWS; Nintendo Suit by Atari Is Dismissed 
 |newspaper=[[The New York Times]] 
 |date=May 16, 1992 |url=https://www.nytimes.com/1992/05/16/business/company-news-nintendo-suit-by-atari-is-dismissed.html?sq=atari+nintendo+rejected&scp=3&st=cse 
 |url-status=live 
 |archive-url=https://web.archive.org/web/20081206024212/http://query.nytimes.com/gst/fullpage.html?res=9E0CE3DD143EF935A25756C0A964958260&scp=3&sq=atari%20nintendo%20rejected&st=cse 
 |archive-date=December 6, 2008 }}</ref>

In 1991, Atari released its PCs ABC386SXII and ABC386DXII based on Intel's [[i386]] chip.<ref>{{Cite book |title=Atari 386 PC Brochure}}</ref>

[[Image:Atari-Jaguar-Console-Set.jpg|thumb|[[Atari Jaguar]] (1993)]]
In 1993, Atari positioned its [[Atari Jaguar|Jaguar]] as the only 64-bit interactive media entertainment system available, but it sold poorly. It would be the last home console to be produced by Atari and the last to be produced by an American manufacturer until [[Microsoft]]'s introduction of the [[Xbox]] in 2001.

By 1996, a series of successful lawsuits<ref name="segalawsuit">{{cite web
 |last=Atari Inc. 
 |title=DEF 14A · For 6/5/95 
 |publisher=Atari Inc. 
 |date=June 5, 1995 |url=http://www.secinfo.com/dxF7c.a9.htm 
 |access-date=May 18, 2008 |url-status=live 
 |archive-url=https://web.archive.org/web/20081206044238/http://www.secinfo.com/dxF7c.a9.htm 
 |archive-date=December 6, 2008 }}</ref> had left Atari with millions of dollars in the bank, but the failure of the Lynx and Jaguar left Atari without a product to sell. Tramiel and his family also wanted out of the business. The result was a rapid succession of changes in ownership. In July 1996, Atari merged with [[JT Storage|JTS Inc.]], a short-lived maker of hard disk drives, to form JTS Corp.<ref name="Atari-Apr-1996-10-K405">{{cite web|url=http://edgar.secdatabase.com/2393/89161896000213/filing-main.htm |title=Atari, Form 10-K405, Filing Date Apr 12, 1996 |publisher=secdatabase.com |access-date=January 18, 2013 |url-status=live |archive-url=https://web.archive.org/web/20130516121307/http://edgar.secdatabase.com/2393/89161896000213/filing-main.htm |archive-date=May 16, 2013 }}</ref><ref name="Atari-Aug-1996-8-K">{{cite web|url=http://edgar.secdatabase.com/1014/89161896001833/filing-main.htm |title=Atari, Form 8-K, Current Report, Filing Date Aug 14, 1996 |publisher=secdatabase.com |access-date=January 18, 2013 |url-status=live |archive-url=https://web.archive.org/web/20130516120000/http://edgar.secdatabase.com/1014/89161896001833/filing-main.htm |archive-date=May 16, 2013 }}</ref><ref name="jtmerger">{{cite web|url=http://contracts.onecle.com/atari/jt.mer.1996.04.08.shtml |title=Agreement and Plan of Reorganization – Atari Corp. and JT Storage Inc. – Sample Contracts and Business Forms |access-date=December 30, 2016 |url-status=live |archive-url=https://web.archive.org/web/20061209123854/http://contracts.onecle.com/atari/jt.mer.1996.04.08.shtml |archive-date=December 9, 2006 }}</ref><ref>{{cite web|title=ATARI CORPORATION AND JTS CORPORATION TO MERGE |url=http://www.atari.com/media/merger.html |website=Atari|access-date=October 28, 2014 |url-status=dead |archive-url=https://web.archive.org/web/19961029115929/http://www.atari.com/media/merger.html |archive-date=October 29, 1996 }}</ref> Atari's role in the new company largely became that of holder for the Atari properties and minor support, and consequently the name largely disappeared from the market. Video game magazines reported it as Atari exiting the video game business.<ref name=":0">{{Cite magazine |date=1996 |title=Adios, Atari |magazine=[[GamePro]] |page=20 |issue=82}}</ref>

{{Blockquote|text=The end of an era — Atari's story is one that certainly should never be forgotten by anyone who has ever enjoyed a videogame.|author=from ''Next Generation'' magazine's special report on Atari, 1996<ref name="NGen24">{{cite magazine |last=Thomas |first=Don |date=December 1996 |title=Atari's Historic Road to Nowhere |magazine=[[Next Generation (magazine)|Next Generation]] |publisher=[[Imagine Media]] |pages=97–104 |issue=24}}</ref>}}