Editing Atari Jaguar (section)

===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/>