Editing Motorola 6800 (section)

=== Design team breakup ===
The principal design effort on the M6800 family was complete in mid-1974, and many engineers left the group or the company. Several factors led to the break-up of the design group.

Motorola had opened a new MOS semiconductor facility in Austin, Texas. The entire engineering team was scheduled to relocate there in 1975.<ref name = "Electronics Nov 14 1974">{{Cite journal | title = Semiconductor makers delay expansion | journal = Electronics | volume = 47 | issue = 23 | pages =82–85 | publisher = McGraw-Hill | location = New York | date = November 14, 1974}} Motorola's Austin MOS plant already in operation. "However, engineering and marketing won't move until 1975."</ref> Many of the employees liked living in the Phoenix suburb of Mesa and were very wary about moving to Austin. The team leaders were unsuccessful with their pleas to senior management on deferring the move.<ref name="Hoefler July 1976">{{Cite journal | last = Hoefler | first = Don | title = Backfire | journal = Microelectronics News | page = 3 | location = Santa Clara, CA | date = July 3, 1976 | url = http://smithsonianchips.si.edu/schreiner/1976/h76713.htm | access-date = October 21, 2010 | archive-date = March 2, 2021 | archive-url = https://web.archive.org/web/20210302185247/http://smithsonianchips.si.edu/schreiner/1976/h76713.htm | url-status = live }}</ref>

A recession hit the semiconductor industry in mid-1974 resulting in thousands of layoffs. A November 1974 issue of ''Electronics'' magazine reports that Motorola had laid off 4,500 employees, [[Texas Instruments]] 7,000 and [[Signetics]] 4,000.<ref name = "Electronics Nov 28 1974">{{Cite journal | title = Semiconductor makers continue to trim employment | journal = Electronics | volume = 47 | issue = 24 | page =46 | publisher = McGraw-Hill | location = New York | date = November 28, 1974}}</ref> Motorola's Semiconductor Products Division would lose thirty million dollars in the next 12 months and there were rumors that the IC group would be sold off. Motorola did not sell the division but they did change the management and organization.<ref name = "Electronics Nov 13 1975">{{Cite journal | last = Waller | first = Larry | title = Motorola seeks to end skid | journal = Electronics | volume = 48 | issue = 23 | pages =96–98 | publisher = McGraw-Hill | location = New York | date = November 13, 1975}} Summary: Semiconductor Products split into two parts, integrated circuits and discrete components. Semiconductor losses for the last four quarters exceeded $30 million. The sales organization lost its sensitivity to customer needs, "delays in responding to price cuts meant that customers bought elsewhere." Technical problems plagued IC production. The troubles are "not in design, but in chip and die yields." Problems have been solved. The MC6800 microprocessor "arrived in November 1974."</ref> By the end of 1974 Intel fired almost a third of its 3,500 employees.<ref name = "Tedlow 2007">{{Cite book | last = Tedlow | first = Richard S. | title = Andy Grove: The Life and Times of an American Business Icon | publisher = Portfolio | year = 2007 | location = New York | page = 158 | url = https://books.google.com/books?id=zQamXENAalkC&pg=PA158 | isbn = 978-1-59184-182-1 | access-date = 2016-10-31 | archive-date = 2014-06-29 | archive-url = https://web.archive.org/web/20140629230355/http://books.google.com/books?id=zQamXENAalkC&pg=PA158 | url-status = live }} "By the end of the year [1974], Intel had fired fully 30 percent of its thirty-five hundred employees."</ref> The MOS IC business rebounded but job security was not taken for granted in 1974 and 1975.{{Citation needed|date=August 2021}}

Chuck Peddle (and other Motorola engineers) had been visiting customers to explain the benefits of microprocessors. Both Intel and Motorola had initially set the price of a single microprocessor at {{val|p=$|360}}. Many customers were hesitant to adopt this new microprocessor technology with such a high price tag. (The actual price for production quantities was much lower.) In mid-1974 Peddle proposed a simplified microprocessor that could be sold at a much lower price. Motorola's "total product family" strategy did not focus on the price of MPU but on reducing the customer's total design cost.<ref name = "Electronics Jan 1975">{{Cite journal | title = It's the total product family | journal = Electronics | volume = 48 | issue = 1 | page = 37 | url = http://commons.wikimedia.org/wiki/File:Motorola_6800_Total_Product_Family_1975.jpg | publisher = McGraw-Hill | location = New York | date = January 9, 1975 | access-date = June 7, 2011 | archive-date = November 11, 2012 | archive-url = https://web.archive.org/web/20121111004455/http://commons.wikimedia.org/wiki/File:Motorola_6800_Total_Product_Family_1975.jpg | url-status = live }} Motorola advertisement emphasizing their complete set of peripheral chips and development tools. This shorten the customers product design cycle.</ref><ref>Motorola 6800 Oral History (2008) p. 18</ref> Peddle's concept was repeatedly rejected, and eventually management told him to stop talking about it. He wrote a memo stating that these instructions were a clear statement that Motorola was abandoning the concept, meaning they could not claim [[intellectual property]] against it.

[[File:MOS 6501 Ad August 1975.jpg|thumb|Introductory advertisement for the MOS Technology MCS6501 microprocessor in August 1975]]

Peddle continued working for Motorola while looking for investors for his new microprocessor concept.<ref name = "Peddle investors">Bagnall (2006), "On the Edge". Page 10, "While still employed at Motorola, Peddle tried raising money to fund his new microprocessor.</ref> After approaching Mostek and being rejected, in August 1974 Chuck Peddle left Motorola and joined a small semiconductor company in Pennsylvania, MOS Technology. He was followed by seven other Motorola engineers: Harry Bawcom, Ray Hirt, Terry Holdt, Mike James, Will Mathis, Bill Mensch and Rod Orgill.<ref name = "Bagnall 2006"/> Peddle's group at MOS Technology developed two new microprocessors that were compatible with the Motorola peripheral chips like the 6820 PIA. Rod Orgill designed the MCS6501 processor that would plug into a MC6800 socket and Bill Mensch did the MCS6502 that had the clock generation circuit on chip. These microprocessors would not run 6800 programs because they had a different architecture and instruction set. The major goal was a microprocessor that would sell for under {{val|p=$|25}}.{{Citation needed|date=August 2021}} This would be done by removing non-essential features to reduce the chip size. An 8-bit stack pointer was used instead of a 16-bit one. The second accumulator was omitted. The address buffers did not have a three-state mode for Direct Memory Access (DMA) data transfers.<ref name = "Byte Nov 1975 6502">{{Cite journal | last = Fylstra | first = Daniel | author-link = Dan Fylstra | title = Son of Motorola (or the {{val|p=$|20}} CPU Chip) | journal = Byte | volume = 1 | issue = 3 | pages =56–62 | publisher = Green Publishing | location = Peterborough, NH | date = November 1975}} Comparison of the 6502 and the 6800 microprocessors. Author visited MOS Technology in August 1975.</ref> The goal was to get the chip size down to 153 mils x 168 mils ({{val|3.9|u=mm}}{{resx}}{{val|4.3|u=mm}}).<ref name = "EDN Sep 20 1975">{{Cite journal | last = Cushman | first = Robert H. | author-link = Robert H. Cushman | title = 2-1/2 Generation μP's -$10 Parts That Perform Like Low-End Mini's | journal = EDN | volume = 20 | issue = 17 | pages = 36–42 | publisher = Cahners Publishing | location = Boston | date = September 20, 1975 | url = http://www.swtpc.com/mholley/Microprocessors/EDN_Sep_20_1975_6502.pdf | access-date = September 9, 2012 | archive-url = https://web.archive.org/web/20160424050556/http://www.swtpc.com/mholley/Microprocessors/EDN_Sep_20_1975_6502.pdf | archive-date = April 24, 2016 | url-status = dead }} About the MOS Technology 6502 on page 40. "It measures just 168x183 mils now and will be shrunk 10% to 153x168 mils soon."</ref>

Peddle was a very effective spokesman and the MOS Technology microprocessors were extensively covered in the trade press. One of the earliest was a full-page story on the MCS6501 and MCS6502 microprocessors in the July 24, 1975 issue of ''Electronics'' magazine.<ref name = "Electronics July 24, 1975">{{Cite journal | title = Microprocessor line offers 4, 8, 16 bits | journal = Electronics | volume = 48 | issue = 15 | page = 118 | publisher = McGraw-Hill | location = New York | date = July 24, 1975}} The article covers the 6501 and 6502 plus the 28 pin versions that would only address 4K of memory. It also covered future devices such as "a design that Peddle calls a pseudo 16."</ref> Stories also ran in ''[[EE Times]]'' (August 24, 1975),<ref name = "6502 EE Times 1975">{{Cite journal | last = Sugarman | first = Robert | title = Does the Country Need A Good $20 Microprocessor? | journal = EE Times | page = 25 | publisher = CMP Publications | location = Manhasset, New York | date = 25 August 1975 | url = http://www.commodore.ca/gallery/magazines/misc/mos_605x_team_eetimes_august_1975.pdf | access-date = 21 October 2010 | archive-url = https://web.archive.org/web/20070203105724/http://www.commodore.ca/gallery/magazines/misc/mos_605x_team_eetimes_august_1975.pdf | archive-date = 3 February 2007 | url-status = dead }}</ref> ''EDN'' (September 20, 1975), ''Electronic News'' (November 3, 1975) and ''Byte'' (November 1975). Advertisements for the 6501 appeared in several publications the first week of August 1975. The 6501 would be for sale at the WESCON trade show in San Francisco, September 16–19, 1975, for {{val|p=$|20}} each.<ref name = "Electronics Aug 7 1975">{{Cite journal | title = MOS 6501 Microprocessor beats 'em all | journal = Electronics | volume = 48 | issue = 16 | pages =60–61 | publisher = McGraw-Hill | location = New York | date = August 7, 1975}}</ref> In September 1975 the advertisements included both the 6501 and the 6502 microprocessors. The 6502 would only cost {{val|p=$|25}}.<ref name = "6502 Computer Sep 1975">{{Cite journal | title = MOS 6502 the second of a low cost high performance microprocessor family | journal = Computer | volume = 8 | issue = 9 | pages = 38–39 | publisher = IEEE Computer Society | date = September 1975 | url = http://commons.wikimedia.org/wiki/File:MOS_6501_6502_Ad_Sept_1975.jpg | doi = 10.1109/C-M.1975.219074 | access-date = 2010-10-21 | archive-date = 2021-02-24 | archive-url = https://web.archive.org/web/20210224154043/https://commons.wikimedia.org/wiki/File:MOS_6501_6502_Ad_Sept_1975.jpg | url-status = live }}</ref>

Motorola responded to MOS Technology's {{val|p=$|20}} microprocessor by immediately reducing the single-unit price of the 6800 microprocessor from {{val|p=$|175}} to {{val|p=$|69}}<ref name = "MC6800 price reduction">{{Cite journal | last = Motorola | title = All this and unbundled {{val|p=$|69}} microprocessor | journal = Electronics | volume = 48 | issue = 22 | page = 11 | publisher = McGraw-Hill | date = October 30, 1975 | url = http://commons.wikimedia.org/wiki/File:Motorola_MC6800_microprocessor_ad_1975.jpg | access-date = October 21, 2010 | archive-date = December 15, 2011 | archive-url = https://web.archive.org/web/20111215093452/http://commons.wikimedia.org/wiki/File:Motorola_MC6800_microprocessor_ad_1975.jpg | url-status = live }} The quantity one price for the MC6800 was reduced from {{val|p=$|175}} to {{val|p=$|69}}. The previous price for 50 to 99 units was {{val|p=$|125}}.</ref> and then suing MOS Technology in November 1975.<ref name = "MD Dec 1975 6502 Law Suit">{{Cite journal | title = Motorola Sues MOS Technology | journal = Microcomputer Digest | volume = 2 | issue = 6 | page = 11 | publisher = Microcomputer Associates | location = Cupertino CA | date = December 1975 | url = http://www.bitsavers.org/pdf/microcomputerAssociates/Microcomputer_Digest_v02n06_Dec75.pdf | access-date = 2010-10-21 | archive-date = 2009-07-04 | archive-url = https://web.archive.org/web/20090704150106/http://www.bitsavers.org/pdf/microcomputerAssociates/Microcomputer_Digest_v02n06_Dec75.pdf | url-status = live }}</ref> Motorola claimed that the eight former Motorola engineers used technical information developed at Motorola in the design of the 6501 and 6502 microprocessors. MOS Technology's other business, calculator chips, was declining due to a price war with Texas Instruments so their financial backer, [[Allen-Bradley]], decided to limit the possible losses and sold the assets of MOS Technology back to the founders.<ref name = "Bagnall 2006"/><!-- On the Edge, page 31 --> The lawsuit was settled in April 1976 with MOS Technology dropping the 6501 chip that would plug into a Motorola 6800 socket and licensing Motorola's peripheral chips.<ref name = "MD May 1976 6501 dropped">{{Cite journal | title = MOS Technology Drops 6501 | journal = Microcomputer Digest | volume = 2 | issue = 11 | page = 4 | publisher = Microcomputer Associates | location = Cupertino CA | date = May 1976 | url = http://www.bitsavers.org/pdf/microcomputerAssociates/Microcomputer_Digest_v02n11_May76.pdf | access-date = 2010-10-21 | archive-date = 2011-01-08 | archive-url = https://web.archive.org/web/20110108174135/http://www.bitsavers.org/pdf/microcomputerAssociates/Microcomputer_Digest_v02n11_May76.pdf | url-status = live }}</ref><ref name = "SCCS May 1976 6501">{{Cite journal | last = Teener | first = Mike | title = Politics and Intrigue | journal = SCCS Interface | volume = 1 | issue = 6 | page =58 | publisher = Southern California Computer Society | location = Los Angeles | date = May 1976}}"So Motorola sued and just recently won an out-of-court settlement that has MOS Technology paying $200,000 and stopping production on the 6501."</ref> Motorola reduced the single-unit price of the 6800 to {{val|p=$|35}}.<ref name = "Verhofstadt 1976"/><ref name = "SCCS May 1976 6800">{{Cite journal | title = New 6800 Pricing | journal = SCCS Interface | volume = 1 | issue = 6 | page =63 | publisher = Southern California Computer Society | location = Los Angeles | date = May 1976}} The new prices for the Motorola 6800 were {{val|p=$|35}} for 1–9 units, {{val|p=$|32.50}} for 10–49 and {{val|p=$|29.25}} for 50–99.</ref>

The MOS Technology vs. Motorola lawsuit has developed a [[Goliath|David and Goliath]] narrative over the years. One point was that Motorola did not have patents on the technology. This was technically true when the lawsuit was filed in late 1975{{Citation needed|date=August 2021}} On October 30, 1974, before the 6800 was released, Motorola filed numerous patents applications on the microprocessor family, and over twenty patents were subsequently granted. The first was to Tom Bennett on June 8, 1976, for the 6800 internal address bus.<ref name ="Bennett 3962682"/> The second was to Bill Mensch on July 6, 1976, for the 6820 chip layout.<ref name ="Mensch 3968478"/> Many of these patents named several of the departing engineers as co-inventors. These patents covered the 6800 bus and how the peripheral chips interfaced with the microprocessor.<ref>Motorola was awarded the following US Patents on the 6800 microprocessor family: 3962682, 3968478, 3975712, 3979730, 3979732, 3987418, 4003028, 4004281, 4004283, 4006457, 4010448, 4016546, 4020472, 4030079, 4032896, 4037204, 4040035, 4050096, 4069510, 4071887, 4086627, 4087855, 4090236, 4106091, 4145751, 4218740, 4263650</ref>