ColecoVision

Lore & Background

Coleco entered the video game market in 1976 with their Telstar consoles, but near bankruptcy from market oversaturation led them to handheld electronic games and miniaturized tabletop arcade games. By 1982, that market waned, and Coleco president Arnold Greenberg sought to produce a home video game console. Engineer Eric Bromley had drawn specifications as early as 1979 using a Texas Instruments video chip and a General Instrument audio chip, but RAM costs prevented approval. Around 1981, after reading that RAM prices had fallen, Bromley recalculated costs and within ten minutes of reporting to Greenberg the working name 'ColecoVision' was established.

Coleco approached Nintendo around 1981 for arcade game rights. Bromley met with Nintendo president Hiroshi Yamauchi, who initially offered obscure titles. After a meal, Bromley discovered an unreleased Donkey Kong cabinet and requested exclusive rights. Yamauchi offered them if Coleco could provide an upfront payment and a per-unit royalty. Greenberg agreed, but no formal contract was signed. At the Consumer Electronics Show, Bromley learned Yamauchi had apparently given the rights to Atari. With Yamauchi's daughter's help, Bromley secured a signed contract. Coleco's announcement that Donkey Kong would be bundled with the console was met with surprise and skepticism.

The ColecoVision was released in August 1982. By Christmas 1982, Coleco had sold more than 500,000 units, partly due to Donkey Kong. Sales quickly passed 1 million in early 1983. By early 1984, quarterly sales had dramatically decreased. Coleco discontinued the Adam computer expansion in January 1985 and withdrew from the video game market by mid-1985; the ColecoVision was officially discontinued by October 1985.

Reader's Guide

The ColecoVision's significance lies in its ability to deliver arcade-quality experiences at home during the second generation of consoles. Its graphics were superior to the Atari 2600 and Intellivision, and its price was comparable or lower. The bundled Donkey Kong was a major driver of early sales, with over 500,000 units sold by Christmas 1982 and over 1 million by early 1983. The console's hardware expandability was a key feature, with Expansion Module #1 allowing play of Atari 2600 cartridges, giving it the largest software library of any console of its day. This module prompted legal action from Atari, settled out of court with Coleco becoming licensed under Atari's patents. Expansion Module #3 converted the system into the Adam home computer. Approximately 136 games were published between 1982 and 1984, including Sega's Zaxxon and ports of lesser-known arcade games like Lady Bug, Cosmic Avenger, and Venture that found larger audiences on the console. The ColecoVision's main competitor was the less commercially successful Atari 5200. Total sales exceeded 2 million consoles, with modest sales continuing until discontinuation in 1985, when Coleco shifted focus to their Cabbage Patch Kids toy line after the costly failure of the Adam computer.

Did You Know?

• The ColecoVision was released in Europe by CBS Electronics as the CBS ColecoVision in July 1983.
• Expansion Module #1 was effectively a complete set of Atari 2600 electronics, making it the first Atari 2600 clone console.
• Coleco's announcement that Donkey Kong would be bundled with the console was initially met with surprise and skepticism from journalists and retailers.
• The Roller Controller trackball came packaged with the cartridge Slither and used a special power connector not compatible with Expansion Module #3.