The History Of Commodore - The Dominating 1980’s Computer Company

Posted on February 9, 2008
Filed Under History, Vintage Gadgets |

A Brief Look At The History Of Commodore – A 1980’s Icon

If you were into computers in the 1980’s, then the words VIC-20 and Commodore 64 bring a smile to your face. These were two of the more popular early home computers. While not holding a candle to today’s models, at the time they were incredibly exciting as well high tech. The Commodore broke onto the scene and became the hottest thing going, and then burned out almost just as quick. Let’s take a brief look at the history of Commodore.

1954
Commodore is founded in Toronto as a company that manufactures Czechoslovakian designed typewriters.

Late 1950’s
Due to the flooding of the market by cheaper Japanese-made typewriters, Commodore changes markets and starts making adding machines.

Late 1960’s
Due to Japanese manufactured adding machines being marketed at a lower price, Commodore changes products again and becomes a manufacturer of electronic calculators.

1975
Texas Instruments introduces a full line of calculators that they are able to sell for less than Commodore can make them for. Commodore buys some small computer chip suppliers and tries to enter the home computer market.

1977
Commodore introduces the PET (Personal Electronic Transactor) which becomes a popular computer in public schools but due to its poor graphics and substandard sound capabilities, the PET is not a popular home computer.

1981
Commodore introduces the VIC-20 which retails at $299 and quickly becomes the highest selling home computer to that point thanks in part to an aggressive marketing campaign featuring spokesman William Shatner.

1982
Commodore introduces the Commodore 64 which had high quality sound and graphics for the era and sold for $599, less than half the price of other 64K computers on the market at that time.

1983
Commodore initiates a computer price war and slashes the prices on both the VIC-20 and Commodore 64 in an effort to gain a bigger market share in the home computer company. By the end of the price war, Commodore had shipped nearly 22 million Commodore 64 units making it the most sold computer in history. In the process, Commodore had successfully forced Texas Instruments out of the home computer market and nearly drove Atari to bankruptcy, unfortunately Commodore had also nearly exhausted their cash on hand.

1984
Commodore founder Jack Tramiel resigned from the company to found a competing computer manufacturer. Commodore goes on to buy Amiga Corporation and begins to market the Amiga computer brand simultaneously with the Commodore 64. Amiga develops a following due in part to its exceptional graphics and sound that proves popular with early gamers and those interested in computer graphics.

1985
The Amiga 1000 hits the market with a price tag of $1295. It proves popular with the more tech friendly crowd, but does not make a large impact on the general public.

Mid-toLate 1980’s
A series of lawsuits filed agains Commodore by it’s former owner who had gone on to purchase Atari Corporation resulted in years of legal settlements, fines, and fees. By 1987, all the lawsuits had been decided or settled and Commodore was left on very shaky financial ground. Commodore released the Amiga 500 in 1987 and finally overtook Atari for good in the home computer marketplace, outselling them at a rate of 1.5 to 1.

Early 1990’s
Due to a number of factors including questionable design practices, a lack of sustained marketing presence, as well as the rise of Apple and the IBM PC (and its clones), Commodore spiraled downward into more financial trouble. Commodore eventually filed for bankruptcy in 1994 when only its UK and German divisions were left profitable.

Post-Bankruptcy
From 1995 to present day, the Commodore and the Amiga brand names which were purchased in a bankruptcy auction have changed hands numerous times with many companies trying to revive the company name. Sometimes these attempts include new computers while at other times they include a series of computer accessories and peripherals.

Commodore had been around a lot longer than most computer geeks of the time realized, but when they set their site on taking over the home computer market, nothing could stop them. They dominated the market in the 1980’s and then faded fast with the coming of the 1990’s. But the Commodore 64 left a lot of good memories to those that remember it.

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