Stella was a Video Computer System (VCS or the 2600) that featured programmable cartridges. With an introduction price of $200 for the VCS Warner knew the VCS would not return much profit. They understood that is was the software that would make them money, so in 1977 Atari released the VCS with nine games (http://hmk.best.vwh.net/ahistory.htm).
Many things happened at Atari in 1978 including the release of Atari's first personal computers the Atari 400 and 800. That year Atari also released their first portable video game called Touch Me. Nolan Bushnell also left Atari in 1978 (http://hmk.best.vwh.net/ahistory.htm).
By 1979 and 1980 Atari had released twelve new game cartridges for the VCS. Atari's famous Space Invaders game was released in January of 1980, and was a huge hit. People would purchase the VCS just to play the game. Also in 1980 controversy arose between management and Atari's programmers. Atari's programmers felt that they deserved more appreciation for their work, so David Crane, Alan Miller, Bob Whitehead, and Larry Kaplan left Atari and formed Activision. Activision developed game cartridges for the VCS (http://hmk.best.vwh.net/ahistory.htm).
In 1982 Atari released the successor of the VCS (also called 2600), which was the 5200. The 5200 was comparable to the Atari 400 personal computer but without the keyboard. The graphics of the 5200 were identical to those of home computers, and much more advanced than the 2600. Unfortunately, the 5200 was not a very big success primarily because it was not compatible with the software of the 2600. Also in 1982 Atari released Pac-Man for its 2600 game system. The huge success of Pac-man made Atari one of the most recognizable names in the world (http://hmk.best.vwh.net/ahistory.htm).
In 1984 at the Winter Consumer Electronics Show (CES) Atari introduced its 7800 video game system that offered excellent graphics and was 100% compatible with the 2600.
