Warner understood entertainment. However they pushed that mandate too sternly at Atari, everything had to be entertainment based. This is why the computer systems were held down and stifled. Everytime R&D came with a new system or idea that would make the computers more in line with business class systems, it was shot down as not being in line with an entertainment based company.
The other side was, that since Warner would not allow Atari to advance its systems in major ways, they continually mandated cost reductions to the designs, so engineering was in a perpetual loop of burning immense amounts of resources to find ways to take the same 1977 VCS design and cost reduce it, the same 1979 computer design and cost reduce it. They were going after Commodore instead of shooting towards Apple and IBM -- Atari had the engineering know-how to have made far superior high end computers - they just weren't giving the ability. This lead to defections of key and vital personnel who ran off, formed Mindset, Amiga and other computer companies with next generation designs which - had Warner permitted the computer division the ability to have done these very designs in-house in the first place, Atari would've had them years earlier.
Same with the console side, cost reductions and the continued use and re-use of the same chipsets which were well past their prime. The 5200 should've come out in 1981, not in 1982 and it should've been just a repackaged 400 computer less the keyboard with different shaped and pinned carts and perhaps the use of the 2700 controllers (combo joystick/paddle, but hardwired versions. Instead, due to bitter rivalry between the computer and games divisions, the games division was forced to mutate the 400 design into what really became a nightmare with a mish-mosh memory map to make it software incompatible, a redesign the reuse of ports to make it hardware incompatible with everything from the computer side.
The computer division felt that the games division would eat into its sales - this was foolish all around. What should've happened was Atari should've discontinued the 400 all together, maintained the 800, did a different "1200" design with 80 columns and more memory and then that would've been the highend system, the 800 would've been the low end system. The "new 5200 - aka: 400 repackaged) would be an entry level "My first computer" type system - a video game console that was limited to 16k, TV only and could have a keyboard attached and maybe redid the SIO port to only accept a cassette player. That would allowed Atari to make one set of software for 2 different area's of the company, and save tons on programmer costs and time, they could've staggered releases for the 5200 and home computers and the home computers could've had better versions with the more memory that they had. Lastly, the system new 5200 system could've been marketed right off the bat as advanced video game that can be a computer and they could've included Atariwriter or Basic with the keyboard, it would've been a win-win for Atari. They just were so worried about the overlap, that they didn't think of the bigger picture and could've moved the computers upward in price and features and stayed out of the low end where the video game console were.
Curt
Rybags, on Sun May 10, 2009 6:37 AM, said:
I think the truth of the matter is Atari never understood the console market once Warner took control.
The 2600 rolled along on sheer momentum alone, really neither Warner or the Tramiels did anything worthwhile to improve it's standing.
Of the consoles that came later, the common problems were some/all of: insufficient RAM, too few release titles, poor support, poor marketing, and the number 1: Released too late.