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also did the same and reduced the Atari 800 to $400. Atari also released the 1200XL home
computer, which had 64 KB RAM, and 256 colour capability, and cost $900. Production
eventually ended for the 1200XL, mainly because of compatibility problems.
At the time, Japanese companies had been making great advances in the electronics in-
dustry, and many, such as NEC and Fujitsu were starting to overtake USA silicon companies,
such as Texas Instruments, Intel and National Semiconductor, in their product of integrated
circuits (although Intel had the x86 series of processors as their trump card). They were also
winning in producing peripherals and accessories for computer systems, such as:
Fujitsu producing the first 256 Kbit memory chips.
Sony developed a new standard for 3.5-inch floppy disks, with the Microfloppy Industry
Committee, and thus created the first double-sided, double-density, holding floppy disk
system that could store up to 1 MB. Sony was also working with Philips in creating the
CD-ROM, which was an extension of audio CD technology.
However, in computer manufacturing, Japanese companies struggled as the USA companies,
such as IBM and Apple, were setting the standards. The IBM PC was relatively easy to
clone, but the Apple computer required a license to manufacture, which, at the time, was
almost impossible to gain. Compared with many USA-based companies, the Japanese com-
panies were efficient and produced reliable electronics, but as long as they were one step
behind the US-based computer companies, they could not gain a serious share of the home
computer market. To overcome this, 14 Japanese companies and Microsoft joined an alliance
to create the MSX standard It used the Zilog Z80, TI TMS9918A video processor, General
Instruments AY-8910 sound processor, NEC cassette interface chip, Atari joystick interface,
64 KB RAM, and 32 KB ROM-based extended Microsoft BASIC. This was one of the first
attempts to standardize computer architecture, but was doomed to failure with the release of
the IBM PC, and that it was based on 8-bit technology. Several MSX computers did reach
the market, but quickly failed. It was a great idea, and one that should have worked. The key
to its failure was that there was a better, more defined standard: the IBM PC.
In a classic case of releasing the right product at the wrong time, Osborne Computer re-
leased their own portable computer. Unlike the IBM PC, or Compaq's portable, it was based
on the Z80A processor. The computer quickly failed in the market and Osborne eventually
filed for bankruptcy. Around the same time, Radio Shack also produced a non-IBM compati-
ble portable: the TRS-80 Model 100. They were also following the tried and tested technique
of improving their product line by releasing the TRS-80 Model 4. It would fail as it cost
$2000, and was non-IBM PC compatible (as it was based on the 4 MHz Zilog Z80A micro-
processor). Against the IBM PC, and the lower-end computers, such as the VIC-64 and the
Sinclair Spectrum, it was vastly overpriced.
Another casualty of the success of the IBM PC was Texas Instruments who eventually
withdrew from the personal computer market. The TI 99/1 had sold well over the years (over
1 million), but was now struggling against the new, cheaper computers.
Apple took a big gamble with the LISA 1 (local integrated software architecture) com-
puter, as it cost $50 million, and its software cost $100 million (showing that the costs of
developing hardware were reducing, while software development costs were increasing). It
was released in 1984 and was expensive ($10 000), it was underpowered, but it was the first
personal computer to have a graphical user interface (GUI). Rather than going with the 8086,
1 LISA was actually named after Steve Job's young daughter.
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