It got a LOT worse by 1982...
Atari brought it a big team from Control Data Corp into Atari's Home Computer Division around late 1981 and they set about taking the home computer line to just that level, but more to the extreme... to make a "Computer Appliance" A closed box, just plug it in and use it as is. They then through a division called "HAT" went to Racal Vadic and one of their first projects was to take the Atari 850 autoload design to the next level - the Atari 1030... Atari envisioned "Smart Appliance Devices" that you would just plug into your Atari computer and they would supply everything needed, the hardware and software. Just turn them on and use them. The 1030 modem was a very cool idea, its main flaw - no damned support for a disk drive (and why should there - there was no upload/download feature in the built in software) More narrowed minded thinking on a narrow minded path. Its why the 1200XL was a failure and why 3rd parties had to come to the 1030's rescue with more capable software.
It wouldn't be until spring of 84' that Atari realized it needed to empower its systems and software with more features and flexibility. The Atari 8bit world would be a much much different place today had the 1090 XL system been released for example. I know a lot like to point out - well ICD and CSS made Parallel bus products and that was it. There all in one boards didn't allow for other devices to co-exist and what was needed was a card card, and to foster 3rd parties to make add-on cards. Look at the Apple ][... the Atari 800 was far superior to it, yet it was taken as a more serious computer and more units sold of it, why - expansion - you have ram cards, 80 column card, rgb cards, printer cards, and so much more. It took a simple "box" and allowed it to grow well beyond its original design. Same with the IBM PC - it was an under powered box --- however, through in a floppy disk controller, MFM hard drive controller, Everex Multi-function card and a 3COM ethernet card and now you've got one serious machine.
This is what Atari needed - not a closed box - accept it as is and nothing more design. There in lied its biggest fault - its lack of growing outside of its off the shelve specification.
Curt

Originally Posted by
wgungfu

Originally Posted by
atarian63
Atari was offered the apple and declined as they has thier own in dev.
No, it was just that at the time it was offered (Spring '76) Atari was focused on the VCS, and a lot of the engineers (includnig Al Alcorn) didn't see it as a viable product at the time. And they were right, in '76 personal computers were still homebrew type products with a limited market (which is exactly what the Apple I was). That all changed by the time Atari released the 2600 of course, you had Apple (the Apple II), Commodore (PET), and Radio Shack (TRS-80) all enter with more consumer orientated computers and really jump start the home computer market. Hence they went right from the 2600 to the early PCS designs.
Interestingly, they originally wanted an open architecture card system ala the Apple II, but Ray wouldn't allow it. In fact he had a grand vision for a consumer driven "appliance computer" market complete with color coordinated computers ala what Jobs did with the iMac almost 20 years later.