The system
was basically a repackaged Atari 65XE computer. With No ECI
(Extended Cartridge Interface) peripherals such hard drives and
other ECI/PBI devices could not be used. When the Keyboard (the
first and only released detachable keyboard for the 8-bit line of
computers) was not attached the system would come up with Missile
Command which was built-in. When the keyboard was attached the
system would come up with Atari BASIC and acted just like a standard
Atari 65XE.
The system was
packaged with the Console, an Atari CX-40 joystick, a Light gun and
several game cartridges. The system originally sold for $199 and
the buyer received a game system which was a computer and came
packaged with numerous software titles on Cartridges. Nintendo sued
Atari over advertising which stated that the Atari XEGS had the most
games for any game system. The lawsuit involved what Nintendo
claimed was false advertising by Atari, which at the time, did not
currently sell a disk drive for the 8-bit line of computers (Atari
was simply selling its remaining stock of Atari 1050 disk drives,
but they were not manufacturing any new disk drives at the time).
Atari quickly
produced and released the Atari XF551 disk drive which was a 360K
5.25" floppy drive system. Although packaged as a game console,
the Atari XEGS is more computer then game system and is classified
as a computer here at the Atari Museum.