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The Atari XE is an industrial redesign of the Atari 65XE home computer It was released by Atari Corp in 87 and marketed as a home video game console alongside the Nintendo Entertainment System, Sega's Master System, and Atari's own Atari 7800.

This time Atari attempted to leverage their extensive and highly-regarded 8-bit computer library. Eight years in the making, the library was chock full of quality titles. Ironically, Atari had eschewed marketing their computers as game machines in the past, insisting their systems were better suited for "practical" applications.

The XEGS was essentially an Atari XE computer in an artisitic shell. Although cartridge-based, it would support all the standard Atari computer peripherals including floppy disk drives, tape drives, and printers. Unfortunately, most of the games it could run could hardly compete with the fresh crop of titles coming out for the NES.