Atari is known for a lot of video game consoles over the years, none of which were as successful as their first, the Atari Video Computer System (known as the VCS and later the 2600).
But their 2nd-most popular console was the Atari 7800, an odd system with an odder history. Goto 10: The Newsletter for Atari Enthusiasts digs into the history.
After the 5200 flopped in 1982, Atari realized they did not have anything to replace the 2600 and compete with the ColecoVision and other newer consoles.
In 1983 Atari began talks with Nintendo to sell its Famicom system in the US with a new design and under the Atari name. That deal fell through for a variety of reasons and Atari was again left with no new console to sell.
Rather than create something in-house, they decided to contract with GCC (General Computer Corporation) to create a new console.
Announced in May 1984 as the Atari 7800 ProSystem (originally it was called the 3600, but I suspect the number was changed so that it was higher than the 5200 SuperSystem), it quickly disappeared when, just a month later, Jack Tramiel acquired Atari and its assets. The 7800 was shelved so that Atari could focus on selling its older products to raise cash to keep Atari afloat as it worked on its new ST computer. There was also a dispute between the new Atari and Warner as to who owed money to GCC for 7800.
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