Editing Atari (section)

===Atari Corporation (1984–1996)===
{{Main article|Atari Corporation}}
[[Image:Atari 1040STf.jpg|left|thumb|280px|Atari ST]]

Under Tramiel's ownership, '''Atari Corp.''' used the remaining stock of game console inventory to keep the company afloat while they finished development on a 16/32-bit computer system, the [[Atari ST]]. ("ST" stands for "sixteen/thirty-two", referring to the machines' 16-bit bus and 32-bit processor core.) In April 1985, they released the first update to the 8-bit computer line&nbsp;— the Atari 65XE, the [[Atari XE]] series. June 1985 saw the release of the Atari 130XE, Atari User Groups received early sneak-preview samples of the new Atari 520ST's, and major retailer shipments hit store shelves in September 1985 of Atari's new 32-bit [[Atari ST]] computers. In 1986, Atari launched two consoles designed under Warner&nbsp;— the Atari 2600jr and the [[Atari 7800]] console (which saw limited release in 1984). Atari rebounded, earning a $25 million profit that year.

In 1987, Atari acquired Federated Group for $67.3 million, securing shelf space in over 60 stores in California, Arizona, Texas and Kansas<ref>{{cite web|url=http://articles.latimes.com/1987-08-24/business/fi-2005_1_atari |title=Atari to Acquire Federated Group for $67.3 Million : Deal Would Give Video Pioneer Access to a Retail Network - Los Angeles Times |publisher=Articles.latimes.com |date=August 25, 1987 |accessdate=July 31, 2012}}</ref> at a time when major American electronics outlets were reluctant to carry Atari-branded computers, and two-thirds of Atari's PC production was sold in Europe.<ref name=Pollack>{{cite web|last=Pollack|first=Andrew|title=Atari to Acquire Electronics Retailer|url=http://www.nytimes.com/1987/08/25/business/atari-to-acquire-electronics-retailer.html|work=New York Times|publisher=The New York Times Company|accessdate=14 May 2014}}</ref> The Federated Group (not related to [[Federated Department Stores]]) was sold to Silo in 1989.<ref>{{cite news|author=APPublished: November 11, 1989 |url=http://www.nytimes.com/1989/11/11/business/company-news-atari-is-selling-26-federated-stores.html |title=COMPANY NEWS; Atari Is Selling 26 Federated Stores - New York Times |publisher=Nytimes.com |date=November 11, 1989 |accessdate=July 31, 2012}}</ref>

In 1989, Atari released the [[Atari Lynx]], a handheld console with color graphics, to much fanfare. A shortage of parts kept the system from being released nationwide for the 1989 Christmas season, and the Lynx lost market share to Nintendo's [[Game Boy]] which, despite only having a black and white display, was cheaper, had better battery life and had much higher availability. Tramiel emphasized computers over game consoles but Atari's proprietary computer architecture and operating system fell victim to the success of the [[Wintel]] platform while the game market revived. In 1989, Atari Corp. sued Nintendo for $250 million, alleging it had an illegal monopoly.<ref name="nintendosuit">{{Cite news
 | title = Nintendo Is Sued by Atari
 | newspaper=[[New York Times]]
 | date = February 2, 1989
 | url = http://query.nytimes.com/gst/fullpage.html?res=950DE6DB1439F931A35751C0A96F948260&scp=3&sq=atari%20nintendo%201989&st=cse
 | postscript = <!--None-->}}</ref> Atari eventually lost the case when it was rejected by a [[United States district court|US district court]] in 1992.<ref name="nintendosuitrejected">{{Cite news
 | title = COMPANY NEWS; Nintendo Suit by Atari Is Dismissed
 | newspaper=[[New York Times]]
 | date = May 16, 1992
 | url = http://query.nytimes.com/gst/fullpage.html?res=9E0CE3DD143EF935A25756C0A964958260&scp=3&sq=atari%20nintendo%20rejected&st=cse
 | postscript = <!--None-->}}</ref>

In 1993, Atari positioned its [[Atari Jaguar|Jaguar]] as the only 64-bit interactive media entertainment system available, but it sold poorly. It would be the last home console to be produced by Atari and the last to be produced by an American manufacturer until [[Microsoft]]'s introduction of the [[Xbox]] in 2001.

By 1996, a series of successful lawsuits<ref name="segalawsuit">{{cite web
|last = Atari Inc.
|title = DEF 14A · For 6/5/95
|publisher=Atari Inc.
|date = June 5, 1995
|url =http://www.secinfo.com/dxF7c.a9.htm
|accessdate = May 18, 2008 }}</ref> had left Atari with millions of dollars in the bank, but the failure of the Lynx and Jaguar left Atari without a product to sell. Tramiel and his family also wanted out of the business. The result was a rapid succession of changes in ownership. In July 1996, Atari merged with [[JT Storage|JTS Inc.]], a short-lived maker of hard disk drives, to form JTS Corp.<ref name="Atari-Apr-1996-10-K405">{{cite web|url=http://edgar.secdatabase.com/2393/89161896000213/filing-main.htm |title=Atari, Form 10-K405, Filing Date Apr 12, 1996 |publisher=secdatabase.com |accessdate =January 18, 2013}}</ref><ref name="Atari-Aug-1996-8-K">{{cite web|url=http://edgar.secdatabase.com/1014/89161896001833/filing-main.htm |title=Atari, Form 8-K, Current Report, Filing Date Aug 14, 1996 |publisher=secdatabase.com |accessdate =January 18, 2013}}</ref><ref name="jtmerger">[http://contracts.onecle.com/atari/jt.mer.1996.04.08.shtml Sample Contracts - Agreement and Plan of Reorganization - Atari Corp. and JT Storage Inc. - Competitive Intelligence for Investors<!-- Bot generated title -->]</ref><ref>{{cite web|title=ATARI CORPORATION AND JTS CORPORATION TO MERGE |url=http://www.atari.com/media/merger.html |website=Atari|publisher=Atari |accessdate=28 October 2014 |deadurl=yes |archiveurl=https://web.archive.org/web/19961029115929/http://www.atari.com/media/merger.html |archivedate=October 29, 1996 }}</ref> Atari's role in the new company largely became that of holder for the Atari properties and minor support, and consequently the name largely disappeared from the market.