Video 61

THE UNAUTHORIZED AUTOBIOGRAPHY OF AN ATARI DISTRIBUTOR Monday, September 18, 2023 Hi and welcome to Lance’s Laboratory! This is the third entry of what will be my personal blog, sharing small slices of life with you from within my Lab. For those who are new to Atari I/O let me introduce myself. My name is Lance Ringquist, I’m from Minnesota, and I am the world's oldest surviving Atari dealer. You may have heard of me before as Video 61 Atari Sales which I have consistently operated since 1983 and I have been at it now for more than 40 years! I need to update my website about my longevity. I always have so much to do. Anyway, with everything going on in the Atari world right now, I had some thoughts from these 40 something years as an Atari dealer that I wanted to share with you. I have now survived at least FOUR incarnations of “Atari”. I started as an Atari dealer in 1983 under Atari, Inc. - “Warner’s Atari.” I really didn’t know anyone there. Steve Ross, CEO of Warner Communications in 1983. Steve Ross is not often spoken of within the Atari community, but it was Steve Ross who bought Atari from Nolan Bushnell, who both hired and fired Ray Kassar, who single handedly took control of Atari in 1983 often showing up in person to run the company, who ultimately sought out Jack Tramiel with a deal to take Atari off his hands, and who orchestrated the Time-Warner merger. WARNER'S ATARI Atari dealers at the time were contacted and supported by dealer representatives who were supported by Warner Communications and would occasionally stop by the stores. I had a good one that supplied me with lots of dealer cartridges, floppy disks, and promotional materials. This is essentially the same way PlayStation, Xbox and Nintendo support their retailers today, with reps who go into the stores to update the demo games in kiosks and make sure there’s current promotional signage in the stores. They usually have goodies to give to the workers too. One day my Atari dealer rep came into my store and announced “This might be the last time I see you. A new owner is taking over… everything is up in the air, and the rumor is he does not support his operations in… let’s say… “a traditional way.” That was Jack Tramiel, later on affectionately known as “Jack". He was right. That was the last time I ever saw my friendly dealer rep, and I never heard another word from Atari until the Atari ST computer was released. Alan Alda from the popular TV show M*A*S*H* was a celebrity spokesperson for Atari Home Computers during the Warner Communications era of Atari. (1984) All high-paid celebrity endorsements were dropped when Jack Tramiel took over. One day out of the blue I received a packet along with an Atari ST with some software. Gone were the days of glossy print ads in National Geographic, and sophisticated TV commercials with Alan Alda, the popular actor who played “Hawkeye” on the top TV show M*A*S*H* and was Atari’s spokesperson. The Atari ST that I was sent came with the instructions that - as a dealer - it was up to ME to educate my customers about the new Atari ST computer line, and it was up to ME to support and sell the machine as support from Atari would be minimal. STUNNING, to say the least. This began the second incarnation of “Atari” - Atari Corporation, or Atari Corp., - “Jack’s Atari”. This was the incarnation of Atari that I was most involved in, and had a lot of day-to-day interaction with. That was sometime in 1985. JACK'S ATARI I did not hear from Atari again until 1986 or possibly 1987. It’s been so long that it’s difficult to remember the exact timeline, but around that time I received a letter from Atari Corporation with a hefty “release schedule” of games lined up for the Atari 2600, Atari 7800, and Atari XEGS. I was impressed! For nearly two years it was crickets out of Atari, and finally we were receiving real support and a commitment for new games. At the time, the only real major supporter of the Atari 2600 was Activision. It felt like they were the only kid on the block. Atari had been quiet, and most other third party publishers like Imagic, Coleco, M-Network and Parker Bros. hadn’t survived the crash. Activision was still with us though, and at Video 61 Kung-Fu Masters, Ghostbusters, and Pitfall II were serious strong sellers. Jack Tramiel with the Atari ST When I received the new release schedule from Atari, I thought “Hey, maybe the new owners figured it out!” There was still plenty of life left in Atari, even for the 2600, which I could see in my stores. To my dismay, many of Atari’s newly announced titles never came even close to being released on time, or worse - never came at all! This was very frustrating because I could see the demand for new Atari stuff and yet the Atari potential was being pissed away. There’s this common belief that “The Atari 7800 was released in 1986.” That’s not really true. I had received a few 7800s from Warner’s Atari Inc. in 1984, and they sold quickly. This was in Minnesota, not California or New York City. I never got a thing from Atari again until 1986. So as Nintendo took America by storm with Mario, Zelda and Metroid on the NES, and with Atari being run so poorly, I thought the jig was up. "When I received the new release schedule from Atari, I thought 'Hey, maybe the new owners figured it out!' There was still plenty of life left in Atari, even for the 2600 which I could see in my stores. To my dismay, many of Atari's newly announced titles never came even close to being released on time, or worse - never came at all." - Lance Then came the fury. After defaulting on their release schedule and missing any new releases at all one Christmas season in 1988, I was outraged. I picked up the phone and called Atari. I wasn’t just a customer, I was in business with Atari as a dealer responsible for a percentage of all Atari games sold that year. I was helping make them money. When I called Atari, I was given the run around about “how hard it was to keep these games in stock” and “how hard it was to bring out new games.” I interrupted the lady and told her what she was saying was word for word what Nintendo was saying to their distributors - she broke down and agreed that what she had been instructed to say was not really the case. Later on I came to find out about certain “business details” and “practices” that were happening under “Jack’s Atari” which made it clear to me HOW and WHY Atari had missed so many release dates, launch windows, and even lost new releases, but thats a whole other story that we will go into another time in an upcoming Blog entry. Jack's Atari: This was the incarnation of Atari that I had the most day-to-day involvement with I continued on the phone and was trying to be nice. It wasn’t this nice lady’s fault that she had been instructed to lie. So I asked what can be done. I was sent “upstairs" and told that Atari "had messed up and badly damaged the market" and had really had messed up in my region of the country, the upper midwest. Sales and support in our part of the country needed help, and I was asked by Atari Corp. to become a service department and distributor for Atari. I was stunned. I dealt with other Atari dealers, but it was mostly to buy or trade what was needed. I said yes. I was blown away later on when I found out how just badly Atari had shrunk. They had lost almost 90% of their workforce. Yet the "Atari" brand still commanded household name recognition and selling power, which they underutilized thanks to certain business ideologies and practices from the Tramiel family. Here is a link to my Atari distribution paperwork, which is hosted on my website: http://www.atarisales.com/dis.html I became really enmeshed in this as Atari sent me to deal directly with third parties, who I then bought from as what’s known as “direct". During this time I got to know many good people in third party companies like Activision, Avalon Hill, S.S.I., Datasoft, Eypx, Sierra Online, Microprose and more. As an Atari distributer I purchased immense amounts - truckloads - of games and software direct from Atari and all third parties at the time. When Atari pulled the plug, I had about 250,000 pieces of software in my warehouse. Today it’s dwindled to under 40,000 pieces left. Jack Tramiel's son Sam Tramiel took over leadership of Atari in the mid-'90s with Jack's continued close involvement. Was the Atari ST named after Sam Tramiel? Was TOS the "Tramiel Operating System?" Jack Tramiel and wife Helen in their retirement years Jack Tramiel traveling the world HASBRO'S ATARI After Jack Tramiel pulled the plug on Lynx, Jaguar and the Atari computers, I could see what he was doing. Sam wasn’t going to save the company, and J.T.S. Corporation - an Indian hard drive manufacturer founded after the Jaguar’s launch - acquired Atari though a “reverse merger”. (Was Atari, as an entire company, "laundered" through J.T.S. so it came out nice and clean to be able to sell to a potential buyer?) This lead to Atari, or what IPs and documentation was left of it, being sold to Hasbro. This became the third iteration of the of Atari that I dealt with, “Hasbro’s Atari.” When Atari was sold to Hasbro, Atari gave Hasbro a list of contacts. I was one of them. Not only for service, parts, and software, but I was also Atari Corporation’s person who interacted with movie studios and television networks. Atari no longer had the game systems, computers, many times the software and games, nor the man power to supply the entertainment industry with Atari “props” when filming a movie or tv show that was to feature Atari in it. Atari just sent them to me for systems, computers and games, and I supplied the movie studios and television networks with what was needed, under the license agreement from Atari. One day I got a call from Hasbro, and very arrogantly told me that they would do the supplying, and the legacy Atari market was really no interest of theirs. They were going to release new games for new platforms. I supplied Atari items to Columbia Pictures (now Sony) Warner’s of course, Paramount, 20th Century Fox and others. I almost got some footage into one of the Alien movies, but Fox still owed me money from Fox Sports, and they could not come to agreements with “Jack". Many TV shows had my Atari stuff in it, one name I remember was The King of Queens, there was an Atari 7800 and Video Olympics if I remember right. Atari 2600 and 5200 game cartridges on NBC's cult classic show Freaks and Geeks (2000) Later on, my contact at Paramount studios was dismayed they could no longer get legacy Atari hardware and software for their productions, and that Hasbro’s Atari would only supply them with the newest games, which in the case of the studios and networks, was not what they wanted. I apologized to her, and said my hands were tied, "I can’t do a thing." These people at Hasbro were clueless as to what they bought. They didn’t understand what Atari was, what they still had, or the potential even for legacy markets. Hasbro really messed up quickly, and quickly sold Atari off. Meanwhile - almost daily - ever since “Jack” sold off Atari, I would get calls from disgruntled stock holders, former suppliers, and people who were owed money by Atari. Some even made threats of suing me, because in their eyes, I was Atari. That lasted even into the early Infogrames days, which is what came next. FRENCH ATARI The French company Infogrames Entertainment SA acquired Atari in January, 2001 as the biggest part of their purchase of Hasbro’s software division “Hasbro Interactive”, which also included MicroProse, and Hasbro’s game.com monochrome handheld system which was a joke compared to what the Atari Lynx could do, even years later, and couldn’t compete contemporaneously against Game Boy Color. This began the fourth incarnation of Atari - “Infogrames Atari” or “French Atari” which now goes by Atari, SA. (Infogrames rebranded themselves as Atari in 2003 and began releasing games like Splashdown, Driver 2, The Matrix and Ghostbusters for modern game systems of the time.) Splashdown was one of the first new "Atari" games released by Infogrames in November, 2001 The cover art featured branding for both Atari and Infogrames Infogrames never contacted me period, until one day a fellow named “Wim” (not sure of the spelling…) gave me a call. I tried to enter him into my contacts database, he would not spell his name for me, and acted quite annoyed that he even had to speak with me. I found out that Infogrames had an operation that was local to me in Minnesota’s Twin Cities, Minneapolis / St. Paul, in a suburb named Plymouth I think. “Wim” wanted to know who I was, and he was looking for certain items. He would discuss nothing, could care less about Atari’s legacy, knew that many, many people were looking for Atari service, parts, games etc., but "Wim" was only interested in my Atari 2600 power supplies, Atari 7800 power supplies, TV switch boxes and R.F. cables. He demanded to buy them all. I said no. “What about my customers?” I retorted … let alone the legacy Atari systems that found their way to me. "Wim" had no interest in the Atari legacy, nor the history I was privy to, and had lived through much of. "Wim" only wanted to get the people off his back who were looking for those particular legacy parts. Why? I found this simply amazing. Here I was, and of course the two other legacy dealers (we’ll get into that in a minute) who could step in and help Atari’s legacy customers, and help guide Infogrames in making decisions around the needs and potential of the legacy market. I thought to myself "Here we go again!” Never interacted with them directly again, only indirectly when I was contacted by a debt collector wanting to know “what happened to Atari" as they were owed money. Something I have heard about many times before before, and I thought “Man, will this ever end?” I told the collector Atari was now located in New York, last time I heard. As it turned out the collector ended up being an old friend from high school that I hadn’t seen in decades.. small world indeed! "'Wim' wanted to know who I was, and he was looking for certain items. He would discuss nothing, could care less about Atari's legacy, knew that many, many people were looking for Atari service, parts, games, etc. but Wim was only interested in my Atari power supplies, switch boxes and R.F. cables... Why?" - Lance Here we are, now well over 20 years since Infogrames acquired Atari and has become the longest owner of the name, with new products being developed - finally - around Atari’s greatest strengths - it’s legacy. So that's the history of my involvement with the many evolving incarnations of Atari. The history in my eyes that counts the most, was the "Jack" era. The stories, what happened within those walls, what they pulled off and what they got away with - it’s almost too amazing to be true. When "Jack" merged with J.T.S., the government would only allow the "reverse merger" to proceed if Atari kept the American market supported. That was ignored entirely, and Atari was sold to Hasbro. The other two legacy dealers are Bruce at B&C Computervisions who started in 1984, and Brad at Best Electronics who started in 1985. I was introduced to both of them by Atari Corp. Together, the three of us became heavily involved day to day under “Jack's" Atari. This is just a minor rundown in who I am in the Atari world, and I wanted to share my thoughts and experiences with you. Today, after over 40 years, I continue to march forward in the legacy Atari world, still providing sales and support, and developing new games which I hope will continue to entertain and dazzle Atari players for generations to come. What comes next? Thanks for reading, - Lance Please visit me online for more at www.atarisales.com

hi justin, i am creating another blog entry, where i will quickly touch on the launch of the atari ST. lance www.atarisales.com

hi justin, jack never understood that by 1985, the computer industry was a far different animal than in 1979. lance www.atarisales.com

hi Justin, the atari community has been pretty good to me. i try to pass along any benefits back i can. thanks again everyone!!! lance www.atarisales.com

7800 bonanza lot 12 hi everyone, we are putting up a batch of customer returns we purchased out of atari decades ago. these were returned to atari for various reasons by retailers. many times they are still new, or opened boxes, but complete. many are still shrink wrapped, but the boxes are poor, that is why many of the games were returned to atari, poor boxes, which made the games unsellable. we have perhaps thousands of these atari games left in our warehouse. but the boxes were sent to us not sorted, atari just threw them in shipping boxes and sent them. so we are not sure of how many titles of these we have, or their numbers. so we have no time to sort these boxes out, we will just put up batches for sale. so we will not mix or match or look for certain titles, because we have no time, and i feel the price is right for this batch. there are titles for Atari 2600, Atari 5200, Atari 7800, and Atari 400 / 800/ XL / XE. there maybe lynx and jaguar ones also in the future! there will be no warranty on these. this batch will be $99.95 and includes free shipping if you live in the u.s.a. this is not an auction, and we are not negotiable on the price, its firm and fair. to inquire or purchase please include where you live, and email us with your order at video61@atarisales.com, or video61atarisales@gmail.com please do not internally e-mail me from atari.io here are the titles: ATARI 7800 1-asteroids 1-choplifter 1-crossbow 1-centipede 1-donkey kong jr. 1-dig dug 1-fight night 1-food fight 1-galaga 1-joust 1-robotron 2084 1-tower toppler thanks, lance www.atarisales.com

hi everyone, this lot has been sold. thanks for everyones support. a new lot will be posted soon. lance www.atarisales.com

hi @Atari 5200 Guy the disk version has a dos window i think. the cart version has none. i was in discussion with main street, and the other one based in st. paul which i also bought out, keypunch software, to expand into the 2600, as well as expand into producing carts for the XE. keypunch did start on some projects, but went belly up. lance www.atarisales.com

hi justin, maybe☺️ lance www.atarisales.com

hi guys, more fun stiff! America's ULTRA Rare V8 Powered Super Hatchback - The AMC Gremlin 401-XR 78,066 views Aug 19, 2023 In this Rare Cars documentary, we go deep into one of the rarest and most overlook dealer built cars in American history, the AMC Gremlin 401-XR. This special V8 powered super hatchback while it was ugly was one of the fastest cars that you could purchase from 1972 to 1974, and almost nobody knows that these even existed. Learn all there is to know about the AMC Gremlin 401-XR in episode 26 of our documentary series on the world's most fascinating cars. the only gremlin i had, was the typical 6 banger three speed on the floor. lance www.atarisales.com

hi justin, i have their cart version, as well as their disk version, and the licenses to make a lot of them, more than a life times worth. the only platforms of course are atari ones. lance www.atarisales.com

hi justin, ownership of dandy went to main street dist. which also owned green valley distribution, load and go and share data. so under jack atari did what they did best, they had the original source. just update and change things a bit, and walla, dark chambers. i bought out main street distribution and still have the licenses. yes on the lynx for some reason, jack published atari game games, but not on the 2600, 7800, or XEGS. so instead we got dark chambers(dandy gauntlet), and fatal run(road blasters). lance www.atarisales.com

hi everyone, stargate was the sequel to defender, it was a warner/atari release. as you know when jack took over, licensing was a no no, they just changed the name. it was williams i think that owned the game. jacks atari had 1/3ed interest in williams and the atari coin op division. atari games released many atari brand named games on other platforms, and the lynx. for jack renaming them like fatal run, avoided royalties with the other two atari entities. lance www.atarisales.com

hi atari 5200 guy, sierra online released A-8 carts without labels, i have some somewhere. also in cart shells that were backwards when installed. i have halloweens on the 2600 that had a hand written label that was photo copied and applied to the cart shells. activision released space shuttle for the 5200 in 2600 boxes, then just put a silver sticker on the box that said 5200. later on they did not even put on the sticker. once a market shrinks, its hard to keep up the same business plan that you had when the market was booming. some can, many can't. i watched companies that thought they could, eventually alter their packaging from hard cardboard glossy type of boxes like parker bros. down to flimsy card board, the thinnest they could find, not even that helped, so under they went, or they abandon the market. lance www.atarisales.com

quantum is a cool game, I would have loved to see this game on the 7800 or atari 8 bit computers. an XE version would have been incredible and imagine if they had done a "quantum 2000" for the jaguar wow that would have sold big numbers for atari

Next time we talk about money laundering an entire company

yes! its not so much the 2600 jr. as it's the 2600 in general after Jack Tramiel relaunched the Atari systems in 1986. just like how 2600 and 5200 game boxes had identical designs but different colors in 1982, they did the same thing with the 2600 and 7800 in 1986. 7800 games came in silver boxes, and 2600 games came in red boxes. they all matched and were easy to tell the difference. here are some examples, the 2600 and 7800 boxes are the same design but different color lance www.atarisales.com

game cases make nice accessories for handhelds. Jack Tramiel cut corners wherever possible but the lynx pouch and carrying case were very high quality and most of them still hold up today at 35 years old. this looks like a nice organizer for game boy.

hi and thanks @Sabertooth that's a great great question! you just opened a pandoras box and gave me inspiration for my next two Blog posts which will answer your question in detail, and also go in to jack tramiel's sale of Atari through JTS to hasbro and how that all tied back to the Jaguar sales numbers and to what degree the Jaguar was a success or a failure. and I should warn you: my answers to this question are seen as "controversial". you might not like my answers. you might debate and disagree with my answers. you might think I'm flat-out wrong. and that's okay if you do. all I can tell you is what Jack Tramiel told me and others at Atari, and what Atari was telling me directly. I have to go by my own first hand experiences with Atari and answer as best I can, and your question is a really good one @Sabertooth and I will answer it in much more detail in my next Blog posts. for now let me answer them as directly and to the point as I can: I don't know the answer to this for sure. The faxes from Atari stopped coming in just prior to the release of Jaguar. By the time the Jag came along Atari wasn't as adamant about sharing some of this sales information, but I did get it from time to time. Atari had made $50 million in profit and it was mostly off games, they made almost no profit off hardware. I don’t know what the production/sales rule was for the Jaguar. They never told me about that. I’m pretty sure it was 100,000 units per game on the Atari Lynx, at least in 1989-1991. I remember some numbers like 45,000 units to 50,000 units on some Lynx games. But the Jaguar was a whole different story. They were very quiet about that machine. I mean VERY quiet. It was like pulling teeth getting information about it. And the reason why my own personal opinion was Jack Tramiel was getting ready to retire was that if the Jaguar didn’t go he was getting ready to pull the plug. He could’ve sold the company but if they looked into his past business practices they may have been very leery of buying the company, he may not have been able to sell it. We'll get into that theory later in another Blog. See @Sabertooth you're onto something. I don't think those sales numbers are accurate. That's not to say that you're wrong. I just don't think those sales numbers or that "150,000 Jaguars" sales figure that's been reported out there is accurate. At all. I think it's much higher than that worldwide, and I'll tell you why Yes. That's the number I have too, I think that number is probably right. Let's look at this scenario in context. When I was receiving their sales history, a game like Crystal Castles on XE would be made 100,000 at a time and sell out. These XE games were made to work on all 64k Atari computer systems, and when combined with the XEGS itself was a huge user base. In the many many many millions of systems. So Atari would release 64k Crystal Castles for The Atari 8-bit family and they sold 99,993 units of XE Crystal Castles. They had 7 left. So think of that with Alien vs. Predator, 85,000 units were sold, but on an installed user base of 150,000 consoles worldwide? That doesn't add up to me. Let's do+the=math. To get that number on Crystal Castles you’d have to have big sales on a huge installed user base. None of that ever made sense to me because A.) Atari was consistently telling me there were 2 million Jaguar units but they did not tell me if that was the United States, or Europe or worldwide, and B.) because some of the Jaguar games sold really well, and that takes a large enough user base. That’s another thing that’s wrong but I can’t refute it because I was told personally that they moved 2 million units. There were 2 million Jaguars sold. Now, I said that about the Atari Lynx and I got shot down and called a liar. I believe there were actually somewhere around 10 million Lynx units sold world wide. There was even a programmer at Atari who did a Lynx game who said that’s not true. If you go on the Atari Lynx Wikipedia page it says that there were rumors that there’re 6-8 maybe 10 million units sold worldwide. That’s what I believe to be true, because I had insider information and that's what Atari was telling me personally. I truly believe there are more Atari Jaguar units worldwide than officially documented. Certainly more than that 150,000. You see Jack would run these machines through other countries so he didn’t have to pay taxes on them. And he would say "yeah we sold 1 million units in the US" and that’s what Atari would report to the IRS and that's all they paid taxes on. Privately Atari would tell us there were more units offshore. That's how there are all these XE machines down in Mexico that are being sold on eBay and re-imported to the US. This stuff got shipped off shore pronto and then sold in other countries and that’s how Jack Tramiel evaded taxes, allegedly. That’s not what they told me, Atari told me flat out there were 2 million Jaguar systems. If you think about it 85,000 AVP that’s a lot of one title for such a small user base. Doesn’t that seem awfully odd to you? @Justin now we're getting into it arent we? They only sold worldwide 900 Fight for Lifes. The company that did Ultra Vortek was in Salt Lake City. They told me they did fairly well with that game so the sales numbers were actually pretty good! It was Fight for Life was what triggered things. After Ted Hoff was fired by Jack Tramiel Atari went 5 whole months without releasing a Jaguar game. Ted Hoff came to work in January of that year and he was locked out of the building. A lot of us who were still in the Atari business were so dismayed by this. Because there were a lot of games still in the hopper! What Ted Hoff did was reorganize the company and he paid off all the back bills, and Ted had gotten Atari quite profitable because he was keeping things on pace with a release schedule. That gave retailers confidence in the life of the system and in Atari's consistency and business practices, it helped their reputation. Ted Hoff had gotten Atari onto a regular release basis as far as games are concerned, you could see what was coming out. Jaguar was selling in Walmart at this point. They were getting 1-2 games a month on the Jaguar which was phenomenal compared to Jack Tramiel. Some of them were done real well. And even though they didn’t sell like AVP they did sell, and many of them did sell good enough. Ted Hoff had resurrected The Atari Lynx too. The Lynx games started selling again because Lynx had a huge installed user base and it never should’ve been done away with. Well once Ted Hoff was fired and kicked to the curb, I called up Atari right way because I had a feeling of what was going on, and I said are you going stick to your release schedule because it was working. I warned Atari that if they abandoned their release schedule and abandoned their dealers, the dealers would abandon Atari. This is what had happened after the crash. “Well were’ looking things over and deciding what we’re going to do” and I warned them that if they didn’t keep to the schedule they were going to loose whatever ted Hoff had built up, and I knew it was good because Atari had $50 million in the bank and there was a lot of profit. 5 months go by and no new releases from Atari. So they brought out Fight for Life and released it after 5 months had gone by without a peep from Atari to their dealers. Atari called me a few days later and they were just steaming about it and they said you were right. I got a phone call from Atari one day and they said "Lance you were absolutely right that we should have stuck to the release schedule or people would abandon us." And I said that was their past record, that Atari didn't talk to people, they didn't communicate with their dealers or with distributors or buyers for retail stores like Toys R Us, KB or Babbages, nobody had any idea what was going on, they don’t care about support, and when Atari brings stuff out a lot of times it doesn’t sell because they don’t support it. They only sold worldwide 900 Fight for Lifes. And my order was for 55 of them. Atari said I placed the largest order in the world for fight for life. Right after that they merged with JTS that hard drive maker in India. And that’s all she wrote.

thanks @Justin and yeah I want everybody to do well and the future is unknonw right now for many. its not just independent developers and homebrewers but the people in the atari community who buy these games also. its my hope this Blog post gets the word out to all atari developers that there are ways to do this and succeed and stay in the game for a long time delivering good games at good prices.

hi @Jinroh yeah! thanks and im glad you remember the days when they did that! I mean here’s my thing about packaging today: when i release a new game for an Atari system I keep prices down to make it affordable for me to make and you to buy. some new games are $50-$60 dollars if not more and not everybody can afford that. Jack Tramiel would say they make computers "for the masses, not the classes". And when I put out a game and keep the costs low, they scream about my boxes and scream about my clamshells but what about a CD rom jewel case? that thing's under a buck. It’s got a little glossy thing in it but it’s real small. Some manufacturers only have a glossy picture of the game on the front not on the back. This obsession with fancy glossy boxes and packaging, its fine and looks nice but you have to have the numbers for that, a lot of numbers sold, to keep the cost down. otherwise people are paying $50 and there's not much left for the developer to survive.

hi @RickR yeah! the cassette games were great, many times you could break into them and list out the source code and learn about them. but yeah that’s how they made a profit they didn’t have the huge numbers atari had and that’s how they remained in business. if you want to get in there and make a big library of games that give you some sort of cash flow you just have to do things like that, ziploc baggies and very inexpensive packaging is just the only way you could do it.

Hi and welcome to Lance’s Laboratory! This is the second entry of what will be my personal blog, sharing small slices of life with you from within my Lab. For those of you who are just getting to know me for the first time, my name is Lance Ringquist, I’m from Minnesota, and for nearly 40 years I’ve been in the Atari business operating Video 61, one of the last surviving original retail Atari distributors. We started in the video business as a local chain of video rental stores serving the Twin Cities area with locations along U.S. Highway 61, the road that musician Bob Dylan referred to in the album and song Highway 61 Revisited. I also love classic "Drive-In" movies and spending time with my family and friends at my cabin up north. For decades I’ve gotten to know you guys as my customers and friends, buying, selling and remanufacturing Atari systems, games, software, and computers, and developing my own line of Atari-compatible Video 61 games and controllers. I’m still in my Lab working away dreaming up new creations and shipping off new original Atari products, and I thought after all these years of being in the Atari community it was time to start sharing tidbits of Atari memories and Minnesota life with you here on my blog. To old friends and new, WELCOME! This is my first BIG Blog post, and I wanted to talk about an interesting bit of Atari history that still applies today and can be helpful to homebrewers and independent developers like me: To remain profitable if you don’t have the buying power that Atari did themselves you have to look at alternative ways of packing your products. Having been in the Atari business for decades and running Video 61 as an independent company for nearly 40 years, I began selling Atari products in my video store when Warner still ran Atari. Once Atari got back on their feet during the Tramiel era, I became an officially authorized Atari distributor and service provider. In that time I’ve seen things in the World of Atari that you couldn’t begin to imagine. I’ve had good conversations with Jack Tramiel, I’ve had inside information on the development of games and products which Atari never released, I’ve talked with other 3rd party publishers, I’ve seen absolutely insane things happen in the world of Atari - I’ve even received death threats over this stuff. I’ve survived it all and lived to tell the story. All through Atari’s history, smaller 3rd party game publishers came up with alternative methods for packing their products. Did you know it was common at the time for many 3rd Party Atari developers to release game cartridges, floppies, and other accessories in simple “budget” packaging such as clear inexpensive clamshell cases and plastic baggies? Some publishers even just shrink-wrapped the floppy disk and documents! (Examples are shown below, and in my Atari I/O photo gallery). Unique, alternative packaging kept costs low for the buyer, while keeping the games profitable enough for the small developers to stay in business and continue publishing Atari games and software. The way to get the costs down is to make things in quantity. It's the same idea as shopping at Sam's Club or Costco: the more you buy the less it cost per item. Retail boxes, glossy cartridge labels and colorful instruction manuals cost much less per game when you’re manufacturing 100,000 of them at a time, as Jack Tramiel's Atari did. BUT - when you’re making 10 to 20 games at a time as an independent developer, glossy packaging drives the price up significantly. The developer pays more and you pay more. This is one reason why you see the new Atari charging upwards of $99 per Atari XP 2600 cartridge, and why many new homebrew and independently released cartridges cost so much to buy while the developer makes such little profit on their work. When Atari was still in business, during the Tramiel era, Atari would regularly provide me with inside information and Atari’s sales history. Beginning in 1985, Atari would fax me their sales history numbers for video game hardware and software and continued to do so until around 1990. These faxes were HUGE. I still have them after all these years, although the faxes are now yellowed and almost impossible to read. "Like Jack Tramiel, independent Atari game developers and homebrewers have to weigh costs and pricing, and understand that some games sell well, some so so, and some hardly at all." - Lance The sales figures provided in the fax covered the product lines for Atari 2600, Atari 7800, Atari XEGS, and I think the Atari Lynx. For each Atari game, I was able to clearly see how many were manufactured and how many were sold. This gave me a big picture understanding of what things looked like at Atari, and just how big of a slice of the video game market Atari still had going into the 1990s. People have no idea just how big a piece of the video game industry Atari still had in the late 1980s, in the midst of Nintendo dominating the market and Sega making moves. It was still a big slice of the pie, and certainly enough to make money. Between the Atari 2600, Atari 7800, Atari XE and everything else, Atari often had a bigger chuck of the video game market than Sega did with the Sega Master System. Jack Tramiel discussing "Business is War" at Commodore and Atari What I learned from the insider info on Atari sales figures, and through my conversations with Jack Tramiel, was that Atari had a very lean business model that “spread risk” over many games, and to publish a game with a fancy box, slick labels and docs, Atari had to order 100,000 units of a game to get good enough pricing to make a profit on a title. But there was a problem. Not all titles sold well! Jack Tramiel wanted to get pricing down low enough for each game, so that in case one game did not sell very well, the risk would be spread around different games, so that the successful games would more than make up for any financial loss from games that did not sell. Like Jack Tramiel, independent Atari game developers and homebrewers (both then and now) have to weigh costs and pricing, and understand that some games sell well, some so so, and some hardly at all. So you need to spread the risks out to make a profit. Do you grasp that concept? Your winners cover your losses. So for Atari to be profitable with the XEGS, which used very good packaging in the iconic “blue tile” boxes, and to cover the cost of materials and the cartridge itself, Atari put out around 30-35 new titles for the XE. That meant to get good pricing, spread risk, and make a profit, Atari had to order over 3 million+ units of video game cartridges for the XEGS. Take for example Necromancer, a video game for the Atari XEGS. Atari manufactured a standard order of 100,000 units of Necromancer, and ended up with around 50,000 units left because the game didn’t sell very well. On the other hand, Atari XE games like Crystal Castles, Airball and others were almost completely sold out. The idea was to spread risk - to create different games for different genres. Don’t put all of your eggs in one basket, instead spread them around! If you create too much of the same thing - the same world, the same ideas, the same game - it may sell out or it may flop. Infinite diversity in games leads to infinite success. This is one reason why you see some independent developers and homebrewers struggling. Some of them focus all of their time and attention, years even, developing a single game, a passion project. Often it will come in an expensive box with glossy label and colorful instructions, all put together by hand. Other developers work on multiple games at once, and work hard to keep manufacturing costs down, and passing those savings on to both the customer and to themselves. Say what you will about Jack Tramiel, but he understood this simple concept. Atari would release a few games at a time, each in a batch of 100,000, and the successful games would cover any shortfall of the less successful games. Atari would order 100,000 games at a time - enough to keep the manufacturing cost low on slick docs, a nice box with that beautiful Atari XE blue box artwork, and a glossy label, which was something the Atari 7800 didn’t always benefit from. If the game sold well, another order of 100,000 games could be manufactured, should Atari believe there was enough excitement about the game to sell out a second batch. A similar story was unfolding at Activision in the late 1980s. After the video game crash Activision was a much different company than it had been during the Atari 2600 boom, when Activision saw incredible success with games like Pitfall! and River Raid. Yet they survived the crash and lived to fight another day. Now Microsoft is buying them. By the time Jack Tramiel was running Atari, Activision (and their sister company Absolute) was a much leaner operation. I used to speak with the Activision guys often, and developed a pretty clear understanding of their sales history numbers for Atari systems, and how they ran their business. Activision was smaller, and did their ordering 10,000 games at a time. To make a good enough profit, Activision and Absolute needed to sell all 10,000 units to justify a reorder of the game. The first order of 10,000 games sold would break even, and Activision/Absolute would recoup all of their money put into the development and manufacturing of the game. Then, if the game was successful, Activision would order another 10,000 units and suddenly that game would become pretty profitable! However, they told me that only one of their Atari games was able to surpass 10,000 units, which was Title Match Pro Wrestling, and that was a reason why they pulled out of the Atari market. Yet Jack Tramiel was able to sell out quite a few of their video game titles at 100,000. Even with games at the end like Alien Brigade for the Atari 7800, they were able to sell all 100,000 out, and this was with Jack not only not supporting the system properly, but competing against himself with the Atari XE. There was a reason why so many 3rd party Atari developers released games in alternative “budget” packaging like clamshells, zip lock baggies, and even just shrink wrapped the disk and docs without a box. Because if you cannot attain the high number of sales per unit as Atari still could, you could not get the price per cartridge down low enough to be profitable. This meant finding creative ways to cut back on packaging, and just about every 3rd party company did just that. Broderbund, Adventure International, Epyx, Sierra Online, Datasoft, S.S.I., as well as many others sold games with limited “budget” packaging. Those 3rd parties made up sales volume with budget packaging, cartridge labels and instructions, because they did not have the customer base Atari still did at that point. The new Atari charges a lot for their line of limited run "Atari XP" games for the 2600, many of them are priced at $99. I’m betting its because they use fancy boxes, instructions and "labels". But they do not have the same Atari market that Jack had in the 1980s-1990s, thus much smaller sales volumes and the inability to order a large enough quantity to bring the price down. The Atari XP program harkens back to APX: The Atari Program Exchange and is meant as a gift to the Atari community, and not focused solely on being a profitable, but it's not likely that Atari wants to lose money either. So when it comes to passion projects like the “Atari XP” games, the new Atari has to cover their costs and hope for a profit. To do this they have to charge a lot more for their games due to much smaller sales volumes. That’s a pretty big risk for the new Atari, and a pretty big expense that gets passed onto you, the customer. In the 1990s, some classic video game collectors called me a liar for pointing this out, and insisted that game companies like S.S.I., Epyx, Sierra Online, Datasoft, and many other well known (and not so well known) companies never offered their games in clamshells, zip lock baggies, and other forms of budget packaging to be able to offer their software at prices people could afford. In this blog post you will see lots of pictures I recently took of my own inventory, showing just that: actual software releases from said companies and more, in alternative budget packaging. I’ve never received an apology from those who were so quick to berate me and call me a liar for being so kind as to explain the truth. Today is their chance. - Lance SEE MORE PHOTOS IN MY PHOTO ALBUM: