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During the early 1980's IBM was promoting the PC Jr. computer which was radically inferior (in most ways) to the rest of the home computer systems on the market and vastly more expensive. Commodore was, therefore, really receiving more competition from the Atari 400 and 800, the Texas Instruments 99, the Radio Shack Color Computer and the Apple 2 computer. Despite the rivalry between these 8-bit manufacturers much of the credit for innovation goes to Commodore largely because Commodore consistently pushed the price down and because the Atari and Apple computers used the Commodore 6502 processor as their main microprocessing chip.

In the very early 1980's unique marketing schemes were developed by different firms trying to cash-in on the developing computer craze. The fascination that many people had begun to experience with the fledgling computer video game, educational, business, and word processing capabilities of these computers quickly led to various multi-level marketing groups trying to involve people in selling these machines. There were few computer stores at the time and most of them were small. Computers were somewhat of an uncertain novelty item which many of the larger electronics and department stores were a little slow to embrace because of the uncertainty and lack of experience in dealing with such products. Consumers were often equally tentative and uncertain although there was a great deal of enthusiasm on the part of those who were keenly interested in such products. Many factors such as these created opportunities and schemes for the smaller and more venturous and creative individuals who wanted to get involved-- sometimes in unconventional ways. Oftentimes young and penniless entrepreneurs developed some hot selling Commodore software or hardware on a very low budget resulting in overnight fame and fortune.

Just as the Commodore Vic 20 was beginning to become fairly popular and many stores and some multi-level marketing programs had acquired significant inventories of Vic products rumors began to emerge that Commodore was working on a vastly more powerful version of the Vic 20 to be called the Vic 64 and eventually called the Commodore 64 (many came to casually refer to it as the "C-64" or just the "64"). As the rumors of the impending release of the Commodore 64 continued they sparked excitement and uncertainty in the Commodore market. Those who had invested quite a bit of money into the Vic 20 line found themselves with ambivalent and mixed emotions. This was probably the first experience which many individuals had ever encountered with the phenomenon we now refer to "upgrading". Undoubtedly some became resentful. Some of those who had developed their marketing strategy and acquired large inventories of Vic 20 products found themselves scrambling around to modify their plans or to obtain price-protection as the value of Vic 20 products began to plummet rapidly.

Commodore had originally planned to release the Commodore 64 for nearly $1000 (without any floppy drive or monitor) but by the time it actually hit the market they had already decided to reduce the suggested retail price to just under $500. This was still a lot of money back then-- keep in mind that $500 back then was about the equivalent of $1000 today. Still, it was the best deal on the home computer market-- especially since it had a built-in RF modulator for connecting directly to a regular television set. Amazingly, the price of the Commodore 64 plummeted to under $300 within a matter of months, and a few months later was down to $200. Suddenly customer interest in these amazing new computers began to heat up.

About this time many sizeable chain stores (some of which had already been carrying Vic-20 merchandise) began to carry Commodore 64 items. Regional electronic superstores got involved as did a significant number of smaller computer dealerships. Eventually Commodore 64 and Vic-20 software and hardware was carried by such national department stores as Sears, Montgomery Ward, Fred Meyer, LaBelles, K-Mart, and many others. Also, many toy stores such as Lionel Play World and Toys'R'Us began to sell these computers. The price dropped by another $50 and dealers were buying the Commodore for just over $100. Commodore became so popular that Commodore even offered shares of stock on the stock market for several years.

As the competition among retailers heated up it was not uncommon to see retailers willing to sell the Commodore 64 systems at cost or even at a slight loss in order to lure people into their stores. The strategy (which usually paid off) was that customers would see the computer selling at an incredibly low price of near $100 and come to buy the computer and end up buying the 1541 disk drive, a Commodore printer, Commodore modem, a 1702 Commodore monitor and a bunch of educational software, games, supplies and accessories to go along with it. By the time the customer walked out the door the purchase usually resulted in significant profit to the retailer.

Many after-market and 3rd party manufacturers subsequently began to create and market Commodore-compatible software, hardware, books, and accessories in an effort to get in on the blossoming industry. Many Commodore magazines also became established-- some of which even included monthly disks with many free programs on them. Many of our present software and hardware giants got their humble start during this period. Microsoft's Multiplan became a very popular spreadsheet for Commodore. Other companies such as Electronic Arts, Accolade, Activision, Cinemaware, Cosmi, Batteries Included, Sublogic, Epyx, Access, Infocom, Mastertronic, etc. soon became household words.

Commodore service and repair centers became quite common. Training centers taught computer fundamentals and programming using Commodore computers. Many schools, universities, research centers and educational enterprises began using Commodore computers. A significant number of small and medium size businesses used Commodore computers as well.

Unique marketing approaches continued to develop as smaller companies and private individuals began developing the concept of shareware or freeware. This new concept was based on the idea that a programmer could write and copyright a useful or fun program and then freely distribute copies of it to the public on the condition that end users would pay a registration fee to become an official user of the program. Usually a relatively small fee was supposed to be sent directly to the program's author. Oftentimes the author would provide an updated or more complete version or accompanying manual or program add-on or other benefit as an incentive to pay the registration fee. This kept overhead, production, and marketing costs down by relying on grass roots distribution and the "honor system" of marketing. Several shareware and freeware programs became fairly famous during this time, but undoubtedly a great many programmers' dreams never quite lived up to expectations. The idea of try-before-you-buy software has continued to evolve up to this day-- becoming more and more sophisticated and creative.

Also, during this same time period a great number of public domain programs began to emerge. There were many programmers who had written and not copyrighted their programs for various reasons whose programs began to be freely distributed without any registration fee being required. This greatly added to the availability of affordable software.

Another interesting phenomenon-- Commodore User's Groups-- began to unfold during this time. This phenomena was a result of the need and desire of people to share information regarding their computers and interests. User's groups were popular among other brands of computers, but probably not to the extent that they were popular among Commodore users. The Commodore was seen by many as the ideal hobby computer and many of those who had lower budgets had been attracted to the Commodore because of its price. Frequently these individuals (who often had more time than money) developed an incredible loyalty toward the Commodore computers. It was amazing that many of these Commodore users often showed more commitment to the Commodore 64 than Commodore Business Machines did.

A large factor in the success of the Commodore 64 was its amazingly versatile, futuristic and user-friendly design. The fact that this amazing computer had more memory, a nicer keyboard, and was easier to interface with peripherals than most computers of that era made it so it was and still is (in many ways) an ideal computer for educators, hobbyists, game players, beginning programmers and musicians. For the money it was also hard to beat as an affordable home word processing system. Its only weakness was in the area of larger business applications because of its 40 column video display, limited disk storage and slow disk access.

The powerful combination of Commodore chips allowed some amazing capabilities. The Commodore 64 utilized the Commodore 6510 microprocessor chip which was an advanced version of the Commodore 6502 microprocessor which had been used in the Vic 20, Apple 2, and Atari models. The 64 had revolutionary sound via the 6581 Sound Interface Device (SID) chip and was probably the first home computer to be able to emulate the human voice without additional hardware. This SID chip provided for 4 different voices and many sophisticated sound forms. The C-64 had superior 16 color graphics with sprite capabilities due to its 6567 Video Interface (VIC) Chip. The other support chips in the Commodore 64 were equally impressive for that time period. At the same time the early IBM home computers were non-color and non-graphic machines with sound that amounted to little more than beeping.

The Commodore home computers were fairly reliable considering their low price tag and sophistication. Many individuals went for years with very little maintenance and repair work required. However, certain problems with the hardware did manifest themselves periodically and somewhat predictably. Many of the repairs required for these computers stemmed from static electricity discharges blowing out the 6526 CIA chip-- usually from touching the joystick or game port after picking up static electricity from walking across carpet or touching the front of the television or monitor. This would result in some keyboard or joystick control malfunctions. Power supplies would occasionally fail or develop deceptive heat-related problems sometimes blowing out ram chips in the process or causing strange looking colored blocks or characters to appear on the screen. The 906114 PLA (logic array) chip (sometimes labelled with the number 82S100N or PLS100N) would sometimes fail spontaneously causing the computer to no longer have a picture. The 6581 SID sound chip would sometimes go out-- usually due to a monitor being connected improperly. On rare occasions the 6510 microprocessor, the 6567 NTSC VIC (video chip), the 901227 Kernal ROM, the 901225 Character ROM, or the 901226 BASIC ROM would fail. The Commodore disk drives would periodically need alignment and cleaning and an occasional chip replacement or bridge rectifier or such. Keyboards would likewise need to be cleaned infrequently. Because of the interdependency of each of the internal components of the Commodore computers it is not unusual for Commodore computers to have similar symptoms while actually having different underlying problems.

Even when experiencing occasional hardware problems the Commodore users rarely felt like they were at the mercy of the service wolves due to the many options which they had. Oftentimes there were simple and easy to implement solutions for Commodore malfunctions. Fuses (which were usually easy to replace) would get blown out in the computer, drive, or power supplies periodically, but they were all usually available at Radio Shack stores. New cables or external cleaning of contacts was sometimes all that was required. Some seemingly complex problems (especially with the Commodore 128 and Amiga) stemmed from the fact that various chips sometimes became loose in their sockets and could be easily pushed in tighter or removed and reseated. The good news was (and still is) that (even in a worst-case scenario) the Commodore computers and peripherals could usually be totally replaced with a new replacement unit for less than the average minimum repair fee for most IBM and Apple systems.

As used Commodore computers became widely available at amazingly low prices during the late 1980's and throughout the 1990's many of the Commodore repair centers had difficulty staying in business. Despite this, there are still a few local and several national places who do Commodore repair work, sell parts and manuals, and have diagnostic software and hardware tools and information available.

Commodore had to constantly work to develop peripherals to go along with the blossoming market during the 1980's. Because Commodore was marketed so widely in so many large national department stores and in so many foreign countries there began to be a big demand for these accessories and peripherals. During the mid to late 1980's individuals walking into most major department stores which sold computer products would typically have seen software and hardware for IBM, Apple, Commodore, and oftentimes Atari side-by-side or in close proximity.

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