... Coleco, at a news conference, also said it halted one month ago its United States production of Colecovision, the company's popular home video game, to make room for production of the Adam, which is Coleco's first computer. But the company said it planned to resume production of Colecovision early next year.
The production halt for Colecovision surprised analysts. For the last six months, it has outsold other home video games. Coleco has been the only major video game manufacturer to avoid losses as demand has fallen sharply for the games. About 500,000 of the $150 video games were sold last year.
Morton E. Handel, Coleco's executive vice president for investor relations, said sales of Colecovision remain strong. But he said production of the game had to be halted so the company could focus its manufacturing efforts on Adam. Because of Coleco's limited production capacity, Mr. Handel said, the company is using the same production lines for Adam that it has been using for Colecovision.
''This was a plan we had set up in the second quarter to accelerate production of Colecovision and stockpile the machine to accommodate our needs in the third quarter for Adam,'' Mr. Handel said. ''We simply didn't have any other space.''...
ADAM, you bastard, you killed Kenny, I mean, the CV!!
Seriously, I still have to find a trustable piece of information saying that Coleco was loosing money with the ColecoVision, and now I found this, which would confirm that perhaps they never did. So I suppose they just panicked like the rest of the market about video games being a fad and risked everything with the ADAM without actually having a good reason for that... What bunch of dumb heads...
EDIT: BTW, the article was published on September 7, 1983.
Edited by opcode, Mon Oct 19, 2009 12:55 PM.