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Atari rising
By EDITOR Thomas Moore REPORTER Michael Rogers

(FORTUNE Magazine) – Atari Corp. stole most of the spotlight at the winter Consumer Electronics Show in Las Vegas when Chairman Jack Tramiel revealed a new upgraded line of home computers--quickly dubbed the ''Jackintosh''--that he hopes will bite into the growing market created by Apple's Macintosh. The cheapest of the three new Atari models will have the same 128K memory capacity as Mac. But, priced at about $800 with a color monitor and disk drive, it will cost about $1,000 less than Mac. Assuming Tramiel can deliver by next summer, security analysts said the machines could pull Atari out of the red. Delays, however, can be fatal. Coleco's home computer, Adam, generated similar excitement at a Consumer Electronics Show 18 months ago but was plagued by production problems and has been scrapped (see Follow-Up). Sales forecasts by the Electronic Industries Association, which runs the shows, indicate that home computers, most costing less than $500, may rebound this year after a sluggish 1984. The association says that six million will be sold in 1985, a healthy 17.6% gain over last year and nearly three times 1984's growth rate. Sales of consumer electronics products as a whole are expected to increase 10% to $24.9 billion. The star performer will continue to be the videocassette recorder. Some 7.3 million VCRs were sold in 1984, representing a 78% increase over 1983, and the EIA projects that 9.5 million will be sold this year, an increase of 30%. ''It's getting to the point of being a real mass market product,'' says John Borden, a research director of the Yankee Group, an industry research firm based in Boston. He predicts that 30% of all U.S. households will have a VCR by the end of this year, and 50% by the end of the decade.