The Atari 7800 was the first console by Atari to be developed by an external company. Atari's parent company, Warner Communications, had lost faith in Atari after the Atari 5200 failed to gain traction as well as their failure to secure a deal to release Nintendo's Famicom in the United States under the Atari label. Warner outsourced the project to General Computer Corporation, a company that had originally been sued by Atari, Inc. for making illegal enhancements for their arcade games, but ended up being acquired as a subsidiary after they realized they had a lot of useful talent.
Contributed By: HyperIria
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