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The Atari 7800 was Atari's attempt to regain the gaming market after the crash. However, the 7800 hardware was originally ready for public release in 1984, not 1986 when it was finally released. Due to Nintendo's cut through tactics in the gaming industry, the console was never able to get top publishers to help back the system, thus loosing to the NES and the Sega Master System.

To the Atari 7800's detriment, this is the first console to ever be released with true backward compatibility with a preceding console. The Atari 7800 was capable of playing nearly every single game released past and present for the Atari VCS/2600 console.

Like other Atari consoles, this system has a cult following and still see's new homebrew releases from time to time.