Editing Commodore International (section)

==History==
===Commodore Business Machines (Canada) Ltd. (1954–1976)===
[[File:Commodore196x.svg|thumb|Commodore logo (1965–1984)|334x334px]][[Jack Tramiel]] and Manfred Kapp met in the early 1950s while both employed by the Ace Typewriter Repair Company in [[New York City]]. In 1954, they partnered to sell used and reconditioned [[typewriter]]s and used their profits to purchase the Singer Typewriter Company. After acquiring a local dealership selling Everest [[adding machine]]s, Tramiel convinced Everest to give him and Kapp exclusive Canadian rights to its products and established Everest Office Machines in [[Toronto]] in 1955.<ref>{{Cite web |title=Commodore's History in the Adding Machine Business – Commodore International Historical Society |url=https://commodore.international/2022/03/11/commodores-history-in-the-adding-machine-business/ |access-date=2022-07-01 |website=commodore.international |language=en-US}}</ref>

By 1958, the adding machine business was slowing. Tramiel made a connection with an Everest agent in [[England]] who alerted him to a business opportunity to import portable typewriters manufactured by a [[Czechoslovakia]]n company into Canada. On October 10, 1958, Tramiel and Kapp incorporated Commodore Portable Typewriter, Ltd. in Toronto to sell the imported typewriters.<ref>Bagnall, Brian (2006). ''On the Edge: The Spectacular Rise and Fall of Commodore'', Variant Press. Page xiii. {{ISBN|0-9738649-0-7}}</ref> Commodore funded its operations through [[factoring (finance)|factoring]] over its first two years but faced a continual cash crunch. To bolster the company's financial condition, Tramiel and Kapp sold a portion of the company to [[Atlantic Acceptance Corporation]], one of Canada's largest financing companies, and Atlantic President C. Powell Morgan became the chairman of Commodore. In 1962, the company went public on the [[Montreal Stock Exchange]],<ref>Bagnall, Brian (2006). ''On the Edge: The Spectacular Rise and Fall of Commodore'', Variant Press. Page 532. {{ISBN|0-9738649-0-7}}</ref> under the name of Commodore Business Machines (Canada), Ltd.

With the financial backing of Atlantic Acceptance, Commodore expanded rapidly in the early 1960s. It purchased a factory in [[West Germany]] to manufacture its typewriters, began distributing office furniture for a Canadian manufacturer, and sold Pearlsound radio and stereo equipment. In 1965, it purchased the furniture company for which it served as the distributor and moved its headquarters to its facilities on Warden Avenue in the [[Scarborough, Toronto|Scarborough]] district of Toronto.<ref>{{cite web |title=Might's Greater Toronto city directory, 1966 |url=https://archive.org/details/torontocitydirectory1966/page/n37/mode/2up |website=Internet Archive |year=1966 |access-date=19 October 2020}}</ref> That same year, the company made a deal with a Japanese manufacturer to produce adding machines for Commodore, and purchased the office supply retailer Wilson Stationers to serve as an outlet for its typewriters.

In 1965, Atlantic Acceptance collapsed when it failed to make a routine payment. A subsequent investigation by a [[royal commission]] revealed a massive fraud scheme in which the company falsified financial records to acquire loans funneled into a web of subsidiaries where C. Powell Morgan held a personal stake. Morgan then pocketed the money or invested it in several unsuccessful ventures. Commodore was one of the Atlantic subsidiaries directly implicated in this scheme. Despite heavy suspicion, the commission could not find evidence of wrongdoing by Tramiel or Kapp. The scandal left Commodore in a worse financial position as it had borrowed heavily from Atlantic to purchase Wilson, and the loan was called in. Due to the financial scandal, Tramiel could only secure a bridge loan by paying interest well above the prime rate and putting the German factory up as collateral. Tramiel worked with a financier named [[Irving Gould]] to extricate himself, who brokered a deal to sell Wilson Stationers to an American company. Commodore now owed Gould money and still did not have sufficient capital to meet its payments, so Tramiel sold 17.9% of the company to Gould in 1966 for ${{Format price|500000}} (equivalent to ${{Format price|{{Inflation|US-GDP|500000|1966}}}} in {{Inflation/year|US-GDP}}). As part of the deal, Gould became the company's new chairman.[[File:Commodore Calculator Minuteman MM3S-4546.jpg|thumb|Minuteman MM3S]]

Tramiel saw some of the first electronic calculators through his Japanese contacts in the late 1960s. He pivoted from adding machines to marketing calculators produced by companies like [[Casio]] under the Commodore brand name. In 1969, Commodore began manufacturing its electronic calculators. Commodore soon had a profitable calculator line and was one of the more popular brands in the early 1970s, producing both consumer and scientific/programmable calculators. However, in 1975, [[Texas Instruments]], the leading supplier of calculator parts, entered the market directly and put out a line of machines priced at less than Commodore's cost for the parts. Commodore obtained an infusion of cash from Gould, which Tramiel used beginning in 1976 to purchase several second-source chip suppliers, including [[MOS Technology|MOS Technology, Inc.]], to assure his supply.<ref name="New Scientist Sep 1976">{{cite magazine|title=Calculator maker integrates downwards |magazine=New Scientist |volume=71 |issue=1017 |page=541 |date=September 9, 1976 |url=https://books.google.com/books?id=xUAV0VcszIQC&pg=PA541 |issn=0262-4079 |url-status=live |archive-url=https://web.archive.org/web/20150318175222/http://books.google.com/books?id=xUAV0VcszIQC&pg=PA541 |archive-date=March 18, 2015 }}</ref> He agreed to buy MOS, which was having troubles of its own, on the condition that its chip designer Chuck Peddle join Commodore directly as head of engineering.

In 1976, Commodore Business Machines (Canada) Ltd. was dissolved and replaced by the newly formed Bahamanian corporation Commodore International, which became the new parent of the Commodore group of companies.<ref>{{cite news | newspaper=The Toronto Star | date=August 18, 1976 | title=Commodore Reorganizes in Bahamas | page=C8}}</ref>

===Entry into the computer market and success (1977–1984)===
[[File:Commodore PET2001.jpg|thumb|Commodore PET 2001 (1977)]]

[[Chuck Peddle]] convinced Jack Tramiel that calculators were a dead end business and that they should turn their attention to [[home computer]]s. Peddle packaged his [[single-board computer]] design in a metal case, initially with a keyboard using calculator keys, later with a full-travel [[QWERTY]] keyboard, [[monochrome monitor]], and [[Commodore Datasette|tape recorder]] for program and data storage, to produce the [[Commodore PET]] (Personal Electronic Transactor). From PET's 1977 debut, Commodore was primarily a computer company.

Commodore had been reorganized the year before into Commodore International, Ltd., moving its financial headquarters to the [[The Bahamas|Bahamas]] and its operational base to [[West Chester, Pennsylvania]], near the MOS Technology site. The operational headquarters, where research and development of new products occurred, retained the name Commodore Business Machines, Inc. In 1980, Commodore launched production for the European market in [[Braunschweig]], [[Germany]].<ref>{{cite web|url=http://www.computerwoche.de/a/commodore-bald-aus-braunschweig,1189763 |title=Computer aus Zonenrandgebiet:: Commodore bald aus Braunschweig |publisher=computerwoche.de |access-date=2015-07-12 |url-status=live |archive-url=https://web.archive.org/web/20150502182823/http://www.computerwoche.de/a/commodore-bald-aus-braunschweig%2C1189763 |archive-date=May 2, 2015 }}</ref> This site once employed up to 2000 employees, and in February 2017 an exhibition room for about 200 Commodore products was opened here to commemorate its past.<ref name="bz">Braunschweiger Zeitung: ''Erinnerung an einen Konzern mit Weltruf'', February 17, 2017</ref> 
[[File:Commodore_Werk_Braunschweig.jpg|thumb|Commodore Werk in [[Braunschweig]], West Germany, its large European HQ]]
By 1980, Commodore was one of the three largest microcomputer companies and the largest in the [[European Economic Community|Common Market]].<ref name="hogan19810831">{{cite news|url=https://books.google.com/books?id=rD0EAAAAMBAJ&pg=PA6 |title=From Zero to a Billion in Five Years |work=InfoWorld |date=August 31, 1981 |access-date=February 15, 2015 |author=Hogan, Thom |pages=6–7 |url-status=live |archive-url=https://web.archive.org/web/20170301153806/https://books.google.com/books?id=rD0EAAAAMBAJ&lpg=PA44&pg=PA6 |archive-date=March 1, 2017 }}</ref> The company had lost its early domestic-market sales leadership, however by mid-1981 its US market share was less than 5% and US computer magazines rarely discussed Commodore products.<ref name="hogan19810914state">{{Cite news |url=https://books.google.com/books?id=Mj0EAAAAMBAJ&pg=PA10 |title=State of Microcomputing / Some Horses Running Neck and Neck |last=Hogan |first=Thom |date=1981-09-14 |access-date=2019-04-08 |pages=10–12}}</ref> ''BYTE'' stated "the lack of a marketing strategy by Commodore, as well as its past nonchalant attitude toward the encouragement and development of good software, has hurt its credibility, especially in comparison to the other systems on the market".<ref name="dickerman198208">{{cite news|url=https://archive.org/stream/byte-magazine-1982-08/1982_08_BYTE_07-08_Logo#page/n365/mode/2up |title=The Commodore 8032 Business System |work=BYTE |date=August 1982 |access-date=January 16, 2016 |author=Dickerman, Harold |page=366 |url-status=live |archive-url=https://web.archive.org/web/20160315220147/https://archive.org/stream/byte-magazine-1982-08/1982_08_BYTE_07-08_Logo |archive-date=March 15, 2016 }}</ref> Writing for ''Programming the PET/CBM'', Raeto Collin West wrote "CBM's product manuals are widely recognized to be unhelpful; this is one of the reasons for the existence of this book."<ref name="west1982">{{Cite book |title=Programming the PET/CBM |last=West |first=Raeto Collin |publisher=Compute! Books |year=1982 |isbn=0-942386-04-3 |location=Greensboro, North Carolina |page=1 |chapter=Introduction and Overview |chapter-url=https://archive.org/stream/COMPUTEs_Programming_the_PET-CBM_1982_Small_Systems_Services#page/n9/mode/2up}}</ref>

Commodore re-emphasized the US market with the [[VIC-20]].{{r|hogan19810914state}} The PET computer line was used primarily in schools, where its tough all-metal construction and ability to share printers and disk drives on a simple [[local area network]] were advantages, but PETs did not compete well in the home setting where graphics and sound were important. This was addressed with the VIC-20 in 1981, which was introduced at a cost of {{US$|299}} (equivalent to ${{Format price|{{Inflation|US-GDP|299|1981}}}} in {{Inflation/year|US-GDP}}) and sold in retail stores. Commodore bought aggressive advertisements featuring [[William Shatner]] asking consumers, "Why buy just a video game?" The strategy worked, and the VIC-20 became the first computer to ship more than one million units, with 2.5 million units sold over the machine's lifetime,<ref>Bagnall, Brian (2006). ''On the Edge: The Spectacular Rise and Fall of Commodore'', Variant Press. Page 221. {{ISBN|0-9738649-0-7}}</ref> which helped Commodore's sales in Canadian schools.<ref>{{cite web|url=https://archive.org/stream/run-magazine-30/Run_Issue_30_1986_Jun#page/n63/mode/2up |title=RUN Magazine Issue 30 June 1986 |date=June 1986 |url-status=live |archive-url=https://web.archive.org/web/20160311000847/https://archive.org/stream/run-magazine-30/Run_Issue_30_1986_Jun |archive-date=March 11, 2016 }}</ref> In promotions aimed at schools and to reduce unsold inventory, PET models labeled 'Teacher's PET' were given away as part of a "buy 2 get 1 free" promotion.{{citation needed|date=July 2024}} As of calendar year 1980, Commodore sales were $40 million, behind [[Apple Computer]] and [[Tandy Corporation]] in the market.<ref>{{Cite web |title=Market Place; I.B.M. Threat To Apple |work=The New York Times |date=September 2, 1981 |url=https://www.nytimes.com/1981/09/02/business/market-place-ibm-threat-to-apple.html |access-date=2024-10-30 |last1=Metz |first1=Robert }}</ref>

[[File:Commodore-64-Computer-FL.jpg|thumb|Commodore 64 (1982)]]
In 1982, Commodore introduced the [[Commodore 64]] (C64) as the successor to the VIC-20. Due to its [[integrated circuit|chips]] designed by MOS Technology, the C64 possessed advanced sound and graphics for its time, and is often credited with starting the computer [[demo scene]]. Its {{US$|595}} (equivalent to ${{Format price|{{Inflation|US-GDP|595|1982}}}} in {{Inflation/year|US-GDP}}) price was high compared to that of the VIC-20 but was much less expensive than any other 64K computer. Early C64 advertisements boasted that "You can't buy a better computer at twice the price", with Australian adverts in the mid-1980s using the slogan "Are you keeping up with the Commodore? Because the Commodore is keeping up with you."<ref>{{cite web|url=https://archive.org/details/Are_You_Keeping_Up_With_Your_Commodore_1983_Commodore_AU |title=Computer Commercial: Are You Keeping Up With Your Commodore (1983)(Commodore)(AU).mp4 |work=Internet Archive |year=1983 |access-date=November 29, 2015 |url-status=live |archive-url=https://web.archive.org/web/20160322033741/https://archive.org/details/Are_You_Keeping_Up_With_Your_Commodore_1983_Commodore_AU |archive-date=March 22, 2016 }}</ref>

In 1983, Tramiel decided to focus on market share and cut the price of the VIC-20 and C64 dramatically, starting the [[History of personal computers#Commodore price war and crash|home computer war]]. TI responded by cutting prices on its 1981 [[TI-99/4A]], leading to a price war involving most vendors other than [[Apple Inc.|Apple Computer]], including Commodore, TI and [[Atari]]. Commodore began selling the VIC-20 and C64 through mass-market retailers such as [[Kmart (United States)|K-Mart]], in addition to traditional computer stores. By the end of this conflict, Commodore had shipped around 22 million C64s, making the C64 the best-selling computer, until the [[Raspberry Pi]] overtook it in 2019.

[[File:C16pi.jpg|thumb|The "heart" of Commodore's philosophy: Early [[Commodore 16]] main PCB (prototype), not used in the regular series model. According to Commodore computer engineer [[Bil Herd]], this single-sided [[Printed circuit board|PCB]] was an extraordinary attempt of cost saving by Commodore, which probably failed due to technical problems.<ref>Plus4world.com: [http://plus4world.powweb.com/forum/34360/ Bil Herd: About the Commodore 16 prototype]. Retrieved August 13, 2017</ref>]]

At the June 1983 [[Consumer Electronics Show]], Commodore lowered the retail price of the C64 to {{US$|long=no|300}}, and stores sold it for as little as {{US$|long=no|199}}. At one point, the company was selling as many computers as the rest of the industry combined.<ref name="mitchell19830906">{{cite news | url=https://news.google.com/newspapers?id=gn0hAAAAIBAJ&pg=5584%2C3561802 | title=A summer-CES report | work=Boston Phoenix | date=September 6, 1983 | access-date=January 10, 2015 | author=Mitchell, Peter W. |page=4}}</ref> Prices for the VIC-20 and C64 were $50 lower than Atari's prices for the 600XL and 800XL.<ref name="mace19840227">{{cite news|url=https://books.google.com/books?id=gy4EAAAAMBAJ&pg=PA100 |title=Can Atari Bounce Back? |work=InfoWorld |date=February 27, 1984 |access-date=January 18, 2015 |author=Mace, Scott |page=100 |url-status=live |archive-url=https://web.archive.org/web/20170304173218/https://books.google.com/books?id=gy4EAAAAMBAJ&lpg=PA15&pg=PA100 |archive-date=March 4, 2017 }}</ref> Commodore's strategy was to, according to a spokesman,{{Who|date=August 2023}} devote 50% of its efforts to the under-{{US$|long=no|500}} market, 30% on the {{val|p=$|500|–|1000}} market, and 20% on the over-{{US$|long=no|1000}} market. Its vertical integration and Tramiel's focus on cost control helped Commodore do well during the price war, with {{US$|long=no|1 billion}} in 1983 sales.<ref name="leemon198405">{{cite news|url=https://archive.org/stream/Ahoy_Issue_05_1984-05_Ion_International_US#page/n43/mode/2up |title=The Future of Commodore? |work=Ahoy! |date=May 1984 |access-date=June 27, 2014 |author=Leeman, Sheldon |page=44 |url-status=live |archive-url=https://web.archive.org/web/20160316115719/https://archive.org/stream/Ahoy_Issue_05_1984-05_Ion_International_US |archive-date=March 16, 2016 }}</ref> Although the company and Tramiel's focus on cost cutting over product testing caused hardware defects in the initial C64, some resolved in later iterations.<ref name="ieee85">{{cite journal|last2=Wallich |first2=Paul |date=March 1985 |title=Design case history: the Commodore 64 |url=https://spectrum.ieee.org/ns/pdfs/commodore64_mar1985.pdf |journal=IEEE Spectrum |pages=48–58 |issn=0018-9235 |last1=Perry |first1=Tekla S. |volume=22 |issue=3 |doi=10.1109/MSPEC.1985.6370590 |s2cid=11900865 |access-date=2011-11-12 |url-status=dead |archive-url=https://web.archive.org/web/20120513181613/http://spectrum.ieee.org/ns/pdfs/commodore64_mar1985.pdf |archive-date=May 13, 2012 }}</ref> By early 1984, [[Synapse Software]], the largest provider of third-party Atari 8-bit software, received 65% of sales from the Commodore market,{{r|mace19840227}} and Commodore sold almost three times as many computers as Atari that year.<ref name="kleinfield19841222">{{cite news|url=https://www.nytimes.com/1984/12/22/business/trading-up-in-computer-gifts.html?pagewanted=all |title=Trading Up in Computer Gifts |work=The New York Times |date=December 22, 1984 |access-date=February 5, 2015 |author=Kleinfield, N. R. |url-status=live |archive-url=https://web.archive.org/web/20150205110143/http://www.nytimes.com/1984/12/22/business/trading-up-in-computer-gifts.html?pagewanted=all |archive-date=February 5, 2015 |url-access=limited}}</ref>

Despite its focus on the lower end of the market, Commodore's computers were also sold in upmarket department stores such as [[Harrods]].<ref name="commodore_7_6">{{cite journal |author-first=Mikos |author-last=Garamszeghy |date=1987 |title=Commodore in Europe: An International Comparison of Price and Availability |url=http://csbruce.com/cbm/transactor/pdfs/trans_v7_i06.pdf |archive-url=https://web.archive.org/web/20170918043301/http://csbruce.com/cbm/transactor/pdfs/trans_v7_i06.pdf |archive-date=2017-09-18 |url-status=live |journal=[[The Transactor]] |publisher=[[Transactor Publishing]] |volume=7 |issue=6 |pages=21–23 |access-date=December 5, 2015}}</ref> The company also attracted several high-profile customers. In 1984, the company's British branch became the first manufacturer to receive a [[Royal Warrant of Appointment (United Kingdom)|royal warrant]] for computer business systems.<ref name="brk_5_2">{{cite journal |author=<!-- Staff writers; no byline --> |date=1984 |title=News BRK |url=http://csbruce.com/cbm/transactor/pdfs/trans_v5_i02.pdf |archive-url=https://web.archive.org/web/20200521042454/http://csbruce.com/cbm/transactor/pdfs/trans_v5_i02.pdf |archive-date=2020-05-21 |url-status=live |journal=[[The Transactor]] |publisher=[[Transactor Publishing]] |volume=5 |issue=2 |pages=6–14 |access-date=January 1, 2015}}</ref> [[NASA]]'s [[Kennedy Space Center]] was another noted customer, with over 60 Commodore systems processing documentation, tracking equipment and employees, costing jobs, and ensuring the safety of hazardous waste.<ref name="news_4_2">{{cite journal |author=<!-- Staff writers; no byline --> |date=1983 |title=News and New Products |url=http://csbruce.com/cbm/transactor/pdfs/trans_v4_i02.pdf |archive-url=https://web.archive.org/web/20170918044559/http://csbruce.com/cbm/transactor/pdfs/trans_v4_i02.pdf |archive-date=2017-09-18 |url-status=live |journal=[[The Transactor]] |publisher=Canadian Micro Distributors |volume=4 |issue=2 |pages=4–9 |access-date=December 5, 2015}}</ref>

===Departure of Tramiel, acquisition of Amiga and competition with Atari (1984–1987)===
[[File:Commodore C= logo.svg|thumb|upright=0.5|Commodore's logo, dubbed the "Chicken Lips"]]

By early 1984, Commodore was the most successful home computer company, with more than {{US$|long=no|1 billion}} (equivalent to ${{Format price|{{Inflation|US-GDP|1000000000|1984}}}} in {{Inflation/year|US-GDP}}) in annual revenue and {{US$|long=no|100 million}} (equivalent to ${{Format price|{{Inflation|US-GDP|100000000|1984}}}} in {{Inflation/year|US-GDP}}) in net income, whilst competitors had large losses. The company's revenue of $425 million in the fourth calendar quarter of 1983 more than doubled its revenue of {{US$|long=no|176 million}} a year earlier.<ref name=pollack19840114>{{cite news |newspaper=The New York Times |url=https://www.nytimes.com/1984/01/14/business/founder-of-commodore-resigns-unexpectedly.html |title= Founder of Commodore Resigns Unexpectedly |first=Andrew |last=Pollack |date=14 January 1984 | page=27}}</ref> Although ''[[Creative Computing]]'' compared the company to "a well-armed battleship [which] rules the micro waves" and threatened to destroy rivals like [[Atari, Inc.|Atari]] and [[Coleco]],<ref name="anderson198403">{{cite news|url=https://archive.org/stream/creativecomputing-1984-03/Creative_Computing_v10_n03_1984_Mar#page/n57/mode/2up |title=Commodore |work=Creative Computing |date=March 1984 |access-date=February 6, 2015 |author=Anderson, John J. |page=56 |author-link=John J. Anderson |url-status=live |archive-url=https://web.archive.org/web/20150405172428/https://archive.org/stream/creativecomputing-1984-03/Creative_Computing_v10_n03_1984_Mar |archive-date=April 5, 2015 }}</ref> Commodore's board of directors, affected by the price spiral, decided to exit the company. In January 1984, an internal power struggle resulted after Tramiel resigned due to disagreements with the board chairman, [[Irving Gould]]. Gould replaced Tramiel with Marshall F. Smith, a steel executive without a computer or consumer marketing experience.<ref name="maher20130728">{{cite web|url=http://www.filfre.net/2013/07/a-computer-for-every-home/ |title=A Computer for Every Home? |work=The Digital Antiquarian |date=July 28, 2013 |access-date=July 10, 2014 |author=Maher, Jimmy |url-status=live |archive-url=https://web.archive.org/web/20140711193125/http://www.filfre.net/2013/07/a-computer-for-every-home/ |archive-date=July 11, 2014 }}</ref><ref name="DAK54">{{cite news | first = Marty | last = Herzog | date = January 1988 | title = Neil Harris | work = [[Comics Interview]] | issue = 54 | pages = 41–51 | publisher = [[Fictioneer Books]]}}</ref><ref>(1985). {{YouTube|id=NImJFV3wH88#t=9m25s|title=Jack Tramiel Interview}}</ref> Tramiel's departure at the moment of Commodore's greatest financial success surprised the industry.{{r|pollack19840114}}

[[File:Sx-64 build crop.jpg|thumb|[[Commodore SX-64]] (1984)]]
In May 1984, Tramiel founded a new company, Tramel Technology, and hired several Commodore engineers to begin work on a next-generation computer design.<ref>{{cite web |last1=Current |first1=Michael D. |title=A History of Tramel Technology / Atari |url=https://mcurrent.name/atarihistory/tramel_technology.html |website=mcurrent.name |access-date=February 2, 2024}}</ref> That same year, Tramiel discovered [[Warner Communications]] wanted to sell Atari, which was rumored to be losing about {{US$|long=no|10000}} a day. Interested in Atari's overseas manufacturing and worldwide distribution network for a new computer, he approached Atari and entered negotiations. After several talks with Atari in May and June 1984, Tramiel had secured funding and bought Atari's Consumer Division (which included the console and home computer departments) in July.<ref>{{cite web|title =Time Warner Companies Inc, et al. · SC 13D/A|publisher =secinfo.com|date= March 29, 1994|url =http://www.secinfo.com/dMESy.bd.htm|access-date = February 2, 2024 }}</ref> In July 1984 Tramiel bought the consumer side of Atari Inc. from [[Time Warner|Warner Communications]] and released the [[Atari ST]] earlier in 1985 for about {{US$|long=no|800}}. As more executives and researchers left Commodore after the announcement to join Tramiel's new company [[Atari Corporation|Atari Corp.]], Commodore followed by filing lawsuits against four former engineers for theft of trade secrets in late July.{{Year needed|date=August 2023}} This was intended, in effect, to bar Tramiel from releasing his new computer. One of Tramiel's first acts after forming Atari Corp. was to fire most of Atari's remaining staff and to cancel almost all ongoing projects to review their continued viability. In late July to early August,{{Year needed|date=August 2023}} Tramiel representatives discovered the original Amiga contract from the previous fall. Seeing a chance to gain some leverage, Tramiel immediately used the agreement to counter-sue Commodore on August 13.{{Year needed|date=August 2023}}

The remaining Commodore management sought to salvage the company's fortunes and plan for the future, and did so by buying a small [[startup company]] called [[Amiga Corporation]] in August 1984 for {{US$|long=no|25 million}} ({{US$|long=no|12.8 million}} in cash and $550,000 in common shares). Amiga became a subsidiary of Commodore, called Commodore-Amiga, Inc.<ref>David Needle. "Special Report" p.90 Personal Computing, (August 1985)</ref> During development in 1981, Amiga had exhausted venture capital and needed more financing. Jay Miner and his company had approached their former employer, the Warner-owned [[Atari]], who paid Amiga to continue development work.<ref>{{cite web|title=TOP SECRET: Confidential Atari-Amiga Agreement |url=http://www.atarimuseum.com/articles/mickey.html |archive-url=https://archive.today/20120723091215/http://www.atarimuseum.com/articles/mickey.html |url-status=dead |archive-date=2012-07-23 |date=November 1981 |work=Atari Historical Society |access-date=2006-07-23 }}</ref> In return, Atari received the exclusive use of the design as a video game console for one year, after which Atari would have the right to add a keyboard and market it as a complete Amiga computer. The Atari-Amiga contract and engineering logs identify the Atari-Amiga product was designated as the 1850XLD. As Atari was heavily involved with Disney at the time, it was later code-named "Mickey", and the 256K memory expansion board was codenamed "Minnie".<ref>{{cite web|url=http://archives.atarimuseum.com/archives/archives.html |title="Confidential Atari-Amiga Agreement" and "Afterthoughts: The Atari 1600XL Rumor" |publisher=Archives.atarimuseum.com |access-date=2009-08-10 |url-status=live |archive-url=https://web.archive.org/web/20090415111352/http://archives.atarimuseum.com/archives/archives.html |archive-date=April 15, 2009 }}</ref>

Still suffering serious financial problems, Amiga sought more monetary support from investors that entire spring. At around the same time that Tramiel was negotiating with Atari, Amiga entered into discussions with Commodore. The discussions ultimately led to Commodore's intentions to purchase Amiga outright, which Commodore viewed would cancel any outstanding contracts{{snd}} including Atari Inc.'s. Tramiel counter-sued on the basis of this interpretation, and sought damages and an injunction to bar Amiga and effectively Commodore from producing any resembling technology, to render Commodore's new acquisition and the source for its next generation of computers useless. The resulting court case lasted several years.<ref name="Jay Miner">Jay Miner</ref>

[[File:Amiga500 system.jpg|thumb|Amiga 500 (1987)]]
Commodore introduced a new [[32-bit]] computer design to market in the fall of 1985 named the [[Amiga 1000]] for {{US$|1295}}, first demonstrated at the CES in 1984. An Atari-Commodore rivalry continued throughout the life of the ST and Amiga platforms. While the rivalry was a holdover from the competition between the C64 and Atari 800, the events leading to the launch of the ST and Amiga served to further alienate fans of each computer, who disagreed as to which platform was superior.{{Additional citation needed|date=August 2023}} This was reflected in sales numbers for the two platforms until the release of the [[Amiga 500]] in 1987, which led the Amiga sales to exceed the ST by about 1.5 to 1,{{Citation needed|date=June 2008}} despite reaching the market later. However, neither platform captured a significant share of the world computer market, with only the Apple Macintosh surviving the industry-wide shift to [[Intel]]-based [[x86]] computers using [[Microsoft Windows]].

Commodore and Atari both sought to compete in the workstation market, with Commodore announcing in 1988 a [[Transputer]]-driven system based on the Amiga 2000 in response to the [[Atari Transputer Workstation]]. Similarly, a Unix workstation based on the Amiga 2000, featuring the 68020 CPU, was detailed as Atari announced developer shipments of its own 68030-based Unix workstation within a claimed "to or three months".<ref name="byte198806_workstations">{{ cite magazine | url=https://archive.org/details/BYTE-1988-06/page/n17/mode/1up | title=U.S. Firms Show Workstations Overseas | magazine=Byte | date=June 1988 | access-date=20 February 2024 | pages=14 }}</ref> Atari's workstation, the [[TT030]], eventually arrived in 1990 without a version of Unix available,<ref name="start199102_tterrific">{{ cite magazine | url=https://archive.org/details/STart-Magazine-Issue-41/page/n21/mode/2up | title=TTerrific! | magazine=STart | last1=Small | first1=Dave | date=February 1991 | access-date=21 February 2024 | pages=22–30, 64–65 }}</ref> this only eventually becoming available to developers in late 1991.<ref name="streport19911101_lee">{{ cite magazine | url=https://archive.org/details/st-report-743/page/n7/mode/2up | title=A Little of This, A Little of That | magazine=ST Report | last1=Lee | first1=Michael | date=1 November 1991 | access-date=21 February 2024 | pages=8–14 }}</ref> Commodore's workstation arrived in 1990 in the form of the [[Amiga 3000UX]].

===Decline and later years (1987–1994)===

Commodore suffered a poor reputation with its dealers and customers, and upon the 1987 introduction of the Amiga 2000, Commodore retreated from its earlier strategy of selling its computers to discount outlets and toy stores and favored authorized dealers.<ref>{{cite web|url=http://articles.philly.com/1988-11-07/business/26247191_1_amiga-commodore-international-jack-tramiel |title=Commodore's Back On Line, And Amiga's The Reason |url-status=dead |archive-url=https://web.archive.org/web/20150112211040/http://articles.philly.com/1988-11-07/business/26247191_1_amiga-commodore-international-jack-tramiel |archive-date=January 12, 2015 }}</ref><ref>{{cite web|url=http://www.atarimagazines.com/compute/issue88/AmigaView.php |title=The Great Amiga Reboot |url-status=live |archive-url=https://web.archive.org/web/20150112231318/http://www.atarimagazines.com/compute/issue88/AmigaView.php |archive-date=January 12, 2015 }}</ref><ref>{{cite web|url=https://books.google.com/books?id=_z4EAAAAMBAJ&pg=PA36 |title=1987 Commodore ad in InfoWorld targeted at dealers |date=October 26, 1987 |url-status=live |archive-url=https://web.archive.org/web/20150514032133/https://books.google.com/books?id=_z4EAAAAMBAJ&pg=PA36 |archive-date=May 14, 2015 }}</ref> [[Adam Osborne]] stated in April 1981 that "the microcomputer industry abounds with horror stories describing the way Commodore treats its dealers and its customers."<ref name="osborne19810413">{{cite news|url=https://books.google.com/books?id=Dj4EAAAAMBAJ&pg=PA42 |title=The Portable Osborne |work=InfoWorld |date=April 13, 1981 |access-date=January 1, 2015 |author=Osborne, Adam |pages=42–43 |url-status=live |archive-url=https://web.archive.org/web/20150318054343/http://books.google.com/books?id=Dj4EAAAAMBAJ&lpg=PP42&rview=1&pg=PA42 |archive-date=March 18, 2015 }}</ref> Commodore under Tramiel had a reputation for [[cannibalization (marketing)|cannibalizing]] its own products with newer ones;{{r|pollack19840114}} [[Doug Carlston]] and others in the industry believed rumors in late 1983 that Commodore would discontinue the C64 despite its success because they disliked the company's business practices, including its poor treatment of dealers and introducing new computers incompatible with existing ones. A Boston reseller said, "It's too unsettling to be one of their dealers and not know where you stand with them."<ref name="wierzbicki1983">{{cite news|url=https://books.google.com/books?id=6C8EAAAAMBAJ&pg=PA24 |title=Longevity of Commodore 64, VIC 20 questioned |work=InfoWorld |date=December 5, 1983 |access-date=January 13, 2015 |author=Wierzbicki, Barbara |page=24 |url-status=live |archive-url=https://web.archive.org/web/20150318062120/https://books.google.com/books?id=6C8EAAAAMBAJ&lpg=PA23&pg=PA24 |archive-date=March 18, 2015 }}</ref> After Tramiel's departure, another journalist wrote that he "had never been able to establish excellent relations with computer dealers ... computer retailers have accused Commodore of treating them as harshly as if they were suppliers or competitors, and as a result, many have become disenchanted with Commodore and dropped the product line".{{r|leemon198405}} Software developers also disliked the company, with one stating that "Dealing with Commodore was like dealing with [[Attila|Attila the Hun]]."<ref name="chinsoft19850128">{{cite news |last=Chin |first=Kathy |date=January 28, 1985 |title=Atari Promises Software For ST |url=https://books.google.com/books?id=6i4EAAAAMBAJ&pg=PA15 |work=InfoWorld |publisher=IDG |page=17 |access-date=March 19, 2011 |url-status=live |archive-url=https://web.archive.org/web/20130527224216/http://books.google.com/books?id=6i4EAAAAMBAJ&lpg=PA15 |archive-date=May 27, 2013}}</ref> At the 1987 [[Comdex]], an informal ''[[InfoWorld]]'' survey found that none of the developers present planned to write for Commodore platforms.<ref>{{cite web|url=https://books.google.com/books?id=Sj0EAAAAMBAJ&pg=PA8 |title=OS/2's Arrival Marks the Dawn of a New Era |date=November 9, 1987 |url-status=live |archive-url=https://web.archive.org/web/20150514012249/https://books.google.com/books?id=Sj0EAAAAMBAJ&pg=PA8&lpg=PA8 |archive-date=May 14, 2015 }}</ref> Commodore's software had a poor reputation;{{Additional citation needed|date=August 2023}} ''InfoWorld'' in 1984, for example, stated that "so far, the normal standard for Commodore software is mediocrity".<ref name="mace19840409">{{cite news|url=https://books.google.com/books?id=jC4EAAAAMBAJ&pg=PA50 |title=Atarisoft vs. Commodore |work=InfoWorld |date=April 9, 1984 |access-date=February 4, 2015 |author=Mace, Scott |page=50 |url-status=live |archive-url=https://web.archive.org/web/20150318135131/http://books.google.com/books?id=jC4EAAAAMBAJ&lpg=PA15&pg=PA50 |archive-date=March 18, 2015 | volume=6 |issue=15 }}</ref>

Tramiel's successor, Marshall F. Smith, left the company in 1986, as did his successor [[Thomas Rattigan]] in 1987 after a failed [[boardroom coup]]. The head of [[Blue Chip Electronics]], a former Commodore employee, described the company as "a well-known revolving door".<ref name="carroll19870501">{{cite news| last1 = Carroll| first1= Paul B.| date= May 1, 1987| url= https://www.proquest.com/docview/398082524/| title= Commodore's Gould Seizes the Spotlight| work= The Wall Street Journal| publisher= Dow Jones & Company| issn= 0099-9660| page= 1| via= ProQuest}}</ref> Commodore faced the problem when marketing the Amiga of still being seen as the company that made cheap computers like the C64 and VIC.<ref name="dvorak198509">{{cite news|url=https://archive.org/stream/Ahoy_Issue_21_1985-09_Ion_International_US#page/n3/mode/2up |title=Image |work=Ahoy! |date=September 1985 |access-date=June 27, 2014 |author=[[John C. Dvorak|Dvorak, John C.]] |page=5 |url-status=live |archive-url=https://web.archive.org/web/20160315050902/https://archive.org/stream/Ahoy_Issue_21_1985-09_Ion_International_US |archive-date=March 15, 2016 }}</ref><ref>{{cite web|url=http://www.technologizer.com/2010/07/23/amiga/ |title=Amiga: 25 Years Later |date=July 23, 2010 |url-status=live |archive-url=https://web.archive.org/web/20150101180504/http://www.technologizer.com/2010/07/23/amiga/ |archive-date=January 1, 2015 }}</ref> The C64 remained the company's [[cash cow]] but its technology was aging.{{r|carroll19870501}} By the late 1980s, the personal computer market had become dominated by the IBM PC and [[Apple Macintosh]] platforms. Commodore's marketing efforts for the Amiga were less successful in breaking the new computer into an established market compared to the success of its 8-bit line. The company put effort into developing and promoting consumer products that would not be in demand for years, such as an [[Amiga 500]]-based [[HTPC]] called [[CDTV]].

[[File:Commodore C286-LT laptop (1).jpg|thumb|Commodore C286-LT (1990)]]
As early as 1986, the mainstream press was predicting Commodore's demise,<ref>{{cite news|url=http://www.time.com/time/magazine/article/0,9171,960694-1,00.html |title=Adios, Amiga? |magazine=Time |date=February 24, 1986 |url-status=dead |archive-url=https://web.archive.org/web/20111204030018/http://www.time.com/time/magazine/article/0%2C9171%2C960694-1%2C00.html |archive-date=December 4, 2011 }}</ref> and in 1990 ''Computer Gaming World'' wrote of its "abysmal record of customer and technical support in the past".<ref name="cgw19900708">{{cite news|url=http://www.cgwmuseum.org/galleries/index.php?year=1990&pub=2&id=73 |title=The Maturation of Computer Entertainment: Warming The Global Village |magazine=Computer Gaming World |date=July 8, 1990 |access-date=November 16, 2013 |page=11 |url-status=live |archive-url=https://web.archive.org/web/20131203063559/http://www.cgwmuseum.org/galleries/index.php?year=1990&pub=2&id=73 |archive-date=December 3, 2013 }}</ref> Nevertheless, as profits and the stock price began to slide, ''The Philadelphia Inquirer's'' Top 100 Businesses Annual continued to list several Commodore executives among the highest-paid in the region and the paper documented the company's questionable hiring practices and large bonuses paid to executives amid shareholder discontent.<ref>{{cite web|url=http://articles.philly.com/1990-11-02/business/25929550_1_irving-gould-proxy-statement-mehdi-ali |title=Pay Went Up As Profits Plunged Proxy Reveals Big Salaries At Commodore |url-status=dead |archive-url=https://web.archive.org/web/20150112171447/http://articles.philly.com/1990-11-02/business/25929550_1_irving-gould-proxy-statement-mehdi-ali |archive-date=January 12, 2015 }}</ref><ref>{{cite web|url=http://articles.philly.com/1989-11-03/business/26140777_1_thomas-rattigan-irving-gould-commodore |title=Executive Benefits Questioned Commodore Hurting, But Officials Aren't |quote=Ali's minimum $2 million annual combined salary and bonus will certainly earn him a place among the most richly rewarded technology company executives in the country. |url-status=dead |archive-url=https://web.archive.org/web/20150112171702/http://articles.philly.com/1989-11-03/business/26140777_1_thomas-rattigan-irving-gould-commodore |archive-date=January 12, 2015 }}</ref>

[[File:Commodore PC20.jpg|thumb|Commodore PC20 (1992)]]

Commodore failed to update the Amiga to keep pace as the PC platform advanced.<ref>{{cite web|url=http://lowendmac.com/orchard/06/amiga-origin-commodore.html |title=The Amiga Story: Conceived at Atari, Born at Commodore |quote=Commodore began to falter in the early 90s as Windows PCs became more advanced. The multimedia features that wowed audiences in 1985 were commonplace in inexpensive computers of the early 90s. |url-status=live |archive-url=https://web.archive.org/web/20150112181517/http://lowendmac.com/orchard/06/amiga-origin-commodore.html |archive-date=January 12, 2015 }}</ref> CBM continued selling the [[Amiga 2000]] with 7.14&nbsp;MHz [[Motorola 68000|68000]] CPUs, even though the [[Amiga 3000]] with its 25&nbsp;MHz [[68030]] was on the market. Apple, by this time, was using the [[Motorola 68040|68040]] and had relegated the 68000 to its lowest-end model, the black and white [[Macintosh Classic]]. The 68000 was used in the [[Sega Genesis]], one of the leading [[game consoles]] of the era,<ref>{{cite web|url=http://www.atarimagazines.com/compute/issue125/A32_Whats_hot_Amiga_or.php |title=What's hot: Amiga or Sega? |quote=Still, Amiga owners could take consolation in the fact that their system played the best games around. But that's no longer the case. New videogame systems, NEC TurboGrafix, and SNK's NeoGeo--have surpassed the Amiga as a game machine. Another up-and-comer, the Nintendo SFX (known in Japan as the SuperFamicom), will blow it away. Meanwhile, after seven years, the Amiga still has the same palette, the same eight sprites, and the same four audio voices. |url-status=live |archive-url=https://web.archive.org/web/20150112200456/http://www.atarimagazines.com/compute/issue125/A32_Whats_hot_Amiga_or.php |archive-date=January 12, 2015 }}</ref> Computers fitted with high-color [[Video Graphics Array|VGA]] [[graphics card]]s and [[SoundBlaster]] (or compatible) [[sound card]]s had also caught up with the Amiga's performance,<ref>{{cite web|url=http://www.amigareport.com/ar132/p1-8.html |title=Taking the PC Plunge! |url-status=live |archive-url=https://web.archive.org/web/20141228232121/http://amigareport.com/ar132/p1-8.html |archive-date=December 28, 2014 }}</ref><ref>{{cite web|url=https://arstechnica.com/gadgets/2013/04/a-history-of-the-amiga-part-9-the-demo-scene/2/ |title=A history of the Amiga Part 8: The demo scene |date=April 29, 2013 |url-status=live |archive-url=https://web.archive.org/web/20170704093424/https://arstechnica.com/gadgets/2013/04/a-history-of-the-amiga-part-9-the-demo-scene/2/ |archive-date=July 4, 2017 }}</ref> and Commodore began to fade from the consumer market.<ref>{{cite web|url=https://www.ischool.utexas.edu/~wyllys/multmed/mm03.html|title=MULTIMEDIA AND TELECOMMUNICATIONS, 1997-2002:PERSPECTIVES AND RECOMMENDATIONS.}}</ref>

Although the Amiga was originally conceived as a gaming machine, Commodore had always emphasized the Amiga's potential for professional applications,<ref>{{cite web|url=https://books.google.com/books?id=LxMCAAAAMBAJ&pg=PA15 |title=Looks great, Manny, but will it sell? |date=August 5, 1985 |url-status=live |archive-url=https://web.archive.org/web/20150514005820/https://books.google.com/books?id=LxMCAAAAMBAJ&pg=PA15&lpg=PA15 |archive-date=May 14, 2015 }}</ref><ref>{{cite news|url=https://www.nytimes.com/1985/07/30/science/peripherals-commodore-introduces-new-amiga.html |title=PERIPHERALS; COMMODORE INTRODUCES NEW AMIGA |work=The New York Times |date=July 30, 1985 |quote=...as a new, untested machine from a company that has previously sold its products in toy stores, Amiga faces a tough challenge in cracking the conservative business market. Commodore officials vow that Amiga is the flagship of an armada of business products that will transform the company into a major international technological force. |url-status=live |archive-url=https://web.archive.org/web/20161023061020/http://www.nytimes.com/1985/07/30/science/peripherals-commodore-introduces-new-amiga.html |archive-date=October 23, 2016 | url-access=limited|last1=Lewis |first1=Peter H. }}</ref> but the Amiga's high-performance sound and graphics were irrelevant to [[MS-DOS]]-based routine business word-processing and data-processing requirements, and the machine could not successfully compete with computers in a business market that was rapidly undergoing [[commoditization]]. Commodore introduced a range of [[Commodore PC compatible systems|PC compatible systems]] designed by its German division, and while the Commodore name was better known in the US than some of its competition, the systems' price and specifications were only average.<ref>{{cite web|url=https://archive.org/stream/run-magazine-42/Run_Issue_42_1987_Jun#page/n29/mode/2up |title=RUN Magazine issue 42 |date=June 1987 |url-status=live |archive-url=https://web.archive.org/web/20160403030408/https://archive.org/stream/run-magazine-42/Run_Issue_42_1987_Jun |archive-date=April 3, 2016}}</ref>

Sales of the PC range were strong in Germany, however, seeing Commodore acquire a 28% share of this market segment in 1990, second only to [[IBM]].<ref name="amigauser199508_escom">{{ cite magazine | url=https://archive.org/details/amiga-user-international-vol-9-8/page/n4/mode/1up | title=The Men from ESCOM | magazine=Amiga User International | date=August 1995 | access-date=19 August 2024 | last1=Jacobson | first1=Antony | last2=Blackham | first2=Mark | pages=5, 16–18 }}</ref> Things were less rosy in the United States, where Commodore had a 6% share in the market segment as of 1989, down from 26% in 1984. ''[[Forbes]]''<nowiki/>'s Evan McGlinn wrote regarding the firm's decline, citing management as the source cause: "the absentee-landlord management style of globe-trotting chairman and chief executive Irving Gould."<ref name=":5" /> With the Amiga only representing less than 20% of the company's sales in the 1987 fiscal year, product lines such as PC-compatibles and Commodore's 8-bit computers remained important to the company's finances even as the Amiga's share of total sales increased. In 1989, with the Amiga accounting for 45% of total sales, the PC business showed modest growth to 24% of total sales, and the Commodore 64 and 128 products still generated 31% of the company's revenues.<ref name="commodore1989">{{ cite book | url=https://archive.org/details/cil-1989-annual-report/page/n4/mode/1up | title=Commodore International Limited 1989 Annual Report | publisher=Commodore International Limited | date=7 August 1989 | access-date=19 August 2024 | pages=3 }}</ref>

Commodore attempted to develop new chipsets during the early 1990s, first the [[Advanced Amiga Architecture chipset|Advanced Amiga Architecture]] and later the [[Amiga Hombre chipset|Hombre]]. Funding problems meant that they did not materialize as ultimately the company would go bust. In 1992, the [[Amiga 600]] replaced the Amiga 500, which removed the numeric keypad, Zorro expansion slot, and other functionality, but added [[Integrated Drive Electronics|IDE]], [[PCMCIA]], and intended as a cost-reduced design. Designed as the Amiga 300, a non-expandable model to sell for less than the [[Amiga 500]], the 600 became a replacement for the 500 due to the unexpectedly higher cost of manufacture. Productivity developers increasingly moved to PC and Macintosh, while the [[console wars]] took over the gaming market. David Pleasance, managing director of Commodore UK,<ref>{{cite web|url=http://articles.philly.com/1994-09-01/business/25838657_1_amigas-commodore-international-newtek |title=A Multimedia Gem Commodore Is Dead. Long Live The Amiga. Suddenly, It's A Hot Item. |quote=David Pleasance, joint managing director of Commodore's United Kingdom subsidiary... |url-status=dead |archive-url=https://web.archive.org/web/20150112210928/http://articles.philly.com/1994-09-01/business/25838657_1_amigas-commodore-international-newtek |archive-date=January 12, 2015 }}</ref> described the Amiga 600 as a "complete and utter screw-up".<ref>Tim Smith and Chris Lloyd (1994), "Chewing the Facts", 'Amiga Format' Annual 1994, 106-111, 107.</ref> In the same year, Commodore released the Amiga 1200 and Amiga 4000 computers, which featured an improved graphics chipset, the [[Advanced Graphics Architecture|AGA]]. The advent of PC games using 3D graphics such as ''[[Doom (1993 video game)|Doom]]'' and ''[[Wolfenstein 3D]]'' spelled the end of Amiga as a gaming platform.<ref>{{cite book|url=https://books.google.com/books?id=z-blqZH2gWwC&pg=PA249 |title=The Future Was Here: The Commodore Amiga |isbn=9780262300742 |url-status=live |archive-url=https://web.archive.org/web/20150514002912/https://books.google.com/books?id=z-blqZH2gWwC&pg=PA249 |archive-date=May 14, 2015 |last1=Maher |first1=Jimmy |date=April 13, 2012 |publisher=MIT Press }}</ref><ref>{{cite web|url=http://www.natami.net/concept.htm|title=Natami Project Home Page|url-status=dead|archive-url=https://archive.today/20150118223918/http://www.natami.net/concept.htm|archive-date=January 18, 2015}}</ref>

[[File:Amiga-CD32-wController-L.jpg|thumb|Amiga CD32 (1993)]]
In 1993, Commodore launched a 32-bit [[CD-ROM]]-based [[game console]] called the [[Amiga CD32]], described as a 'make or break' system, according to Pleasance.<ref>{{cite web|url=https://archive.org/stream/amigashopper-magazine-46/AmigaShopper_46_Feb_1995_djvu.txt |title=Amiga Shopper Feb 1995 |date=February 1995 |url-status=live |archive-url=https://web.archive.org/web/20160401193354/https://archive.org/stream/amigashopper-magazine-46/AmigaShopper_46_Feb_1995_djvu.txt |archive-date=April 1, 2016}}</ref> The [[Amiga CD32]] was not sufficiently profitable to return Commodore to solvency, however this was not a universal opinion at Commodore, with Commodore Germany hardware expert Rainer Benda stating "The CD32 was a year late for Commodore. In other words, here, too, it might have been better to focus on the core business than jump on a console and hope to sell 300,000 or more units quickly to avoid bankruptcy."<ref>{{Cite web|title=Forum / Interview / Rainer Benda|url=http://www.amigagadget.de/45/f.int.rainerbenda.html|access-date=2020-06-21|website=Amigagadget.de}}</ref>

{{quote box
| align = left
| width = 25em
| quote = "Commodore's high point was the Amiga 1000 (1985). The Amiga was so far ahead of its time that almost nobody--including Commodore's marketing department--could fully articulate what it was all about. Today, it's obvious the Amiga was the first multimedia computer. Still, in those days, it was derided as a game machine because few people grasped the importance of advanced graphics, sound, and video. Nine years later, vendors are still struggling to make systems that work like 1985 Amigas."
| source = —&nbsp;''[[Byte Magazine]],'' August 1994
}}

In 1992, all UK servicing and warranty repairs were outsourced to [[Wang Laboratories]],{{citation needed|date=September 2014}} which was replaced by [[International Computers Limited|ICL]] after failing to meet repair demand during the Christmas rush in 1992.<ref>CTW August 16, 1993</ref> Commodore International's Canadian subsidiary authorized [[3D Microcomputers]] of Ontario to manufacture IBM PC clones with the Commodore brand in late 1993.<ref name="Staff_writer1993">{{cite journal | last=Staff writer | date=December 27, 1993 | url=https://www.proquest.com/docview/202749411/ | title=3D to make, distribute DOS-based Commodores | journal=Computer Dealer News | publisher=Plesman Publications | volume=9 | issue=26 | page=2 | via=ProQuest}}</ref> Commodore exited the IBM PC clone market entirely during the 1993 fiscal year, citing the low profitability of this market. PC sales had remained relatively stable and, accounting for 37% of revenue from sales in 1993, had grown modestly as declines in both unit sales and revenues were recorded for the Amiga and Commodore 64 product lines.<ref name="commodore1993">{{ cite book | url=https://archive.org/details/commodore-annual-report-1993/page/n3/mode/1up | title=Commodore International Limited 1993 Annual Report | publisher=Commodore International Limited | date=17 December 1993 | access-date=17 November 2024 | pages=2 }}</ref>

By 1994, only Commodore's operations in Canada,<ref name=Staff_writer1994a>{{cite journal | last=Staff writer | date=April 20, 1994 | url=https://www.proquest.com/docview/202752243/ | title=Commodore's financial woes leave it facing uncertain future | journal=Computer Dealer News | publisher=Plesman Publications | volume=10 | issue=8 | page=6 | via=ProQuest}}</ref> Germany, and the United Kingdom were still profitable.{{citation needed|date=April 2022}} Commodore announced voluntary bankruptcy and [[liquidation]] on April 29, 1994,<ref>{{cite journal | last=Schofield | first=Jack | date=May 5, 1994 | url=https://www.proquest.com/docview/293408265/ | title=Adios Amiga? Commodore is going into voluntary liquidation. Will its products survive? | journal=The Guardian | publisher=Guardian Newspapers | via=ProQuest}}</ref><ref>{{cite news | last=Burgess | first=John | date=May 9, 1994 | url=https://www.washingtonpost.com/archive/business/1994/05/09/adios-amiga-and-commodore/eb099967-0bc6-47bd-aac5-b0068ac58a23/ | title=Adios, Amiga and Commodore: From a Bang to a Whimper, PC Maker Closes Its Doors | newspaper=The Washington Post | page=F17}}</ref> causing the board of directors to "authorize the transfer of its assets to trustees for the benefit of its creditors", according to an official statement.<ref>{{cite magazine|title=Commodore Sinks|magazine=[[GamePro]]|issue=60|publisher=[[International Data Group|IDG]]|date=July 1994|page=168}}</ref> With Commodore International having reported a {{nowrap|$8.2 million}} quarterly loss in the US, hopes were expressed that European divisions might be able to continue trading and even survive the demise of the parent company, with a management buyout considered a possibility. Other possibilities included the sale of profitable parts of the company to other parties, with [[Philips]] and [[Samsung]] considered "likely choices". However, no sale was ever completed.<ref name="pcw199407_commodore">{{ cite magazine | title=Commodore International goes into voluntary liquidation | magazine=Personal Computer World | date=July 1994 | last1=Magee | first1=Mike | pages=214 }}</ref>