Editing IBM PCjr (section)

==History==
IBM's first home computer was the PC, released in 1981. Within two years the PC had created a large new ecosystem of hardware and software, nearly leading the home computer market<ref name="pollack19830327">{{Cite news |last=Pollack |first=Andrew |url=https://www.nytimes.com/1983/03/27/business/big-ibm-has-done-it-again.html |title=Big I.B.M. Has Done It Again |date=1983-03-27 |work=The New York Times |access-date=2020-03-16 |page=Section 3, Page 1 |language=en-US |issn=0362-4331}}</ref><ref name="ap19831102">{{cite news | url=https://www.newspapers.com/clip/3360529// | title=Analysts say: IBM's PCjr won't disrupt Christmas for competitors | work=Santa Cruz Sentinel | date=November 2, 1983 | agency=Associated Press | access-date=October 6, 2015 | pages=B-5}}</ref>{{r|nyt19831102}}<ref name="time19831107">{{cite magazine|url=http://www.time.com/time/magazine/article/0,9171,949869,00.html |archive-url=https://web.archive.org/web/20081122161630/http://www.time.com/time/magazine/article/0%2C9171%2C949869%2C00.html |archive-date=November 22, 2008 |title=D-Day for the Home Computer |access-date=February 23, 2011 |author1=Moritz, Michael |author2=John Greenwald |author3=Frederick Ungeheuer |date=November 7, 1983 |magazine=Time |url-status=dead }}</ref> with 26% of all microcomputers sold in 1983, second only to the much less expensive [[Commodore 64]].<ref name="reimer20091102">{{cite web | url=http://www.jeremyreimer.com/postman/node/329 | title=Total Share: Personal Computer Market Share 1975–2005 | access-date=March 15, 2011 | author=Reimer, Jeremy | date=November 2, 2009 | publisher=Jeremy Reimer's Blog}}</ref>

For a year before the PCjr's announcement, the computer industry discussed rumors of a new IBM product, code named "Peanut", that would repeat the PC's success. The rumors described Peanut as a home computer with {{val|64|u=kB}} of memory that would be [[IBM PC compatible]], benefit from IBM's service network and, at {{US$|600}} to {{US$|lang=no|1000}}, be less expensive than the [[Apple IIe]]. IBM repeatedly denied these rumors,<ref name="byte198311">{{cite news|author=Curran, Lawrence J.|last2=Shuford, Richard S.|date=November 1983|title=IBM's Estridge|pages=88–97|work=BYTE|url=https://archive.org/stream/byte-magazine-1983-11/1983_11_BYTE_08-11_Inside_the_IBM_PC#page/n89/mode/2up|access-date=March 19, 2016}}</ref>{{r|time19831107}}<ref name="maceiie19840409" />{{r|time19850401}} but customers visited stores attempting to buy the product and rivals' revenue, product plans, and share prices reacted to the officially nonexistent computer in what the press called "Peanut Panic" or "The Great Peanut Roast".{{r|pollack19830327}}<ref name="pollack19830619">{{cite news | url=https://www.nytimes.com/1983/06/19/business/the-coming-crisis-in-home-computers.html?pagewanted=all | title=The Coming Crisis in Home Computers | work=The New York Times | date=June 19, 1983 | access-date=January 19, 2015 | author=Pollack, Andrew}}</ref><ref name="greenwald19830711">{{Cite magazine |last=Greenwald |first=John |date=1983-07-11 |title=The Colossus That Works |url=http://content.time.com/time/magazine/article/0,9171,949693-2,00.html |url-status=live |url-access=subscription | magazine=TIME |archive-url=https://web.archive.org/web/20080514004334/http://www.time.com/time/magazine/article/0,9171,949693-2,00.html |archive-date=2008-05-14 |access-date=2019-05-18}}</ref>

By September 1983, books and magazine articles on Peanut were ready for publishing, with only a few changes needed once the still officially nonexistent computer appeared. Software companies prepared to market products as "Peanut compatible" with the computer of which, rumors said, IBM would produce 500,000 units in the first year. ''[[Adweek]]'' estimated that IBM would spend {{US$|long=no|75 million}} on marketing, including an alleged license of [[Charles Schulz]]'s [[Peanuts]] characters. ''Smalltalk'' magazine in August published a detailed article on the computer, stating that it would cost {{US$|long=no|600}} plus {{US$|long=no|400}} for a disk drive, use a color TV as a display, and have a standard typewriter keyboard.<ref name="esd19830927">{{Cite news |last=Sandberg-Diment |first=Erik |url=https://www.nytimes.com/1983/09/27/science/personal-computers-is-the-ibm-peanut-really-in-the-wings.html |title=Personal Computers; Is the I.B.M. Peanut Really in the Wings? |date=September 27, 1983 |work=The New York Times |access-date=December 14, 2017 |page=C5 |language=en-US |issn=0362-4331}}</ref>

===Announcement===
IBM announced the PCjr on November 1, 1983, at its [[590 Madison Avenue|New York City headquarters]] with an enormous amount of advance publicity, including live news coverage of the event.<ref name="ruby198402" /><ref name="halfhill198401">{{cite news | url=https://archive.org/stream/1984-01-compute-magazine/Compute_Issue_044_1984_Jan#page/n45/mode/2up | title=IBM's New PCjr | work=Compute! | date=January 1984 | access-date=October 30, 2013 | author=Halfhill, Tom R. | pages=44}}</ref>

Experts predicted, according to ''[[The Washington Post]]'', that the PCjr would "quickly become the standard by which all other home computers are measured"<ref name="wp19831106">{{cite news | url=https://www.newspapers.com/clip/3360554// | title=IBM PCjr leads the way for industry | work=The Pantagraph | date=November 6, 1983 | agency=The Washington Post | access-date=October 6, 2015 | pages=E6}}</ref> and estimated sales of one million or more in 1984,<ref name="pollack19831102">{{cite news | url=https://www.nytimes.com/1983/11/02/business/the-debut-of-ibm-s-junior.html?pagewanted=all | title=The Debut of I.B.M.'S Junior | access-date=February 25, 2011 | author=Pollack, Andrew | date=November 2, 1983 | work=The New York Times}}</ref> expecting the PCjr to change the home-computer market in a similar way to how the IBM PC had changed the business-microcomputer market.<ref name="ruby198402" /><ref name="mccarroll19841224">{{cite magazine|author1=McCarroll, Thomas|author2=Philip Elmer-DeWitt|date=December 24, 1984|title=A Flop Becomes a Hit|magazine=Time|url=http://www.time.com/time/magazine/article/0,9171,951424,00.html|url-status=dead|access-date=February 23, 2011|archive-url=https://web.archive.org/web/20090514070332/http://www.time.com/time/magazine/article/0%2C9171%2C951424%2C00.html|archive-date=May 14, 2009}}</ref>{{r|halfhill198401}} They predicted that the PCjr would extend IBM's dominance, with customers able to use the company's computers in the home and in the office.<ref name="burton198303">{{cite news | url=https://books.google.com/books?id=7wCiNAUEuAMC | title=Anatomy of a Colossus, Part III | work=PC | date=Mar 1983 | access-date=March 30, 2014 | author=Burton, Kathleen | pages=467}}</ref>{{r|nyt19831102}}{{r|wp19831106}} [[Texas Instruments]] left the market four days before IBM's announcement, after losing {{US$|223 million}} in nine months against Commodore{{r|ap19831102}}{{r|time19831107}}<ref name="maceti19831121">{{cite news | url=https://books.google.com/books?id=uy8EAAAAMBAJ&q=ibm+peanut&pg=PA22 | title=TI retires from home-computer market | access-date=February 25, 2011 | author=Mace, Scott | date=November 21, 1983 | work=InfoWorld | pages=22, 27}}</ref> by selling its [[TI-99/4A|99/4A]] for as low as {{US$|long=no|99}}.<ref name="cook19840306">{{cite news | url=https://books.google.com/books?id=ZhoP0KRkQe4C | title=Jr. Sneaks PC into Home | work=PC Magazine | date=March 6, 1984 | access-date=October 24, 2013 | author=Cook, Karen | pages=35}}</ref>

Developers began creating PCjr software in 1982.{{r|maher20130718}} [[Sierra On-Line]], [[Software Publishing Corporation|SPC]], and [[The Learning Company]] were among those that produced games, productivity, and educational software as [[Launch game|launch titles]],{{r|pollack19831102}}{{r|wiswell19840124}} using detailed IBM production outlines{{r|rosenberg19840424}} <ref name="sanger19840422">{{Cite news |url=https://www.nytimes.com/1984/04/22/business/the-heady-world-of-ibm-suppliers.html |title=The Heady World of I.B.M. Suppliers |last=Sanger |first=David E. |date=April 22, 1984 |work=The New York Times |access-date=July 2, 2017 | page=Section 3, Page 1 |language=en-US |issn=0362-4331 |author-link=David E. Sanger}}</ref> under a policy of strictly enforced security.<ref name="rosenberg19840424">{{Cite news |title=The Secret World of IBM |last=Rosenberg |first=Ronald |date=April 24, 1984 |work=The Boston Globe}}</ref>

The PCjr's graphics and sound features were superior to the PC's,{{r|nortonpcjraudio19840124}}{{r|shea19840312}}{{r|pollack19831102}} and ''PC Magazine'' speculated that "the PCjr might be the best game machine ever designed".<ref name="wiswell19840124">{{cite news | url=https://books.google.com/books?id=kSzKzjWHeVEC&pg=PA142 | title=Coming Soon: Games For The PCjr | work=PC | date=January 24, 1984 | access-date=January 26, 2015 | author=Wiswell, Phil | pages=142–145}}</ref> Prominent among launch titles was Sierra's [[graphical adventure]] ''[[King's Quest I]]'', much of whose {{US$|long=no|850000}} budget was paid by IBM.<ref name="maher20130718">{{cite web | url=http://www.filfre.net/2013/07/the-unmaking-and-remaking-of-sierra-on-line/ | title=The Unmaking and Remaking of Sierra On-Line | publisher=The Digital Antiquarian | date=July 18, 2013 | access-date=February 5, 2015 | author=Maher, Jimmy}}</ref>

=== Release and reception ===
[[File:PCjr chiclet.gif|thumb|right|300px|The PCjr's chiclet keyboard was unpopular.<ref name="sandler19840221">{{cite news |url=https://books.google.com/books?id=UCIvSU6Y2GAC |title=A Secret Inside The ROM |work=PC Magazine |date=February 21, 1984 |access-date=October 24, 2013 |author=Sandler, Corey |pages=323}}</ref>]]

The PCjr was released in March 1984, missing the 1983 Christmas sales season due to production delays.<ref name="nyt19831102">{{cite news |url=https://www.nytimes.com/1983/11/02/business/ibm-s-speedy-redirection.html |title=I.B.M.'S Speedy Redirection |access-date=February 25, 2011 |date=November 2, 1983 |work=The New York Times}}</ref>{{r|marcom19840222}}{{r|time19840402}}{{r|time19850401}}

Even prior to release, anticipation of the machine was mixed. [[Ziff Davis]], publisher of the successful ''PC Magazine'', printed the first issue of ''PCjr Magazine'' before the first units shipped, and competing [[computer magazine]]s included ''Peanut'', ''PCjr World'',<ref name="nyt19831109">{{cite news |url=https://www.nytimes.com/1983/11/09/business/boom-in-computer-magazines.html |title=Boom in Computer Magazines |access-date=February 25, 2011 |date=November 9, 1983 |work=The New York Times }}</ref> ''jr'', and ''[[Compute!]] for the PC and PCjr''.<ref name="bartimo19841210">{{cite news |url=https://books.google.com/books?id=si4EAAAAMBAJ&pg=PA35 |title=Magazines Woo Users |access-date=March 14, 2011 |author=Bartimo, Jim |date=December 10, 1984 |pages=35–36 |work=InfoWorld}}</ref> However, as new information became available about the machine, retailers became deeply concerned about its marketability.<ref name="dvorak19831128">{{cite news |url=https://books.google.com/books?id=sy8EAAAAMBAJ |title=Inside Track |work=InfoWorld |date=November 28, 1983 |access-date=March 23, 2016 |author=Dvorak, John C. |pages=188}}</ref>

When the PCjr became widely available in March 1984<ref name="freiberger19840109_16">{{cite news |url=https://books.google.com/books?id=ey4EAAAAMBAJ |title=IBM indicates March as likely PCjr delivery date |work=InfoWorld |date=January 9–16, 1984 |access-date=February 4, 2015 |author=Freiberger, Paul |pages=20}}</ref> sales were below expectations. Consumer interest was reportedly high until demonstration machines were available, at which point interest dropped steeply.{{r|marcom19840222}} Dealers reported that consumers disliked the price, keyboard, and limited memory,{{r|nyt19840420}} and retailers that sold primarily to business customers did not know how to market it.<ref name="mcmullen19840221">{{cite news |url=https://books.google.com/books?id=UCIvSU6Y2GAC&pg=PA120 |title=Apple Charts The Course For IBM |work=PC Magazine |date=1984-02-21 |access-date=24 October 2013 |author=McMullen, Barbara E. and John F. |page=122}}</ref>

The press soon reported that the PCjr could embarrass IBM, with executives reportedly worrying about demand. Stores began discounts while vendors slowed plans to release products.{{r|richter19840328}}<ref name="zientara19840409" /><ref name="sanger19840517">{{cite news |url=https://www.nytimes.com/1984/05/17/business/ibm-s-problems-with-junior.html?pagewanted=all |title=I.B.M.'s Problems with Junior |access-date=February 25, 2011 |author=Sanger, David E. |date=May 17, 1984 |newspaper=The New York Times}}</ref> IBM admitted that demand for the PCjr was not growing as rapidly as expected.<ref name="nyt19840420">{{Cite news |url=https://www.nytimes.com/1984/04/20/business/pcjr-sales-less-than-expected.html |title=PCjr Sales Less Than Expected |date=1984-04-20 |work=The New York Times |access-date=2020-03-11 |page=D3 |language=en-US |issn=0362-4331}}</ref> By May 1984 it had only sold 10,000 units, while other companies were reported to be slow in developing software for the system.<ref>{{cite magazine |title=IBM's Peanut getting lukewarm response |magazine=MicroTimes |publisher=BAM Publications Inc. |volume=1 |issue=1 |date=May 1984 |page=5}}</ref>

In response to the surprising lack of interest, IBM began early discounts of up to {{US$|370}}<ref name="winter19850324">{{cite news |url=http://archives.chicagotribune.com/1985/03/24/page/79/article/behind-the-short-unhappy-life-of-ibms-junior |title=Behind the short, unhappy life of IBM's Junior |work=Chicago Tribune |date=March 24, 1985 |access-date=April 29, 2015 |author=Winter, Christine |pages=Section 7, Page 3}}</ref> in June, lowering the two models' prices to {{US$|long=no|599}} and {{US$|long=no|999}},<ref name="bulman19841105">{{Cite news |url=http://www.newspapers.com/clip/31277231/fort_lauderdale_news/ |title=Big time: IBM skillfully revives lackluster sales of PCjr |last=Bulman |first=Philip |date=1984-11-05 |work=Fort Lauderdale News |access-date=2019-05-05 |page=47 |language=en}}</ref> but many of its dealers could not sell their initial shipments of 25 computers each.{{r|marcom19840222}}{{r|bulman19841105}} IBM allowed them to postpone paying for inventory for 180 days,<ref name="pollack19850120">{{Cite news |url=https://www.nytimes.com/1985/01/20/business/the-daunting-power-of-ibm.html |title=The Daunting Power of I.B.M. |last=Pollack |first=Andrew |date=January 20, 1985 |work=The New York Times |access-date=July 3, 2017 |page=A1 |language=en-US |issn=0362-4331}}</ref> but inventory continued to pile up.<ref name="time19840402">{{cite magazine|url=http://www.time.com/time/magazine/article/0,9171,954205-2,00.html |archive-url=https://web.archive.org/web/20080609012541/http://www.time.com/time/magazine/article/0%2C9171%2C954205%2C00.html |archive-date=June 9, 2008 |title=The Peanut Meets the Mac |access-date=February 23, 2011 |author1=McCarroll, Thomas |author2=Michael Moritz |author3=Philip Elmer-DeWitt |date=April 2, 1984 |magazine=Time |url-status=dead }}</ref> By August the PCjr was being described as a flop.<ref name="mace19840813">{{cite news |url=https://books.google.com/books?id=GS8EAAAAMBAJ&pg=PA38pg |title=PCjr: Back to Basics |work=InfoWorld |date=August 13, 1984 |access-date=January 13, 2015 |author=Mace, Scott |pages=38}}</ref><ref name="mccarroll19841224" />

In 2006 [[PCWorld]] ranked the IBM PCjr as 13th "worst tech products of all time".<ref>{{cite web |url=https://www.pcworld.com/article/535838/worst_products_ever.html |title=The 25 Worst Tech Products of All Time |first=Dan |last=Tynan |publisher=[[PCWorld]] |accessdate=2025-03-16 |date=2006-05-26}}</ref>

=== Issues ===
One of the most significant complaints about the PCjr was its chiclet keyboard,{{r|pollack19831102}}{{r|sanger19840422}} which was described as unsuitable for serious typing{{r|pollack19831102}} and "nearly useless."<ref name="nyt19840821">{{cite news | url=https://www.nytimes.com/1984/08/21/science/personal-computer-keyboard-is-a-stroke-of-genius.html | title=Keyboard is a Stroke of Genius | work=The New York Times | date=August 21, 1984 | access-date=July 31, 2014 | author=Sandberg-Diment, Erik}}</ref> The lack of direct function keys was a pain point for word processing.{{r|dickinsondw19840918}}

==== Cost ====
The PCjr's cost was its biggest disadvantage, even more so than the keyboard.<ref name="time19840402" /> The price point was perceived as too high for a home computer, but not powerful enough for a business machine.{{r|marcom19840222}} IBM's lack of clear messaging on their target market (home, schools, or executives working at home) made it difficult for software developers, consumers,<ref name="wierzbicki19831219">{{cite news | url=https://books.google.com/books?id=5C8EAAAAMBAJ | title=Developers embrace PCjr despite drawbacks | access-date=February 25, 2011 | author=Wierzbicki, Barbara | date=December 19, 1983 | work=InfoWorld}}</ref>{{r|ap19850321}} and dealers{{r|mcmullen19840221}} to prepare for the product. The price point was perceived as targeting a market that did not exist.{{r|sanger19840517}} IBM was surprised to learn that many of the initial customers for the PCjr were not home users as they assumed, but instead businesses who wanted a cheaper PC that took less space on a desk.

IBM failed to recognize that many consumers wanted a computer more sophisticated than those that cost less than {{US$|long=no|500}}, but did not want to spend more than {{US$|long=no|1000}}.{{r|ap19850321}} The PCjr offered no compelling reason to spend that much.<ref name="rosenberg19840228">{{Cite news |title=Doubts Raised About PCjr |last=Rosenberg |first=Ronald |date=February 28, 1984 |work=The Boston Globe}}</ref> The PCjr cost more than twice as much as the C64 and the [[Atari 8-bit computers]], while inferior to both for videogames.{{r|pollack19831102}}{{r|lima19841203}} Spinnaker, a game developer, stated that they discontinued development for the PCjr when they learned of the actual price.<ref name="ap19850321">{{Cite news |url=https://www.newspapers.com/clip/31243737/poughkeepsie_journal/ |title=The runner stumbles: IBM pulls back from troubled PCjr |date=1985-03-21 |work=Poughkeepsie Journal |access-date=2019-05-05 |agency=Associated Press |page=7 |language=en}}</ref>

Consumers were reportedly much more excited about the also-new [[Macintosh 128K]], which was more sophisticated but only cost {{US$|300}} more, with accessories and software.{{r|time19840402}}<ref name="marcom19840222">{{cite news | url=https://www.newspapers.com/clip/3360489// | title=IBM's PCjr receives a cool reception | work=Santa Cruz Sentinel | date=February 22, 1984 | agency=Wall Street Journal | access-date=October 6, 2015 | author=Marcom, John Jr. | pages=B-5}}</ref> The Macintosh reportedly outsold the IBM product during their first two months on the market.<ref name="richter19840328">{{Cite news |url=http://www.newspapers.com/clip/31276226/the_cincinnati_enquirer/ |title=Macintosh Takes Lead In Sales Race |last=Richter |first=Paul |date=1984-03-28 |work=The Cincinnati Enquirer |access-date=2019-05-05 |agency=Los Angeles Times |pages=B-1, B-2 |language=en}}</ref> The PCjr's price was close to that of the Coleco Adam, but the Adam also included a [[tape drive]], a printer, and software.{{r|time19831107}} A realistic cost including peripherals was {{US$|long=no|2000}}<ref name="esd19831227">{{Cite news |url=https://www.nytimes.com/1983/12/27/science/personal-computers-the-little-ibm-finally-arrives-for-a-test.html |title=Personal Computers: The Little I.B.M. Finally Arrives for a Test |last=Sandberg-Diment |first=Erik |date=December 27, 1983 |work=The New York Times |access-date=July 2, 2017 |language=en-US |issn=0362-4331}}</ref>{{r|levy198501}} and other configurations cost $3,000 or more.<ref name="ruby198402">{{cite news | url=https://books.google.com/books?id=nQAAAAAAMBAJ&q=peanut+ibm+pcjr&pg=PA68 | title=IBM's PCjr&mdash;was it worth the wait? | access-date=February 24, 2011 | author=Ruby, Daniel | date=February 1984 | work=Popular Science | pages=68–71}}</ref><ref name="manes19850528">{{cite news | url=https://books.google.com/books?id=DDlmJxSURq8C | title=Junior and Edsel: Two of A Kind Together At Last! | work=PC Magazine | date=1985-05-28 | access-date=28 October 2013 | author=Manes, Stephen | pages=67}}</ref>{{r|levy198501}}

The IIe was the PCjr's most direct competition.{{r|richter19840328}}{{r|zientara19840409}}<ref name="ryan198407">{{Cite magazine |last=Ryan |first=Bob |date=July 1984 |title=The newest member of the family goes head to head with the PCjr. |url=https://archive.org/stream/inCider_84-07#page/n59/mode/2up |magazine=InCider |pages=60–63}}</ref> Although the PC outsold it{{r|maceiie19840409}} Apple sold almost 110,000 units in December 1983, in part to customers who had waited until details of the PCjr became available.<ref name="pollack19840116">{{Cite news |url=https://www.nytimes.com/1984/01/16/business/apple-expands-product-line.html |title=Apple Expands Product Line |last=Pollack |first=Andrew |date=January 16, 1984 |work=The New York Times |access-date=July 2, 2017 |language=en-US |issn=0362-4331}}</ref> Apple estimated that 80% of its dealers sold IBM and Apple computers, and many visitors who were disappointed by the PCjr, or curious about the Macintosh, reportedly left with a IIe instead. The latter was so popular that a shortage occurred in early 1984.<ref name="maceiie19840409">{{cite news | url=https://books.google.com/books?id=jC4EAAAAMBAJ&pg=PA54 | title=Apple IIe Sales Surge as IIc is Readied | work=InfoWorld | date=April 9, 1984 | access-date=February 4, 2015 | author=Mace, Scott | pages=54–55}}</ref>

The {{US$|669}} PCjr model compared favorably to a {{US$|long=no|1400}} IIe also with {{val|64|u=kB}} and no floppy drive,<ref name="pollack19831102" />{{r|wierzbicki19831219}} but Apple lowered their computer's price<ref name="time19840402" /> as part of a "Starter System" package, with monitor and floppy drive, to a price as low as {{US$|long=no|1300}},{{r|maceiie19840409}} plus a 30% discount for the important education market.<ref name="infoworld19831121">{{cite news | url=https://books.google.com/books?id=uy8EAAAAMBAJ&q=ibm+peanut&pg=PA21 | title=Industry reacts to PCjr | access-date=February 25, 2011 |author1=Mace, Scott |author2=Paul Freiberger | date=November 21, 1983 | pages=21–22 | work=InfoWorld}}</ref> In April 1984 Apple introduced the [[Apple IIc]], a portable version with a more compact form factor, {{val|128|u=kB}} of RAM, and a floppy drive. Although the PCjr's CPU was superior, the IIc—which Apple did not describe as a home computer, to avoid the "game machine" connotation—had an excellent keyboard and was compatible with the Apple II's enormous software library.<ref name="winter19840424">{{cite news | url=http://archives.chicagotribune.com/1984/04/24/page/37/article/apple-aiming-to-take-bite-out-of-ibm | title=Apple aiming to take bite out of IBM | work=Chicago Tribune | date=April 24, 1984 | access-date=April 29, 2015 | author=Winter, Christine | pages=Section 3, Page 1}}</ref>{{r|sanger19840517}}<ref name="miller198407">{{cite news | url=http://www.atarimagazines.com/creative/v10n7/116_Apple_announces_the_IIc.php | title=Apple announces the IIc | access-date=March 17, 2011 | author=Miller, George A. | date=July 1984 | work=Creative Computing | pages=116}}</ref><ref name="ah08">{{cite web | url=http://apple2history.org/history/ah08/ | title=The Apple IIc | access-date=February 25, 2011 | work=Apple II History| date=June 23, 2010 }}</ref><ref name="hayes19840424">{{cite news | url=https://www.nytimes.com/1984/04/24/business/apple-is-banking-on-new-portable-the-iic-computer.html | title=Apple is Banking on New Portable: The IIc Computer | work=The New York Times | date=April 24, 1984 | access-date=January 5, 2015 | author=Hayes, Thomas C.}}</ref>

====Compatibility====
By early 1984, PC compatibility was vital for any new, non-Apple computer's success.<ref name="clapp19840227">{{cite news | url=https://books.google.com/books?id=gy4EAAAAMBAJ&pg=PA22 | title=PC compatibility | work=InfoWorld | date=February 27, 1984 | access-date=January 18, 2015 | author=Clapp, Doug | pages=22}}</ref> IBM had expected that most customers in the market would be new to computers, but 75% of the market were familiar with computers and wanted to run business software on the PCjr.<ref name="sanger19850707">{{Cite news |last=Sanger |first=David E. |url=https://www.nytimes.com/1985/07/07/magazine/the-changing-image-of-ibm.html |title=The Changing Image of I.B.M. |date=1985-07-07 |work=The New York Times |access-date=2020-03-11 |page=Section 6, Page 13 |language=en-US |issn=0362-4331}}</ref> An important market was executives who took data home to work on applications such as [[Lotus 1-2-3]] and Peanut had been rumored to be fully PC compatible,{{r|greenwald19830711}} so many customers visited stores believing that the PCjr could run most PC software.{{r|marcom19840222}}{{r|time19840402}}{{r|sanger19840517}}{{r|nyt19831102}}<ref name="gantz19831128">{{cite news | url=https://books.google.com/books?id=sy8EAAAAMBAJ | title=Heard on Tech Street | work=InfoWorld | date=November 28, 1983 | access-date=January 13, 2015 | author=Gantz, John | pages=186}}</ref>

IBM's intent was for the PCjr to be perceived as a unique platform, like most other home computers, and their documentation stated it was "a different computer than the PC", but with "a high level of programming compatibility."<ref name="ibm198311">{{cite book|url=https://archive.org/stream/IbmPcjrTechnicalReference#page/n317/mode/2up|title=IBM Personal Computer PCjr Hardware Reference Library / Technical Reference|publisher=IBM|year=1983|pages=4–1 to 4–11}}</ref> Nonetheless, potential customers perceived it as a variant of the PC, not a unique platform.<ref name="sanger19850118">{{cite news|author=Sanger, David E.|date=January 18, 1985|title=Computer Giant Finds Problems in Success|work=The New York Times|url=https://www.nytimes.com/1985/01/18/business/computer-giant-finds-problems-in-success.html?pagewanted=all|access-date=February 25, 2011}}</ref> While many PC applications would run, specific compatibility issues existed with software that used more than 128K of RAM or required more than one floppy disk drive.<ref name="pcnortonpcjrport">{{cite news | url=https://books.google.com/books?id=kSzKzjWHeVEC&pg=PA144 | title=Developing PCjr Software | work=PC Magazine | date=January 24, 1984 | access-date=October 23, 2013 | author=Norton, Peter | pages=144}}</ref>

Thousands of PC applications did require more than 128K of memory<ref name="diamond19840801">{{cite news | url=https://www.nytimes.com/1984/08/01/business/ibm-raises-dividend-offers-a-free-keyboard.html | title=I.B.M. Raises Dividend, Offers a Free Keyboard | work=The New York Times | date=1984-08-01 | access-date=4 February 2015 | author=Diamond, Stuart}}</ref> and two disk drives,{{r|esd19831227}}{{r|levy198501}} making the PCjr incompatible with about 60% of software by some measures, including the popular word-processing program [[WordStar]] and Lotus 1-2-3,<ref name="time19840402" /><ref name="mccarroll19841224" /> common applications used to test PC compatibility.<ref name="alsop19940131">{{cite news | url=https://books.google.com/books?id=AzsEAAAAMBAJ&q=%22flight+simulator%22&pg=PT1 | title=A public Windows pane to make compatibility clearer | access-date=February 28, 2011 | author=Alsop, Stewart | date=January 31, 1994 | work=InfoWorld | pages=102}}</ref><ref name="shea19840312">{{cite news | url=https://books.google.com/books?id=li4EAAAAMBAJ&pg=PA37 | title=PCjr users wait for packages | access-date=February 24, 2011 | author=Shea, Tom | date=March 12, 1984 | work=InfoWorld | pages=37–39}}</ref><ref name="trivette198504">{{cite news | url=http://www.atarimagazines.com/compute/issue59/review_lotus_123.php | title=Lotus 1-2-3 For IBM PCjr | work=Compute! | date=April 1985 | access-date=October 6, 2013 | author=Trivette, Donald B. | pages=63}}</ref> IBM's own DisplayWrite was released as a unique PCjr version.<ref name="dickinsondw19840918">{{cite news | url=https://books.google.com/books?id=Pq3POofPsBEC&pg=PA248 | title=IBM's Displaywriter Begets a Family of PC Software | work=PC | date=September 18, 1984 | access-date=January 29, 2015 | author=Dickinson, John | pages=238}}</ref> A four-line BASIC program that runs on the IBM PC can crash PCjr, mystifying even [[Peter Norton]].<ref name="norton1985">{{Cite book |last=Norton |first=Peter |author-link=Peter Norton |url=https://archive.org/details/The_Peter_Norton_Programmers_Guide_IBM-PC/page/37/mode/2up?view=theater |title=The Peter Norton Programmer's Guide for the IBM PC |publisher=Microsoft Press |year=1985 |isbn=0-914845-46-2 |page=37 |access-date=2025-04-12}}</ref> These compatibility limitations made the computer unsuitable for taking work home,{{r|levy198501}} although a PCjr variant of 1-2-3 was eventually released.{{r|trivette198504}}

Ultimately, the PCjr was perceived as not having a [[Killer application|killer app]] to make up for these limitations.{{r|levy198501}} Software incompatibility made it inadequate as a business machine,{{r|hayes19840424}} but poor performance with arcade-style games made it inadequate as a games machine.{{r|lima19841203}}

====Limited hardware expansion====
Computer dealers quickly identified the PCjr's limited hardware expansion capability as another major disadvantage.<ref name="zientara19840409">{{cite news | url=https://books.google.com/books?id=jC4EAAAAMBAJ&pg=PA13 | title=PCjr sales below expectations, dealers say | access-date=April 3, 2011 | work=InfoWorld | author=Zientara, Marguerite | date=April 9, 1984 | publisher=IDG}}</ref>{{r|time19840402}} ROM cartridges had small storage capacity,{{r|cook19840306}} requiring, for instance, two cartridges and a floppy disk for the PCjr version of Lotus 1-2-3, which also had difficulty fitting complex spreadsheets into 128K of RAM.{{r|trivette198504}} IBM published technical details for the PCjr as it had done for the IBM PC to encourage third parties to develop accessories, but did not offer a second floppy drive, hard drive,{{r|wp19831106}}<ref name="ruby198402" /> or memory beyond 128&nbsp;KB.{{r|hoffmann198403}}{{r|halfhill198410}}

While multiple sidecar expansion units could be attached, they took up a lot of space, and the computer required additional power supplies to support a second floppy drive or more than one sidecar. IBM advised against adding more than four sidecars.<ref name="ruby198402" /><ref name="mccarroll19841224" />{{r|levy198501}} The PCjr also lacks a [[Direct memory access|DMA]] controller, so the 8088 CPU has to service floppy disk transfers directly, causing the system to momentarily freeze while accessing a disk. The PCjr also cannot use modems faster than 2400 baud.<ref name="hoffmann198403">{{cite web | url=http://www.atarimagazines.com/creative/v10n3/74_IBM_PCjr.php | title=IBM PCjr | access-date=February 25, 2011 | author=Hoffmann, Thomas V. | date=March 1984 | work=Creative Computing | pages=74}}</ref>{{r|levy198501}}{{r|manes19850528}}

===Response to poor sales===
By mid-1984, the PCjr had experienced months of bad publicity, and dealers were panicking.{{r|mccarroll19841224}} Sales were poor and falling each month before rising slightly with the June discounts, and each dealer sold an average of 15 units total in the first half of the year.{{r|bulman19841105}} Apple sold almost as many IIc computers on its first day as PCjr since introduction.{{r|levy198501}}

IBM downplayed complaints about the keyboard,{{r|sanger19840422}}{{r|levy198501}} but in July announced that it would replace the chiclet keyboards, for free, with a new model with conventional typewriter-style keys.{{r|levy198501}} This was perceived as unusually generous even for IBM, especially within the computer industry.{{r|halfhill198410}}<ref name="mccarroll19841224" /><ref name="lima19841203">{{cite news | url=https://books.google.com/books?id=qS4EAAAAMBAJ&pg=PA60 | title=New PC Jr | access-date=February 25, 2011 | author=Lima, Tony | date=December 3, 1984 | work=InfoWorld | pages=60–61}}</ref> By replacing the keyboards IBM was acknowledging the original models were a mistake.{{r|halfhill198410}}{{r|nichols20140322}}

In August 1984, IBM began a massive advertising campaign which ran through the end of the year.{{r|bulman19841105}} They reduced the PCjr's list price, offering a US$999 package meant to be superior to the comparably priced Apple IIe and IIc, and they introduced new IBM-made memory expansion options to bring the machine to 512&nbsp;KB.<ref name="halfhill198410">{{cite news | url=http://www.atarimagazines.com/compute/issue53/020_1_IBMs_New_Improved_PCjr.php | title=IBM's New & Improved PCjr | access-date=February 24, 2011 | author=Halfhill, Tom R. | date=October 1984 | work=Compute! | pages=50}}</ref> As part of $32.5 million in advertising for the computer during 1984,<ref name="shiver19850926">{{Cite news |title=Advertising Age Report Spending by Top 100 U.S. Advertisers Up 16% in '84 |last=Shiver |first=Jube Jr. |date=September 26, 1985 |work=Los Angeles Times |page=2}}</ref> it began what the company described as the most extensive marketing campaign in IBM history, in which 98% of Americans would see at least 30 PCjr advertisements in the last four months of the year. Three simultaneous [[bundled software]] promotions, a sweepstakes with [[Procter & Gamble]], and direct mail to more than 10 million people marketed the redesigned computer,<ref name="sandler198411">{{cite news | url=http://www.atarimagazines.com/creative/v10n11/298_IBM_colossus_of_Armonk.php | title=IBM: Colossus of Armonk | work=Creative Computing | date=November 1984 | access-date=February 26, 2013 | author=Sandler, Corey | pages=298}}</ref>{{r|rosch19841113}} while deemphasizing the PCjr's role as a home computer and emphasizing PC compatibility.{{r|halfhill198410}}{{r|levy198501}} Advertisements listed the new price, "new typewriter-style keyboard", standard 128&nbsp;KB of memory and expansion options, the PCjr version of 1-2-3, and the ability to "run over a thousand of the most popular programs written for the IBM PC".<ref name="ibm198412">{{cite news | url=https://books.google.com/books?id=mF8EAAAAMBAJ&pg=PA47 | title=Now picture this. | work=Black Enterprise | date=December 1984 | access-date=February 25, 2011 | pages=47 | type=advertisement}}</ref> A $500 rebate to dealers let them include a free color monitor with the discounted PCjr.<ref name="fastie198502">{{Cite magazine |last=Fastie |first=Will |date=February 1985 |title=An old friend takes a hard look at the IBM product line. |url=https://www.atarimagazines.com/creative/v11n2/150_IBM_images_an_old_friend.php |department=IBM Images |magazine=Creative Computing |page=150 |access-date=2018-09-03}}</ref>{{r|winter19850324}}

Despite widespread skepticism,<ref name="dudek19841002">{{cite news | url=https://books.google.com/books?id=d-tPdHcBE9wC&pg=PA35 | title=Is jr 'Likely to Succeed'? Friends Gloat, Foes Groan | work=PC Magazine | author=Dudek, Virginia | date=October 2, 1984 | access-date=October 25, 2013 | pages=35}}</ref> what became known as the "Save-the-Junior campaign"{{r|rosch19841113}} succeeded in the short term. Sales rose every month from June (1.9 units sold per store) to September (4.2){{r|bulman19841105}} and many dealers reported selling more in the weeks following the changes than in the previous seven months.<ref name="mccarroll19841224" /><ref name="sanger19841115">{{cite news
 |url=https://www.nytimes.com/1984/11/15/business/at-computer-show-many-retrenching.html
 | title=At Computer Show, Many Retrenching
 | work=The New York Times
 | date=November 15, 1984
 | access-date=October 24, 2013
 | author=Sanger, David E.
}}</ref>{{r|rosch19841113}} The more expensive model now cost the {{val|p=$|800| to |900}} that had originally been expected prior to release.{{r|ap19850321}} With the new hardware options and lower prices consumers could buy a PCjr for {{US$|long=no|1000}} less than a comparable PC.{{r|diamond19840801}}{{r|halfhill198410}}

The PCjr reportedly became the best-selling computer,<ref name="kennedy19850514">{{Cite news |last=Kennedy, Don |title=Junior Axed By IBM |date=May 14, 1985 |work=PC |pages=33}}</ref> outselling the Apple IIe and IIc by four to one in some stores{{r|fastie198502}}<ref name="machrone19850402">{{cite news | url=https://books.google.com/books?id=w1aA2lOwdNIC&pg=PA81 | title=PCjr Renaissance | work=PC Magazine | date=April 2, 1985 | access-date=October 28, 2013 | author=Machrone, Bill | pages=81}}</ref> and even the C64.{{r|mccarroll19841224}} As sales reached an estimated 50 per store in December{{r|pollack19850320}} dealers increased inventories,{{r|ap19850321}} and Tecmar resumed production of PCjr peripherals after retailers suddenly began ordering its products again.<ref name="rosch19841113">{{Cite news |last=Rosch, Winn L. |url=https://books.google.com/books?id=-Ukz6hjZEA4C&pg=PA33 |title=Jr's Growth Spurts Sales |date=November 13, 1984 |work=PC |access-date=2020-03-15 |pages=33, 35}}</ref>

===Discontinuation===
By January 1985, IBM had sold an estimated 240,000-275,000 PCjrs, 200,000 of which were sold in the fourth quarter of 1984. When the discounts ended, however, sales decreased abruptly{{r|kennedy19850514}}<ref name="pollack19850320">{{cite news | url=https://www.nytimes.com/1985/03/20/business/ibm-drops-pcjr-production.html | title=I.B.M. Drops PCjr Production | access-date=February 25, 2011 | author=Pollack, Andrew | date=March 20, 1985 | work=The New York Times}}</ref>{{r|time19850401}} and inventories began to stack up again.{{r|ap19850321}} By this time, three PCjr-specific magazines had ended their publications{{r|bartimo19841210}} with significant losses.<ref name="tuller19861116">{{Cite news |url=https://www.nytimes.com/1986/11/16/business/abc-s-axe-wielding-publisher-robert-g-burton-championing-print-in-a-tv-world.html?pagewanted=all |title=ABC'S AXE-WIELDING PUBLISHER: ROBERT G. BURTON; Championing Print in a TV World |last=Tuller |first=David |date=November 16, 1986 |work=The New York Times}}</ref> IBM was unable to meet the demand for its new [[PC AT]] business microcomputer, but the home-computer market was in decline{{r|sanger19850118}}{{r|time19850401}} and the company was likely unable to make a sufficient profit when selling the PCjr at a discount.{{r|pollack19850120}}{{r|pollack19850320}}{{r|ap19850321}}{{r|time19850401}}

IBM discontinued the PCjr on March 19, 1985, stating that "The home market didn't expand to the degree I.B.M. and many observers thought it would". The surprise decision{{r|pollack19850320}}<ref name="time19850401">{{cite magazine|url=http://www.time.com/time/printout/0,8816,964850,00.html |archive-url=https://web.archive.org/web/20090625185216/http://www.time.com/time/magazine/article/0%2C9171%2C964850%2C00.html |archive-date=June 25, 2009 |title=Kicking Junior Out of the Family |access-date=February 23, 2011 |author1=Castro, Janice |author2=Bob Buderi |author3=Thomas McCarroll |date=April 1, 1985 |magazine=Time |url-status=dead }}</ref> by IBM's CEO [[John Akers]]{{r|sanger19850707}} astounded software developers, some of which only made PCjr products.{{r|kennedy19850514}} Rumored to have 100,000 to 400,000 unsold PCjrs{{r|kennedy19850514}}<ref name="steele19850709">{{cite news | url=https://books.google.com/books?id=SprPDrQRvM8C&pg=PA34 | title=COMDEX: Nothing New Under the Georgia Sun | work=PC Magazine | date=July 9, 1985 | access-date=October 28, 2013 | author=Steele, William | pages=34}}</ref>{{r|mintzer19860114}} despite not having ordered new microprocessors from Intel since summer 1984,<ref name="iw19850415">{{cite news | url=https://books.google.com/books?id=zC4EAAAAMBAJ&pg=PA13 | title=Death of the PCjr: Insiders Foresaw It | work=InfoWorld | date=April 15, 1985 | access-date=February 4, 2015 | pages=13 | editor=McCarthy, Michael}}</ref> the company offered large discounts to its employees<ref>{{cite news | url=https://www.nytimes.com/1985/09/19/business/ibm-offers-a-pcjr-deal.html | title=I.B.M. Offers a PCjr Deal | access-date=February 25, 2011 | date=September 19, 1985 | work=The New York Times}}</ref> and consumers. Inventory remained through Christmas 1985, and IBM used discounts as well as radio and full-page print ads to try to sell off remaining stocks.<ref name="mintzer19860114">{{cite news | url=https://books.google.com/books?id=hoPbDSDNLTQC&pg=PA75 | title=News in Brief | work=PC | date=January 14, 1986 | access-date=January 21, 2015 | pages=38 | editor=Mintzer, Jane}}</ref>