Editing Commodore International (section)

===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>