The history of this game is a bit of mystery. According to the copyright message its part of the Children's Computer Worshop series the Sesame Street series.
Its part number (CX-26131) and late copyright date (1984) are well outside the Children's Series range (CX-26101 - CX-26115). Atari may have been planning some kind of series for young children and infants in order to reach as wide an audience as possible. There is evidence of this as prototypes for other children's games such as Peek-A-Boo and Honker Bonker fall into this part number range. This prototype even uses the Kid's Controller, which further supports this theory.