The Rise of ColecoVision: Coleco’s Bold Entry into the Console Market

Discover how Coleco transitioned from handheld electronic games to launching the ColecoVision console in 1982, reshaping home gaming after near bankruptcy.

ColecoVision represents a pivotal chapter in the evolution of home video game consoles.

Total games cataloged:39

Developed by Coleco, the system marked the company’s ambitious re-entry into the gaming market following earlier successes and setbacks. Coleco first ventured into video games in 1976 with its Telstar line during the era of dedicated home consoles. However, as market saturation took hold, Coleco faced significant financial struggles.

In a strategic pivot, the company found renewed success through handheld electronic games, outpacing competitors like Mattel. This innovation extended to miniature tabletop arcade machines, developed under licensing agreements with major arcade game publishers such as Sega, Bally, Midway, and Nintendo. These ventures sustained Coleco’s presence in the electronic entertainment sector through the early 1980s.

By 1982, with the market for handheld games declining, Coleco president Arnold Greenberg remained committed to creating a full-fledged home video game console. This vision led to the development of ColecoVision, a console that would help redefine home gaming by offering arcade-quality experiences and laying the groundwork for future competition in the industry.