Released in 1985, the XE (XL "Enhanced) systems replaced the Warner XL line of 8-Bit home computers.  While selling all remaining inventory of the XL line, the new Atari under Jack Tramiel, had been redesigning the 8-Bit range.

The new machines were more cost effective to manufacture and had a radical new design, looking like the baby brothers of the new 16-Bit "ST" range.  These new 8-Bit computers also provided the first available hardware for the new Atari, and valuable revenue.

A 64Kb (65XE) and 128Kb (130XE) were released.  The 800XE was a 64Kb system released in Eastern Europe.  The 65XEP, a portable supporting a 3.5 inch disk drive, 5 inch monochrome CRT was never released and it is thought only one model exists.  (See the "Prototypes" section for more information on the 65XEP)

In 1987, Atari launched the XEGS (Games System).  The system offered a unique combination of a gaming console and computer system with its detachable keyboard.  This machine was an assault against the Nintendo gaming systems, and it was hoped that parents especially, would see the advantage of an alternative to Nintendo "game only" systems.

Atari also announced new game cartridges when they released the XEGS - but maybe they thought the parents wouldn't notice!  To read more about the XEGS, click here.