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However, dealers have started grumbling about the price markup of the system at $600 retail for the full system and $400 for the add-on, the wholesale price of around $560 for the standalone and $415 for the add-on leaves near non-existent wiggle room to make any money on ADAM. Slipping release dates also start causing nervous rumbles.
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On tap for Coleco ADAM users is third-party software support, including Sierra On-Line porting over several of their Hi-RES adventures like Ulysses and the Golden Fleece and Cranston Manor. The enthusiasm shown by the press for such a cheap, complete and well-supported computer package has Coleco stock riding on a high, rising 14 points surrounding the ADAM introduction at Summer CES and priced at $65 per share by June of 1983. Stand-alone and add-on ADAM systems in the 1984 Montgomery Ward Christmas catalog ADAM Falls From Grace
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cities in 1984, the system never gets a dial tone.
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Scheduled to begin operation in a few U.S. High scores would go on record, and national tournaments a distinct possibility. Purchasing a 300 baud modem projected to cost under $100, subscribers would call a 900 flat-rate phone number and be matched with a fellow gamester, playing strategy, arcade and “entertainment software” on either a video game console or a computer. Instead of aping the existing telegaming services like Gameline for the Atari VCS or Playcable for the Intellivision, the system would feature unique two-player games created by Coleco but outside of the ColecoVision milieu. Super Donkey Kong on the Coleco ADAM, with intro screen and mudpie level, 1983 To further complicate matters, a day after the ADAM release date announcement, the consumer division of AT&T announces a developing joint venture with Coleco an online interactive game service using existing phone lines. Nintendo eventually goes it alone, and the result is the famous NES console, released wide in North America in 1986. Morgan comes over from Philip Morris to replace him, the new CEO places a freeze on new projects and no deal is signed between the two companies. In July of 1983, Ray Kassar suddenly steps down as Chairman and CEO, after his company posts a giant loss for the fiscal quarter, and with him embroiled in an insider trading scandal. The kerfuffle delays the Atari/Nintendo deal long enough to expose serious financial problems at Atari. Coleco eventually pulls the game from the ADAM library, removing it as a pack-in game inside the ADAM box, to be replaced by a Super version of Buck Rogers Planet of Zoom. Nintendo president Hiroshi Yamauchi subsequently rakes Coleco over the coals, and no assertions about ADAM being both a game console AND a computer assuage him. More salient, Atari has also recently secured magnetic media rights from Nintendo to distribute Donkey Kong and Donkey Kong Jr. on computers. Atari head Ray Kassar complains to Nintendo that they are in breach of contract over Coleco’s version for the ADAM computer. They are there to seal a deal with Nintendo to distribute the company’s hit Japanese game console, the Famicom, world-wide. A much-improved home version of Nintendo’s arcade game, featuring the intro with Kong climbing to the top of the structure as well as the 4th mud pie level previously missing in all other versions, the game quickly draws the ire of Atari execs attending the show. On the show floor, Coleco demonstrates the added storage capabilities of the ADAM‘s Data Pack cassettes by running its version of Super Donkey Kong on the demo machine. The complete computer package, with an announced $600 price-tag for the stand-alone version that’s far below any other comparable system cost up to that point, attracts a lot of buzz at the Chicago CES in 1983, with entertainment trade paper Variety calling it the “undisputed hit” of the show.