In August 1982, Coleco released the ColecoVision, a new $175 videogame system with graphics and sound superior to both the Atari 2600 and the Intellivision. What really "made" the ColecoVision, however, was its pack-in game: the mega-popular Donkey Kong. In any event, Coleco's console went on to become one of the most popular game machines among 1980s players, as well as among today's classic gamers.
Coleco (a contraction of COnneticut LEather COmpany) was founded in 1932 and originally sold leather supplies to shoemakers. They eventually got into leather craft kits (since Davy Crockett and Howdy Doody were popular back then), and they sold pretty well. Later, Coleco got into plastics and started manufacturing kiddie pools. By 1960, pool sales had reached over one million dollars a year. In 1962 the leather goods division was sold, and Coleco went public. Coleco continued expanding its swimming pool business and by the late 1960s it was the world's largest manufacturer of above-ground swimming pools. Since swimming pools were obviously seasonal, the company looked into other areas to invest. Some things worked (doll carriages and table top hockey games), others (snowmobiles and dirt bikes) didn't. Earnings throughout the '70s were unstable and the company almost went under in 1978.
The ColecoVision had quite a few great games; its game library was primarily a collection of overlooked (but fun) coin-op ports. Coleco's software approach was to go after licensed arcade games that Atari had missed and to make cartridges for the 2600 and Intellivision in addition to its own system. Realizing that Atari had firm support from Namco (creators of Pac-Man and many other hits), Coleco involved itself with companies like Sega, Konami, and Universal. The ColecoVision had enough power to produce nearly perfect arcade-quality ports, which boosted its popularity quite a bit. Industry magazines like Electronic Games were unanimous in their enthusiasm over Coleco's marvelous machine.
Some of the more popular games included Donkey Kong (the pack-in), Donkey Kong Junior, Carnival, Lady Bug, Mouse Trap, Smurf: Rescue in Gargamel's Castle, and Zaxxon. The system's translation of Spy Hunter may be the best version of the game short of arcade emulation. The ColecoVision didn't really have many revolutionary new games, since most of its popular titles were arcade ports. Still, there are a few notable original titles like War Room, Illusions, and Fortune Builder, an early milestone in the style of Sim City.