Intention
The C16 was intended to compete with other sub-$100 computers from Timex Corporation, Mattel, and Texas Instruments (TI). Timex's and Mattel's computers were less expensive than the VIC-20, and although the VIC-20 offered better expandability, a full-travel keyboard, and in some cases more memory, the C16 offered a chance to improve upon those advantages. The TI-99/4A was priced in-between Commodore's VIC-20 and Commodore 64, and was somewhat between them in capability, but TI was lowering its prices. On paper, the C16 was a closer match for the TI-99/4A than the aging VIC-20.
Commodore president Jack Tramiel feared that one or more Japanese companies would introduce a consumer-oriented computer and undercut everyone's prices. Although the Japanese would soon dominate the U.S. video game console market, their feared dominance of the home computer field never materialized. Additionally, Timex, Mattel, and TI departed the computer market before the C16 was released.
Read more about this topic: Commodore 16
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