History
In January 1981, MOS Technology, Inc., Commodore's integrated circuit design subsidiary, initiated a project to design the graphic and audio chips for a next generation video game console. Design work for the chips, named MOS Technology VIC-II (graphics) and MOS Technology SID (audio), was completed in November 1981.
Commodore then began a game console project that would use the new chips—called the Ultimax or alternatively the Commodore MAX Machine, engineered by Yash Terakura from Commodore Japan. This project was eventually cancelled after just a few machines were manufactured for the Japanese market.
At the same time, Robert "Bob" Russell (system programmer and architect on the VIC-20) and Robert "Bob" Yannes (engineer of the SID) were critical of the current product line-up at Commodore, which was a continuation of the Commodore PET line aimed at business users. With the support of Al Charpentier (engineer of the VIC-II) and Charles Winterble (manager of MOS Technology), they proposed to Commodore CEO Jack Tramiel a true low-cost sequel to the VIC-20. Tramiel dictated that the machine should have 64 kB of random-access memory (RAM). Although 64 kB of dynamic random access memory (DRAM) cost over US$100 at the time, he knew that DRAM prices were falling, and would drop to an acceptable level before full production was reached. In November, Tramiel set a deadline for the first weekend of January, to coincide with the 1982 Consumer Electronics Show (CES).
The product was code named the VIC-40 as the successor to the popular VIC-20. The team that constructed it consisted of Bob Russell, Bob Yannes and David A. Ziembicki. The design, prototypes and some sample software was finished in time for the show, after the team had worked tirelessly over both Thanksgiving and Christmas weekends.
The machine incorporated Commodore BASIC 2.0 in ROM. BASIC also served as the user interface shell and was available immediately on startup at the READY. prompt.
When the product was to be presented, the VIC-40 product was renamed C64 to fit the then-current Commodore business products lineup which contained the P128 and the B256, both named by a letter and their respective total memory size (in KBytes).
The C64 made an impressive debut at the January 1982 Winter Consumer Electronics Show, as recalled by Production Engineer David A. Ziembicki: "All we saw at our booth were Atari people with their mouths dropping open, saying, 'How can you do that for $595?'" The answer, as it turned out, was vertical integration; thanks to Commodore's ownership of MOS Technology's semiconductor fabrication facilities, each C64 had an estimated production cost of only US$135.
Read more about this topic: Commodore 64
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