The First Home Computer: 30 Years Later

The First Home Computer: 30 Years Later Personal Recollections by Michael S. Tomczyk VIC 20 Product Manager – Protégé of Jack Tramiel – Author of ‘The Home Computer Wars’ Managing Director, Mack Center for Technological Innovation at The Wharton School Lifelong Innovation Champion November 17, 2012 Presented Copyright in by © 2012 Rome Italy Michael on 18 November Tomczyk. 2012 All rights reserved. Commodore in the 1970s From Calculators to Computers… Jack Tramiel was a Holocaust survivor who joined the U.S. Army, where he learned to repair typewriters. He founded Commodore in New York as an office equipment company. In 1976, engineer Chuck Peddle told Jack, “You didn’t buy a semiconductor Early 1970s - Commodore was a pioneer in company – you bought a personal digital calculators – no. 1 in Europe. computer company. Mid-1970s - Texas Instruments decided to He showed Jack a prototype and they make their own calculators, driving many decided to call it the Commodore PET firms out of business. Commodore lost $5 because the Pet Rock was very million on sales of $50 million. popular at the time – but the Pet Rock 1976 - Jack Tramiel asked financier Irving lawyers threatened to sue them so Gould for $3 million to buy MOS Technology, Chuck had to justify a semiconductor maker in Valley Forge, the name. Pennsylvania. Jack retained 8% ownership. He studied the MOS invented the 6502A dictionary overnight microprocessor chip. and named it the Commodore licensed Personal Electronic a version of this to Apple (through Synertek). Transactor (P.E.T.).  The Roots of Home Computing… In 1979 I was general manager of Metacolor, a small company in San Francisco that did special effects for motion pictures (Logan’s Run, Time After Time) and graphics for Atari games. Atari gave us a prototype of a new computer called the Atari 600 and made us a beta test site. The Atari 600 My staff would not stop playing a game called was based on “Star Raiders” so I took the machine home. the Atari 400 – it had plug-in Three days later – at 6:00 a.m. - I saw a thin shaft game of sunlight streaming through the curtains and cartridges (good) and a realized I stayed up three nights with NO SLEEP flat membrane playing video games! The next day I quit my job. keyboard (bad) I took BASIC programming classes where I used Apple and Commodore computers. I had studied journalism in college so I started writing magazine articles on personal computing – my first article was about the Star Raiders game! I hung out at Apple in Silicon Valley and got to know Steve Wozniak and Steve Jobs. After 6 months I had job offers from Apple and Atari.  A meeting with Jack Tramiel In March 1979 I had job offers from Apple and Atari but Apple was “papa bear” – too many geniuses. Atari was “baby bear” — not enough geniuses. Commodore was “mama bear” – half geniuses, half “idiots.” In 1979 Commodore I arranged an interview with Jack Tramiel was the third largest and told him very bluntly what I thought personal computer in was good and bad about Commodore. the U.S. and number He said “Call me tomorrow and I’ll decide one in Europe. what to do with you.” Apple and Radio The next day I called ELEVEN TIMES and Shack were the top each time the secretary gave me some personal computer excuse – finally at 7 p.m. I called and Jack makers in the U.S. answered the phone. (but weak in Europe). He asked me to come in the next day and hired me as Assistant to the President and Marketing Strategist. The Birth of the Home Computer April 1, 1980 – On my first day I joined Jack at a Left to right: Chuck Peddle, the head of meeting of international manufacturing, Sam Tramiel (Jack’s son) and Harald Speyer (Commodore Germany). Commodore managers in London (UK). At the meeting Jack said, “I want to make computers for the masses, not the Michael Tomczyk at Chuck Peddle showed a new prototype classes” – and described Windsor Castle computer that looked like an Apple II. his vision for a small color computer. The engineers wanted a larger Apple-style computer. They showed us a prototype that looked like the Apple II. These rare photos are all from the April 1 meeting.  The Birth of the Home Computer Everyone was against the idea of a small color computer except a few people. Kit Spencer (UK), Left: Jack at the meeting and (right) with Kit Spencer. He Tony Tokai (Japan), and I knew what was needed. were the main supporters. The next day, Jack returned and most people argued against the new computer. Finally, Jack stood up, banged his palm on the table and declared, “The Japanese are coming…so we will become the Japanese!” Everyone fell silent. His logic Dick Sanford (center) was Executive Vice was simple and powerful. President and number 2 in the company. He was supportive of the new computer but also The world’s first true home Michael Tomczyk recognized the need for a “business” version. computer was born. (arguing for the This shows him talking to Chuck Peddle and home computer). Kit Spencer on April 2, 1980. Photos by Michael Tomczyk – Copyright © 2012.  My First 3 Weeks With the Company Week 1 – London – Jack Tramiel said he wanted a small color computer. Week 2 – Germany – we persuaded the German government to give Commodore a “failing” electronics factory in Braunschweig Week 3 – Santa Clara, California – Jack asked me to evaluate the marketing department and after a few days he walked back and fired all of them (12 people). I became U.S. Director of Marketing. Week 3 – Santa Clara – I wrote a 30 page memo and drew a happy face with a beard and mustache on the cover. I gave it to Jack and told him whoever is in charge of the new computer needs to read this. A few days later Jack came to my office and tossed the memo on my desk. He told me, “I’ve told everyone involved that they need to get your approval on anything to do with this – but none of them report to you so you’ll have to use persuasion to get it done.” In Europe, I got to know all of the international managers and established several alliances and friendships. After the London meeting, Harald Speyer and I took the Commodore private jet to Germany. Harald Speyer (left) and Michael Tomczyk – April 1980 The VIC Commandos  I told everyone involved that there was one Prime Directive, like Star Trek: “This must be a USER FRIENDLY computer.”  Yash Terakura, the Japanese software engineer who designed the firmware, replied, “This will be a friendly computer because I am a friendly engineer!”  I had to fight for full size typewriter keys (instead of a membrane keyboard), and beige color (instead of grey and black). The programmable function keys were adapted from some orange keys I saw on an NEC computer prototype in Tokyo.  I hired a half dozen young computer programmers and hobbyists who were all self-taught. They were 18 to 25 years old (I was 32 in 1980). We wrote the user guides and created the first software.  Everyone kept stealing our equipment for trade shows so I called the group the VIC Commandos and we each got a brass coin which was our symbol. I announced one day that I would fire anyone who stole our equipment without permission.  The editor of BYTE Magazine was a friend – one day he sent me a note that said there is a German word for user-friendliness – Benutzefreundlichkeit – and this became our official motto. Michael S. Tomczyk - 2012. This is my original VIC20 prototype which I used to create the user manual, programmer’s reference guide and software programs we sold on cassette tape. It is now yellow with age – you can see the stickers I put on the case that say “VIC-20” and “Commando.” The first computers kept overheating after 5 or 6 hours, but they came back to life if you put a bag of ice on the circuit board. After the first 100,000 units, we added a heat synch to dissipate the heat. Phto by Michael Tomczyk – Copyright © 2012.  Hi-Res Video Commodore Games – joystick port; sound & graphics The computer was introduced Disk & Tape chips; sprite in Japan as the VIC1001 in Drives animation September 1980. We launched it as the VIC20 in January 1981 at Programmable the U.S. Consumer Electronics function keys Show. The distinctive logo and graphics were designed in the UK & Germany. 5k RAM expandable to 32K – we sold 8k, 16k and 32 memory Built in RS232 expansion telecommu- cartridges nications interface Full size The VIC20’s RAM typewriter memory was only style 5 Kilobytes! keyboard That’s equivalent to the letters and Software on cartridge, disk and spaces on one tape cassettes – I hired an sheet of typing artist to do the distinctive paper! Copyright © 2011 by Michael S. Tomczyk package illustrations. The Name Game I wanted to call it the Commodore Spirit but spirit The Price Game means horrible ghoul in Japan I set the price at so I called it VIC $299.95 because after the Video the only Interface Chip The VIC-20 became the first computers with similar features and added the number 20. microcomputer to sell one were selling for When Jack asked “why 20?” million units. $600. I told Jack this I replied Jack and I felt strongly that this was a computer was a “friendly “because Vic that any home user or school could afford to buy. price.” sounds like a Teachers started teaching algebra at an earlier age truck driver and because programming includes algebra. We quickly 20 is a friendly did a PAL version for Europe and I worked very number.” closely with Kit Spencer in the UK. Commodore In 1980, computers I contracted a small used acoustic industrial modem telephone modems company to design a that cost US$400. modem that would cost $33 to make – so we could sell it for $99. The result was the They showed me an VICModem, the first acoustic design but it computer modem priced was too expensive so I under $100. I negotiated told them to put it on a free telecomputing game style cartridge… services worth $197.50 — the free services were TRIVIA: We were selling so many VIC20’s that we couldn’t worth more than the handle all of the customer service inquiries and technical questions - so we needed a way for Commodore user clubs to modem! VICModem network so they could help answer questions. became the world’s first million-seller modem.  VIDEO GAMES FOR THE VIC-20 Commodore’s Pac-Man – Uh, I mean…Jelly Monsters! Commodore Japan secured the rights to convert several Namco games including Pac- Man…unfortunately Bally Midway and Atari owned the rights in the United States. The Commodore version was hi-resolution compared to the Atari game version which was very pixelated and very crude looking. When we saw the game, Jack decided to sell it in Europe as “Jelly Monsters.” “You know Atari is going to sue us,” I warned — to which he replied, “That’s okay. We’ll escrow a royalty and when they sue us we’ll pay them the royalty as the settlement and stop making the game, but by that time we’ll have sold a million.” And that’s exactly what happened. Jelly Monsters helped us sell millions of VIC20s. Copyright © 2012 by Michael S. Tomczyk  VIDEO GAMES FOR THE VIC-20 Scott Adams Video Games The first VIC20s didn’t have enough video games so I contracted for 7 adventure games from Scott Adams. Scott was the first person to create an adventure style game for personal computers. These were TEXT games. These games showed other game designers what was possible – jump starting the game market. I contracted an artist to do the package design. For “The Count” the artist made the vampire look too much like actor Frank Langella who was starring in a popular vampire movie, so he had to change the facial features. The VIC Commandos did a “6-pack” of games on cassette tape including “Blue Meanies from Outer Space.” The 6 pack could be sold by retailers as a set, or sold individually.  VIDEO GAMES FOR THE VIC-20 JACK ATTACK! We had licensed an interesting video game for our cartridge series and were looking for a name when we had a quirky idea. Jack Tramiel was known to be very intense during meetings – he was tough, hard driving and sometimes brow-beat executives if they showed signs of incompetence or weakness. A meeting with Jack that had a bad result was known around the company as a “Jack Attack.” It was a joke we all shared. So when one of our games needed a name, we decided to call it Jack Attack. Jack himself thought it was funny and ironic.  After the VICModem was launched, I created the Commodore Information Network which Commodore was accessible through CompuServe and hired an editor to manage it . The Commodore Information Information Network was one of the first Network Internet style user communities. In those days, the portals and networks paid us for providing content (which is the opposite of today). One day Jack came storming into my office angrily waving a check for $32,000. “What’s this?” he demanded. “Why is CompuServe sending us money? Did someone do a deal I’m not aware of?” I laughed like crazy and told him, “That’s the royalty check – they pay us that because our information network is the largest community on CompuServe!” “Oh.” Jack just nodded and smiled and walked out, staring at the check. Marketing the Friendly Computer™ One day I noticed that Atari’s package had a trademark after the phrase “Computers for People.” I rushed to our legal department and asked, “Can they do that?” The lawyers said they could. “Then we’re going to trademark The Friendly Computer” I said. From then on, the VIC-20 was known as The We hired Star Trek star Friendly Computer – and William Shatner as our competitors had a tough advertising spokesman – time calling their one of my coolest computers “friendly” experiences was showing because of our Bill Shatner how to use a trademark. In those computer…it was the first days, computers were time he used a REAL NOT considered friendly. computer! Copyright © 2012 by Michael S. Tomczyk In 1982, we launched the Commodore 64 , a full-featured 64K color computer capable of running the top 4 killer apps: The wordprocessing, spreadsheets, Magic graphics and databases. Voice Speech This was the most successful Module personal computer ever sold…between 17 and 25 million The engineer who developed “Speak and were sold. The retail price was Spell” for Texas Instruments designed a US$595. custom speech module that we calledThe Magic Voice. I defined the 256 word Accessories included a color vocabulary for this module and it took me several weeks to choose the words. The monitor, floppy disk drive, speech voice synthesis was very futuristic. This module (the Magic Voice), IEEE and was one of our most cutting-edge innovations. CPM interfaces and much more. REVENGE…AND DISASTER In 1983, a business magazine reported This strategy BACK- that Texas Instruments had a larger FIRED on Jack Tramiel. market share than Commodore but we 1) Texas Instruments knew that wasn’t true. dumped their On April 4, 1983, Commodore cut the computers at VIC20 price to $99. Our engineers bargain prices to learned that Texas Instruments was clear their inventory. LOSING $25-$30 on their TI 99/4a home 2) Commodore computer and only made a profit on retailers demanded their software and accessories! free products and At the June 1983 summer Consumer cash to “stock Electronic Show in Las Vegas, Jack cut balance” and make all our software and accessory prices in up for the price cuts. HALF – 2 weeks later, Texas 3) The 4th Quarter of Instruments announced they were 1983 was a financial closing their home computer division! mess as a result of TI almost drove Commodore out of the the TI dumping, 50% calculator business in the 1970s. In cut in prices, and 1983, Jack drove TI out of the home retailer balancing. computer business! JACK TRAMIEL LEAVES COMMODORE In January 1984 at the Board of Directors meeting, Jack was planning to nominate his 3 sons to join Commodore’s management team to continue the company’s culture of innovation. Instead, Irving Gould, Chairman of Commodore and the largest shareholder, coldly forced Jack to resign and offered to buy half his stock. It was a coups d’etat. Irving Gould Jack was on a jet back to California while the board meeting was still in progress. (I learned the news immediately from our corporate attorney’s assistant, who called me to let me know.) Irving said he felt that “professional management” was needed and he saw Jack’s price-slashing Jack’s 3 sons were all strategy as reckless, even though it left Commodore experienced in with more than 60% of the home computing market. business. Gary worked in banking He assigned the management of the company to a and investment, Sam group of older men in their 50s and 60s who did not ran companies in the U.S. and Asia, and understand personal computing. Leonard helped design the original Most of the “Commodorians” who built the company PET. and had a Ph.D. were shocked and saddened. in physics. LIFE AFTER COMMODORE… 1. Jack took a 6 month trip around the world with his wife Helen. 2. Commodore’s stock plunged from $90 to $6 in six months. 3. Warner Communications invited Jack to take over Atari, which lost $1 billion in 5 years. Jack turned Atari into a family business run by his sons. Atari was profitable in 6 months. I had dinner with Jack in New York and he told me Atari would be a “blood family” business and there was no role there for me. 4. At Commodore, new products were cancelled. 35 managers, engineers and marketeers left the company in one week in May 1984 (including me). No one invited us to stay. 5. Commodore bought the Amiga computer from external developers for $23 million. It was the company’s only real success. 6. Commodore became the largest seller of IBM PC clones in Europe. Home computers were replaced by personal computers and Commodore did not keep pace with the market. 7. The company never recovered. Several people tried to run the company but they were all weak and ineffective. Commodore descended into a slow “death spiral” and went bankrupt in 1994. FOOTNOTES… Michael Tomczyk joined the Wharton School in 1994 to help launch the Mack Center for Technological Innovation, where he is Managing Director and an enthusiastic Jack retired in the late 1980s and Sam innovation champion. In 2010 he earned a became CEO of Atari. When Sam had a master’s degree in environmental studies. heart attack in 1995, Jack came out of He is writing a book on Nanoinnovation. retirement briefly. He sold Atari in a Michael and his wife Nancy enjoy fossil reverse merger, which created JTS Corp in collecting, scuba diving and travel. 1996. Jack’s sons remain involved in the family’s investments and philanthropic Jack was co- activities. founder of the U.S. Holocaust Memorial Museum (1993). Irving Gould died in Jack and Helen 2004 at the age of 84. Tramiel visited He is widely credited Auschwitz with with killing a billion their sons in dollar company. 2004.  Jack Tramiel died in California on April 8, 2012 at the age of 83. He will always be remembered for his mantra, to make computers “for the masses, not the classes.”