settlement, which would have given Magnavox all technical information on any of Atari's products announced between June 1, 1976, and June 1, 1977. However, Atari encountered production problems during its first batch, and its testing was complicated by the use of cartridges. The Atari VCS was launched in September 1977 at , with two joysticks and a Combat cartridge; eight additional games were sold separately. Most of the launch games were based on arcade games developed by Atari or its subsidiary Kee Games: for example, Combat was based on Kee's Tank (1974) and Atari's Jet Fighter (1975). Atari sold between 350,000 and 400,000 Atari VCS units during 1977, attributed to the delay in shipping the units and consumers' unfamiliarity with a swappable-cartridge console that is not dedicated to only one game. In 1978, Atari sold only 550,000 of the 800,000 systems manufactured. This required further financial support from Warner to cover losses. Atari sold 1 million consoles in 1979, particularly during the holiday season, but there was new competition from the Mattel Electronics Intellivision and Magnavox Odyssey², which also use swappable ROM cartridges. Atari obtained a license from Taito to develop a VCS conversion of its 1978 arcade hit Space Invaders. This is the first officially licensed arcade conversion for a home console. Its release in March 1980 doubled the console's sales for the year to more than 2 million units, and was considered the Atari 2600's killer application. Sales then doubled again for the next two years; by 1982, 10 million consoles had been sold in the United States, while its best-selling game was Pac-Man at over copies sold by 1990. Pac-Man propelled worldwide Atari VCS sales to units during 1982, eventually selling consoles worldwide by the end of the year. In Europe, the Atari VCS sold 125,000 units in the United Kingdom during 1980, and 450,000 in West Germany by 1984. In France, where the VCS released in 1982, the system sold 600,000 units by 1989. In 1982, Atari launched its second programmable console, the Atari 5200. To standardize naming, the VCS was renamed to the "Atari 2600 Video Computer System", or "Atari 2600", derived from the manufacture part number CX2600. By 1982, the 2600 cost Atari about to make and was sold for an average of . The company spent .50 to to manufacture each cartridge, plus to for advertising, wholesaling for . Third-party development Activision, formed