Commodore founder Jack Tramiel resigned in January 1984 and in July, he purchased the Atari consumer division from Warner for an extremely low price. No cash was required, and instead Warner had the right to purchase in long-term notes and warrants, and Tramiel had an option to buy up to in Warner stock. When Tramiel took over, the high-end XL models were canceled and the low-end XLs were redesigned into the XE series. Nearly all research, design, and prototype projects were canceled, including the Amiga-based 1850XLD. Tramiel focused on developing the 68000-based Atari ST computer line and recruiting former Commodore engineers to work on it.
commodore founder jack tramiel resigned in january 1984 and in july he purchased the atari consumer division from warner for an extremely low price no cash was required and instead warner had the right to purchase in long-term notes and warrants and tramiel had an option to buy up to in warner stock when tramiel took over the high-end xl models were canceled and the low-end xls were redesigned into the xe series nearly all research design and prototype projects were canceled including the amiga-based 1850xld tramiel focused on developing the 68000-based atari st computer line and recruiting former commodore engineers to work on it