Collecting The Obscure: A Look At Atari's Failed Handheld Video Game System

December 13, 2019

In the mid- to late 1980s, after Nintendo had successfully reignited the market for home video games in the United States, several companies eagerly placed different video game systems into production to compete against Nintendo’s growing dominance. Most of these competitors realized that if they could not beat Nintendo directly on the home video game front, then they could possibly compete for market share in the realm of handheld portable video gaming. By late 1987, rumors were spreading that Nintendo was already working on a handheld version of its popular Nintendo Entertainment System, but most reports indicated that the system would not be able to display color graphics. This piqued the curiosities of several competitors who were already working on color portable video game systems.
Sega would go on to fight a well-fought war with Nintendo with its color portable video game system called the Game Gear, but it would fail against Nintendo’s Game Boy. Atari ironically would emerge from the ashes of defeat after handing the home video game business over to Nintendo without a whimper back in 1985. Their entry into the portable handheld video gaming market was released on Sept. 1, 1989, and was called the Atari Lynx. The Lynx was an impressive full-color handheld video game system that actually used a custom 16-bit graphics processing chip that displayed incredible graphics, allowing for more detailed graphics than anything that had ever been made available before. Games came on small square compact game cards that could easily be stored. The system was actually designed by Epyx Corporation, which was a struggling video game company on the verge of bankruptcy who once developed video games for Atari game systems like the Atari 2600 that were now defunct. Atari was able to purchase the rights to the system from Epyx and modify it to ensure they could easily develop individual games for the device. Ironically, before Atari acquired the handheld, Epyx attempted to sell the technology to Nintendo and Sega, but both declined. This should have been a warning sign to Atari, but they went ahead with the purchase anyway.
At first, the system sold fairly well. Atari was able to successfully sell about 500,000 units in 1990 alone. This may not sound like a lot, but it was a noble feat given that the Atari Lynx retailed for $179.99, while the Nintendo Game Boy, which came packaged with the hit game Tetris, sold for $89.99. Atari would engage in numerous advertising promotions to show just how powerful the Atari Lynx was when compared to Nintendo’s black and white game play. Unfortunately, Atari had very few stellar games available for play on the Lynx, while Nintendo started to port most of the company’s popular franchises to their underpowered black and white machine. Kid Icarus, Metroid, Super Mario, and others all made an appearance on the Game Boy, which caused even casual Nintendo enthusiasts to take notice. Meanwhile, Atari was struggling to design games that showed off the Lynx’s technical prowess. The Atari Lynx originally came packaged with the game California Games, which was a remake of a vintage computer game that originally premiered back in the early 1980s. The game, even on the spectacular Lynx hardware, showed its age and was no match for the addictive game play of Tetris that was featured on Nintendo’s Game Boy. By the end of 1990, it was becoming clear that the Lynx was struggling, especially given the fact that by this time Sega had readied their own full-color handheld video game system known as the Game Gear, which would be released in 1991.
In July 1991, Atari made the decision to redesign the Atari Lynx system and reintroduced it as the Atari Lynx II. They also dropped the price to $99 and announced a slew of new games, some of which would be based on the company’s back catalog of arcade games. Unfortunately, with Nintendo dominating both in the home video game market with the Nintendo Entertainment System and now on the handheld front with the Game Boy, both Sega and Atari were forced to fight it out for second place in the handheld market. Sega by this time was already successfully competing with Nintendo on the home front with their release of the 16-bit Sega Genesis home video game system.
By 1995, it was revealed the Atari Lynx would be quietly discontinued, as the system only sold a few million units since its launch in 1989. By contrast, Nintendo would sell 16 million Game Boy units by 1995 and announce its predecessor, the Game Boy Color, which would be released in 1998.
Today, the Atari Lynx is both loved and loathed by video game collectors. The original early systems do not perform well and are prone to technical issues, so any would-be collector is best to try to locate an Atari Lynx II system instead. They can be had for about $80 but go up in price depending on whether they have the box and if any games are included. Condition matters greatly with handheld video game systems, and if there is any damage to the screen or the controls of the unit, then prices drop considerably.
By far the most valuable games for the system are games that were released toward the end of the life of the system on retail shelves. That said, hobbyists are still making new home releases for the system today due to its cult following of diehard fans. Most older games for the Lynx can be had from anywhere from $15 to hundreds of dollars depending on rarity and condition. Since Atari Lynx games were cheaply packaged in flimsy cardboard boxes, it is very hard to find mint in box specimens. That said, games like Double Dragon, Raiden and Battlezone 2000 all have secondary market prices of $100 or more.
It should be noted that the Atari Lynx is quickly becoming a curiosity more than a true collectible, as aging enthusiasts who grew up with the system and games make up most of its fan base. Younger collectors don’t seem to be flocking to the world of vintage Atari games and systems. Still, the Atari Lynx was a defining moment for the company, and it is well worth going back and getting a unit and some games if you can find one cheap. I definitely recommend getting the following games that can be had cheaply should you wish to experience the Atari Lynx today: STUN Runner, Hydra, and Gauntlet. These are three classic arcade games that every Atari Lynx owner should have in their collections and play great on the system as well.

Shawn Surmick has been an avid collector since the age of 12. He currently resides in his hometown of Boyertown, Pa., and is a passionate collector of antiques and collectibles. His articles focus on various topics affecting the marketplace.

 

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