Released in 1985, the XE (XL "Enhanced) systems replaced the Warner XL line of 8-Bit home computers.  While selling all remaining inventory of the XL line, the new Atari under Jack Tramiel, had been redesigning the 8-Bit range.

The new machines were more cost effective to manufacture and had a radical new design, looking like the baby brothers of the new 16-Bit "ST" range.  These new 8-Bit computers also provided the first available hardware for the new Atari, and valuable revenue.

A 64Kb (65XE) and 128Kb (130XE) were released.  The 800XE was a 64Kb system released in Eastern Europe.  The 65XEP, a portable supporting a 3.5 inch disk drive, 5 inch monochrome CRT was never released and it is thought only one model exists.  (See the "Prototypes" section for more information on the 65XEP)

There was also an announcement made about the 65XEM, which donated "music".  This system was never released, but a number of working prototypes were produced.  A new polyphonic AMY super-sound chip was being worked on at Atari, and was a parting legacy by Warner-Atari computer engineers.  Unfortunately, these engineers no longer worked at the new slim and trim Atari, and the project was eventually axed.

Compute! magazine featured a news story on the 65XEM in April 1985:

"The third new 8-bit machine is an interesting variation of the 65XE called the 65XEM (XE Music computer). It's a 65XE with an additional sound chip, the new eight-voice "Amy". Unfortunately, this was the only new computer Atari didn't exhibit at the show.

However, those who have heard Amy say it outperforms even the SID synthesizer chip in the Commodore 64. Amy has a dynamic range exceeding 60 decibels, a frequency range of nearly 11 octaves from 4.8 hertz (far below human hearing) to 7.8 kilohertz, frequency resolution of 1/64 semitones, 64 harmonics, and many other features. Reportedly it can synthesize almost any musical instrument sound. The 65XEM will sell for about $150."

Also from Compute - April 1985:

"The XE series includes the 65XE, a 64K enhanced version of the 800XL, to sell for $99; the 130XE, a 128K version for under $200; the 65XEP, a transportable version of the 65XE which includes a built-in monochrome monitor, 3½-inch disk drive, and battery pack, to sell for under $400; and the 65XEM, essentially a 65XE with an eight-voice AMY sound chip that includes 64 oscillators. Reportedly, the AMY chip can be programmed to simulate any musical instrument. This machine will be offered for under $200."

In 1987, Atari launched the XEGS (Games System).  The system offered a unique combination of a gaming console and computer system with its detachable keyboard.  This machine was an assault against the Nintendo gaming systems, and it was hoped that parents especially, would see the advantage of an alternative to Nintendo "game only" systems.

Atari also announced 40 new game cartridges when they released the XEGS - but maybe they thought the parents wouldn't notice!  To read more about the XEGS, go to the "Video Game Systems" menu.