With sales of the Atari 5200 console already seriously impacted by the rival Colecovision video game system, and perhaps hoping to distract from a potentially alarming earnings statement issued the same day, Atari files suit against Coleco over the first add-on produced for Colecovision: Expansion Module #1, which allows Colecovision owners to play Atari 2600 games (and entices 2600 owners to trade up to Colecovision, since their existing game libraries won’t automatically become useless). Atari sues for patent infringement, while Coleco immediately countersues, claiming that Atari is violating antitrust and monopoly laws.
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