The Magnavox Odyssey 2 (stylized as Magnavox Odyssey2), also known as Philips Odyssey 2, is a home video game console of the second generation that was released in 1978. It was sold in Europe as the Philips Videopac G7000, in Brazil and Peru as the Philips Odyssey and in Japan as Odyssey2 (オデッセイ2 odessei2). The Odyssey 2 faced competition from a number of other consoles, including the Atari 2600, Intellivision, and Colecovision, prior to its discontinuation following the video game crash of 1983.

In the early 1970s, Magnavox pioneered the home video game industry by successfully bringing the first home console to market, the Odyssey, which was quickly followed by a number of later models, each with a few technological improvements. In 1978, Magnavox, now a subsidiary of North American Philips, decided to release an all-new successor, Odyssey 2.

In 2009, the video game website IGN named the Odyssey 2 the 21st greatest video game console, out of a list of 25.

History

Background

The Magnavox Odyssey, initially designed by Ralph Baer at Sanders Associates, was sold by Magnavox in 1972. It was the first commercial video game console, but was only a modest commercial and consumer success. Magnavox had licensed a number of key video game patents, however, which enabled them to sue Atari in 1974. In July 1975, Magnavox was fully acquired by North American Philips (N.A.P.).

Intel engineer Stan Mazor, one of the designers on the world's first microprocessor the Intel 4004, was interested in moving the company into the video game space. Mazor reached out to Magnavox console design lead Gene Kale, and the two companies reached a partnership. Magnavox began designing a new console based around the Intel 8048 microcontroller. In 1975, Intel began development on a graphics chip commissioned by Kale and his team known as the Intel 8244. It was the world's first programmable sprite-based graphics chip.

Development

In early 1977, Magnavox president Alfred DiScipio announced they had begun development on a microprocessor-based video game console, which they hoped to ship by the Christmas season. The decision was made to buy almost all of the internal components from Intel, including the Intel 8048 central processing unit, the Intel 8244 graphics chip, and the system's RAM and ROM. The lead designer for the console, which would eventually become the Magnavox Odyssey², was Roberto Lenarducci; Lenarducci would be the contributor responsible adding a keyboard to its system.

Intel faced a production error with the 8244 which put a delay on the release of the system. In August 1977, Magnavox management contemplated ending the Odyssey² project and laying off most of its staff. Ralph Baer, who was otherwise mostly uninvolved with the project, flew to the Magnavox's video game offices in Knoxville, Tennessee to convince management it was worth salvaging. Magnavox president DiScipio, along with Magnavox's senior vice president John Fauth, ultimately decided to go ahead with the project. Soon after, an executive named Mike Staup was named vice president of "interactive devices", which included video tape recorders, laserdiscs, and video games.

Development on the first batch of games was the responsibility of software developer Sam Overton; According to Baer, Overton was the only software developer working on the project at Magnavox. Game packaging and marketing materials were produced by artist Rob Bradford and designer Steve Lehner of Bradford/Cout Design, a marketing firm based in Skokie, Illinois. Lehner and Bradford had previously produced many of the materials for the original Magnavox Odyssey.

Release

The Odyssey² was initially planned for release in North America in June 1978. By March, the release had been pushed back to early fall. According to Television Digest Weekly, a high level of defective chips sent by Intel may have been a cause for the delay. The Odyssey² began shipping to retailers in September 1978. It came with a suggested retail price of $179.95 with eight games available at launch. A ninth game, Computer Intro!, was planned for launch but was released later in 1979. The console sold about 100,000 units in its first year.

Sometime after the console went into production, Magnavox once again considered shelving the project. Software developer Sam Overton left Magnavox for Milton Bradley leaving no game development staff left. Ed Averett, a sales representative at Intel working with the Intel 8244, thought he could save the project by developing new games. Averett recalls telling his boss, Andy Grove, that he "could sell more silicon for Intel if [he] programmed games for the Odyssey 2 than if [he] stayed." Magnavox accepted his offer to produce new titles in exchange for royalties, with his first batch of games releasing in 1979. Working out of his home in Chattanooga, Tennessee, Ed and his wife Linda developed 25 games for the system as freelance developers. Until 1981, he was the only North American Odyssey² developer.

In Europe, the console was released by the Dutch counterpart to N.A.P., Philips N.V., who renamed it to the Philips Videopac G7000 with all new packaging and marketing. It initially launched in December 1978, but after selling 7,500 units the product was recalled due to a faulty power plug. It began shipping again in the summer of 1979, selling for £150 in the UK. Several original games were also developed for the European market. Jon Shuttleworth, who played a key role in the design of these games and the redesign of the console for PAL regions, said they were aiming to appeal to the "peaceful" Europeans who "would like things more slanted to their "delicate" taste." Shuttleworth says that some of the games were developed internally but others were designed by a company in Sweden and then programmed by a company called GST.

In North America, the Odyssey² was a moderate success, despite being a side project for Magnavox and receiving little marketing. By the end of 1980, it had sold 385,000 lifetime units and held about 10% of the market, better than all its competitors except for the Atari 2600 (which had sold over two million units). It would soon be eclipsed in sales by the Intellivision and later the ColecoVision. According to Averett, Magnavox and Philips were always close to shutting the project down despite every game produced selling out. In Europe, the Videopac G7000 faired far better, being a reasonable success.

In February 1981, Magnavox Consumer Electronics was renamed to the North American Philips Consumer Electronics Company following N.A.P.'s acquisition of Philco and Sylvania. By the end of 1981, new Odyssey² products had dropped the Magnavox branding in exchange for a new video game label also named "Odyssey".

K.C. Munchkin! and the video game boom

By the end of 1980, Namco's arcade hit Pac-Man began appearing in North American arcades. It was an unprecedented commercial success, outselling a number of Hollywood blockbusters. Following the success, N.A.P. executive Mike Staup and programmer Ed Averett played the game in an airport arcade and decided to create a version for the Odyssey². While this version was in development, N.A.P. attempted to acquire the home console rights for Pac-Man without realizing they had already been licensed to Atari. N.A.P. decided to strip the license and release the game in 1981 as K.C. Munchkin!, beating Atari's version to market by several months.

K.C. Munchkin! was a massive hit. According to N.A.P. representative Ed Williams, the game outsold every previous Odyssey² title combined within the span of two months. This success drove Philips to put more investment into the Odyssey². In 1981, N.A.P. decided to rehire Sam Overton, who lead a new team of developers including Jim Butler and Bob Harris. Philips also released its Master Strategy series, three video game/board game hybrids that were critically well received despite their high prices.

In 1981, Atari sued N.A.P. Consumer Electronics for copyright infringement over K.C. Munchkin. The ensuing court case, Atari, Inc. v. North American Philips Consumer Electronics Corp., was one of the first trials involving video game copyright law. N.A.P. was confident going in and won a motion hearing for a preliminary injection, but the ruling was overturned on appeal. In March 1982 following the ruling, K.C. Munchkin! was pulled from the market. Undeterred, N.A.P. released a sequel titled K.C.'s Krazy Chase!, that released alongside a voice module expansion known as "The Voice of Odyssey²" in September 1982. The Odyssey² was also featured at the 1982 World's Fair in Knoxville, Tennessee, which hosted a nationwide Pick Axe Pete! tournament.

In Europe, the Videopac never received "The Voice" module. It did receive an exclusive chess module called the Videopac C7010. It was released as a separate unit containing its own Z80-compatible processor, and first showed up in the UK in April 1983. In 1983, Europe also received a hardware revision known as the Videopac G7200, which included a built in black and white screen and SCART port but was otherwise entirely compatible with the forty Videopac games released to that point. The Odyssey² was also released in Japan in December 1982 where it made little impact. It was considerably more successful in Brazil, where it launched as the Philips Odyssey in May 1983 and received strong support.

Odyssey 3

In an April 1982 press conference, N.A.P. announced the development of a successor system, the Odyssey 3 (stylized as Odyssey³), planned for release in mid 1983. In a different press conference, representatives said they were still unsure whether the system would be positioned as a video game console or a home computer. It was showcased at Winter CES 1983, now renamed as the Odyssey Command Center. The console was announced as fully compatible with all previous Odyssey² titles with included peripheral ports for Voice compatibility. N.A.P. showcased updated version of games such as Pick Axe Pete! and Freedom Fighters! with more graphically rich backgrounds. The system was set for a release in July 1983 at a suggested retail price of $199. A peripheral that expanded the system into a home computer platform with 16 KB of RAM was planned for a Christmas launch.

At Summer CES in June 1983, N.A.P. announced that the North American release of the Odyssey 3 would be delayed to early 1984. Mike Staup said "We are convinced that the computer capability must be built in to the unit rather than as an outboarded capability as announced in December." N.A.P. instead announced the development of third party titles for the Atari 2600 and the ColecoVision under the Probe 2000 label, these included licensed titles Power Lords and The Adventures of the Pink Panther (which was ultimately cancelled). The Odyssey 3 was released in Europe as the Philips Videopac+ G7400 in late 1983. The Odyssey 3 never released in North America. According to N.A.P. spokesman Jerry Michaelson, they choose not to release the console in the United States because they were "leapfrogging to the next [generation]."

By the end of the year, Philips began responding to the video game crash of 1983. In October 1983, following the release of the first Probe 2000 game War Room for the ColecoVision, Odyssey announced it had cancelled its Probe 2000 line and all future Odyssey² titles. This followed a budget cut from N.A.P. which left research and development barely enough money to produce a single game. In March 1984, North American Philips announced they were halting all video game production and dissolving the Odyssey brand. This included the discontinuation of the Odyssey². According to N.A.P.C.E.C. representative Pat Wilson, "general market conditions" were the cause for the decision.

Design