Atari was a pioneer in the world of home video games, and the company is still around today. Founded in 1972, it’s best known for its home video game console dominance thanks to the Atari 2600, released back in 1977. The brand went on to release several home computers and video game consoles all the way into the 1990s, but it never reached the same success as it had with the Atari 2600 after the North American video game crash of 1983.
In its early years, Atari and its engineers were always experimenting with the burgeoning video game space. It was the Wild West in terms of possibilities, and this allowed companies to try new things. The company released various home computers, video game consoles, and even launched the first commercial music visualizer with the Atari Video Music device.
With so many irons in the fire, it should be no surprise that Atari had a number of announced products that never made it to market. From the likes of the unreleased Atari Game Brain home console to the Atari 1400XL home computer, the company was actively looking for the next big thing. But one unreleased Atari product in particular, the Cosmos, is held above all others in the collector space.
Atari tries its hand at holographic gaming
In 1978, Atari engineers began work on a project that involved 3D holograms — a technology that is still being experimented with today. Their efforts led to the creation of the Atari Cosmos video game console in 1981. Atari marketed the product by claiming that its holographic technology produced lifelike 3D images on a small and portable console.
The catch was that the holographic images did not affect gameplay in any way. Instead, Atari used them as game overlays, allowing two 3D images to be illuminated for each game. The underlying technology of the console used industry-standard LEDs on a 7×6 grid to produce light, similar to other simple portable consoles of the time.
Atari felt confident with the sample unit the team produced, creating marketing for the console and exhibiting it at CES and the New York Toy Fair in 1981. The company saw a lot of interest in the project during the year, garnering over 8,000 pre-orders for the Cosmos between both events. It looked like a full release of the console was right around the corner.
Atari pulled the plug on the Cosmos
All signs were pointed to Atari hoping to make a splash with the Cosmos, but things quickly took a turn with its sudden cancelation. It’s unclear exactly why the company axed the Cosmos, considering it was production-ready with accompanying packaging. There are reports that suggest the console saw poor reviews by those that got to experience it.
In an interview with Atari Compendium in 2013, Roger Hector, a creative designer at Atari who worked on the Cosmos, stated that then-CEO Ray Kassar told him the console was being shelved because the company needed more production space for additional Atari 2600 orders. Before the plug was pulled, Atari had produced several hundred pilot units of the console, complete with packaging. Because of this, several Atari Cosmos units have made it into the wild.
The console has become a coveted collector’s item, with the price skyrocketing due to its limited production. Back in 2010, a unit with missing parts was sold online for an impressive $7,500. Years later, in 2024, a nonfunctional prototype was sold at auction for a staggering $25,903. And in 2025, a prototype hologram overlay for the 1981 game “Superman” sold online for $444. Chances are slim you’ll ever find an Atari Cosmos in the wild, maybe even as slim as seeing the announced Atari hotel finally get built.
