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A history of the Amiga, part 10: the downfall of Commodore

As the 1990s began, Commodore should have been flying high. The long-awaited new Amiga models with better graphics, the A1200 and A4000, were finally released in 1992. Sales responded by increasing 17 percent over the previous year. The Video Toaster had established a niche in desktop video editing that no other computer platform could match, and the new Toaster 4000 promised to be even better than before. After a rocky start, the Amiga seemed to be hitting its stride.

Unfortunately, this success wouldn’t last. In 1993, sales fell by 20 percent, and Commodore lost $366 million. In the first quarter of 1994, the company announced a loss of $8.2 million – much better than the previous four quarters, but still not enough to turn a profit. Commodore had run into financial difficulties before, particularly in the mid-’80s, but this time the wounds were too deep. Sales of the venerable Commodore 64 had finally collapsed, and the Amiga wasn’t able to fill the gap quickly enough. The company issued a statement warning investors of its problems, and the stock plunged. On April 29, 1994, Commodore International Limited announced that it was starting the initial phase of voluntary liquidation of all of its assets and filing for bankruptcy protection. Commodore, once the savior of the Amiga, had failed to save itself.

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