Money in the bank

    After several weeks of back and forth throughout February 1984, David Morse of Amiga and John Ferrand of Atari come to basic terms on a Letter of Intent between Atari and Amiga.      Which would include Atari advancing to Amiga $500,000 on signing of the LOI so that Amiga could continue its funding and development of the "Lorraine" while Atari and Amiga worked on creating and getting signed a Licensing Agreement which Atari would then pay Amiga another $1,000,000 at the signing of the license.  Then upon each of the 3 chips delivered to Atari, Amiga would then receive $500,000 for delivery of each chip for a total of $3,000,000.

The initial offering of a License between Amiga and Atari would grant Atari exclusive usage of the Amiga chipset for its videogame business.    Atari would receive non-exclusive usage of the chipset in the home computer business, but that Atari could not do anything in the computer field until 1985 and only as a keyboard upgrade to its videogame system.    In 1986 Atari could then sell a dedicated computer system based on the chipset.   This would allow Amiga the ability to market and sell its own system without competition in the computer field from its licensor - Atari.



Shortly after the signing, the Amiga technical doc's were delivered to the

 Advanced Engineering Group, below is a cut&paste email from

one of the Data General MV8000 mainframes in the Atari Home Computer Group:

From: CARL 3-APR-1984 09:43


Subj: AMIGA chip set

I Have the AMIGA's about half a ream of paper and appears to be fairly complete. Do we need extra copies?



By April 5, 1984 the original GAZA Project group was then assigned to Project "Mickey" nicknamed after the project leader's wifes name.    GAZA was officially canceled around April 17, 1984.  

Bruce Merritt Comments:

"Our group designed and prototyped a 2-CPU system GAZA
with video board (the CPUs were interconnected via an independent bus
and had separate everything), got started on development of (believe it
or not) our own OS but bought/ported CPM-68K (also just released) to our
hardware prototype in order to develop/demo the graphics capabilities.

As it turned out, nobody expected this stuff to actually happen (there
had been very little D in R&D), and once it became clear that
manufacturing computers for business wasn't consistent with the
Warner/Atari business model, the Gaza Project was killed and our group
 was chartered with moving that 68K technology into the consumer
(set-top) arena, which was Project "Mickey" based on the Amiga chipset."