Atari originally considered an IBM compatible system in 1983 and began work on a project called the Atari 1650XLD, according to Joe Miller, one of the engineers who built the prototypes "it was a system which was to combine an Atari 6502 based computer with an Intel 80186 CPU chip and using special software written both in-house and by Microsoft would allow the system to work in 6502 mode or switch to MS-DOS mode and use the same video circuitry."
Atari Corp decided to try and enter the IBM PC compatible clone market.
There systems were varied from an IBM XT clone up to
a 386SX/DX clone and even a 386SX laptop computer (which was actually nothing more then an Epson/Sotec laptop in Atari clothing.) Atari
failed to advertise properly, to get enough coverage and to strike up deals with dealers for counter space for demo systems. Most people never knew Atari ever made desktop PC systems and a laptop system. The only PC compatible system that was noticed was the Atari Portfolio palmtop.