The encyclopedia · Software & IT · Product decision · 1984–1985
IBM PCjr — the home computer with a keyboard nobody could type on
IBM launched the PCjr in 1984 to take over the home computer market. A chiclet keyboard, high price, and spotty software compatibility killed it in 14 months.
IBM · 1984-03
What happened
IBM dominated the business computer market with the IBM PC. In 1983 it announced the PCjr — a home version that would do for the living room what the PC had done for the office. IBM set aside $32.5 million for advertising, making the PCjr one of the most heavily promoted products of its era. By the end of 1984, 98% of Americans had seen at least 30 PCjr ads.
The PCjr launched in March 1984 to a lukewarm reception. Its 'chiclet' keyboard — small, flat, calculator-style keys with only 62 keys versus the PC's 83 — was nearly useless for typing. The machine had no internal expansion slots; bulky 'sidecar' modules plugged into the side. Only 60% of PC software was compatible, because the video and floppy controllers differed from standard PC hardware. At $669–$1,269, it was too expensive for home buyers and underpowered for business — caught between the Commodore 64 ($199) and the Macintosh ($2,495).
Sales were abysmal: dealers averaged 1.9 units per month by June 1984. IBM replaced 60,000 keyboards for free at a cost of $5 million, but the damage was done. The PCjr was discontinued in March 1985 after roughly 500,000 units shipped, with estimates of 100,000–400,000 unsold machines. IBM returned to the home market in 1990 with the PS/1 — which had a proper keyboard and full PC compatibility.
Why it happened
- IBM designed a home computer with a chiclet keyboard that was nearly unusable for typing — the most basic function of a personal computer
- The PCjr was only 60% compatible with PC software, defeating the reason anyone bought an IBM product — compatibility with the office standard
- Priced at $669–$1,269, it fell into a dead zone: too expensive for home users and too limited for business, squeezed between the $199 Commodore 64 and the $2,495 Macintosh
- The sidecar expansion system was clumsy and limited to four modules, while no internal expansion slots meant many PC programs requiring extra RAM or peripherals could not run
The lesson
A cheaper version of a successful product fails when it cuts the wrong corners. IBM cut the keyboard — the one thing every user touches — and the keyboard is what killed it.
Aftermath
IBM was deeply embarrassed by the PCjr; the failure was compared to the Edsel and New Coke. A 'Chiclet rule' was reportedly created requiring human factors testing for future products. Tandy Corporation released the Tandy 1000 in November 1984 — essentially what the PCjr should have been — and it sold well. The PCjr's enhanced graphics and sound became known as 'Tandy-compatible.' IBM stayed out of the home market until the PS/1 in 1990, which offered full PC compatibility and a standard keyboard.
Sources
- The New York Times (via Wayback Machine) — IBM drops PCjr production (March 1985 discontinuation, chiclet keyboard ridicule, dealer sales collapse)
- Wikipedia — IBM PCjr (launched March 1984; chiclet keyboard; ~500K units shipped; discontinued March 1985; $5M free keyboard replacement; 60% software compatibility; $32.5M ad spend)
spotted an error? The club wants to know.
More like this
IBM's OS/2 was technically better than Windows — and it lost anyway
A software change took Verizon's 5G core down 10 hrs — 2M lost calling, texting and 911
Meta's 'designed for privacy' glasses shipped users' intimate footage to Kenya reviewers
Somewhere, someone solved the problem this company failed at. 2nd Opinion →
Comments · 0
Sign in to join the comments.