The Atari XE Video Game System is an industrial redesign of the Atari 65XE home computer and the final model in the Atari 8-bit computer series. It was released by Atari Corporation in 1987 and marketed as a home video game console alongside the Nintendo Entertainment System, Sega's Master System, and Atari's own Atari 7800. The XEGS is compatible with existing Atari 8-bit computer hardware and software. Without keyboard, the system operates as a stand-alone game console. With the keyboard, it boots identically to the Atari XE computers. Atari packaged the XEGS as a basic set consisting of only the console and joystick, and as a deluxe set consisting of the console, keyboard, CX40 joystick, and XG-1 light gun.

The Atari 8-bit computers, formally launched as the Atari Home Computer System, are a series of 8-bit home computers introduced by Atari, Inc. in 1979 with the Atari 400 and Atari 800. It is the first home computer architecture with coprocessors, enabling more advanced graphics and sound than most of its contemporaries. Video games are key to its software library, and the 1980 first-person space combat simulator Star Raiders is considered the platform's killer app.