Home computers were a class of microcomputers that entered the market in 1977 and became common during the 1980s. They were marketed to consumers as affordable and accessible computers that, for the first time, were intended for the use of a single, non-technical user. These computers were a distinct market segment that typically cost much less than business, scientific, or engineering-oriented computers of the time, such as those running CP/M or the IBM PC, and were generally less powerful in terms of memory and expandability. However, a home computer often had better graphics and sound than contemporary business computers. Their most common uses were word processing, playing video games, and programming.

A microcomputer is a small, relatively inexpensive computer having a central processing unit (CPU) made out of a microprocessor. The computer also includes memory and input/output (I/O) circuitry together mounted on a printed circuit board (PCB). Microcomputers became popular in the 1970s and 1980s with the advent of increasingly powerful microprocessors. The predecessors to these computers, mainframes and minicomputers, were comparatively much larger and more expensive. Many microcomputers are also personal computers. An early use of the term "personal computer" in 1962 predates microprocessor-based designs. (See "Personal Computer: Computers at Companies" reference below). A "microcomputer" used as an embedded control system may have no human-readable input and output devices. "Personal computer" may be used generically or may denote an IBM PC compatible machine.