The Atari 7800 was an attempt to compete with Nintnedo's NES. If it wasn't for foolish management, this console might have suceeded.
It was released in 1986 after negotiations with Nintendo to support the console were cut off. Instead of the console beign supported by Nintendo, it was now in direct competition with Nintendo, which is not what was needed for Atari to recover from the video game crash of 1984. Eventhough technologically it was far superior to the NES, the game line-up for sure wasn't. It also didn't help that Atari also had 2 other consoles (ed. note: stupid consoles) for sale at the same time.
CPU: 6502C @ 1.79Mhz
Graphics: 320x240, 256 colors, 7.16 Mhz
Audio Processor: ?
Storage: Cartridge: 52K max