AtariTel

The Atari Age July/August 1983 V2N2 issue (page 7) mentions Atari was close to unveiling the latest product division, AtariTel, which was originally referred to by the code name "Project Falcon".  The new division was headed by Steve Bristow, and Atari spent 2 years designing new telecom products for consumers.  Both Porche Design and Morison Cousins Associates were commissioned to develop product designs.

Atari's own Cyan Engineering group developed at least one of the new phones - code name "Project P", which was the Picture Phone that allowed you to send digital photos to someone while you were talking to them.  The phone used custom VLSI.  Future variations planned were for a color photo version, and one that processed video and produced caricatures or 3D pictures, along with the ability to print out photos.

Atari planned to start releasing AtariTel products by early 1984, but soon after the early announcement, the company went under another restructuring, with James J. Morgan replacing Raymond Kassar.  The AtariTel division was shut down soon after that, as Atari grappled with trying to cope with the infamous video game market "Crash".  Warner eventually sold off the division to Mitsubishi, who ended up releasing the Picture Phone through their Santa Clara, CA-based subsidiary, Luma Telecom, Inc., who renamed it the Lumaphone (model LU-1000).  For more information, check out Michael Current's website:

EAGLE

PICTURE PHONE

TELECTRA
 

Atari handset
 

Atari headset