In 1976, Coleco entered the video game business with the Telstar. Coleco had been one of the first companies to order the Pong on a chip from General Instrument, and was therefore one of the only companies to receive their full shipment after the success of Atari's first pong console drove many companies to move into the market.
After breaking even on the Telstar, they began producing handheld games, including a series of 2-player sports games, licensed arcade titles, and educational titles.
After the console market busted in 1983, Coleco attempted to enter the home computer market with the Adam. In 1985 Coleco stopped producing electronics.
Despite great success as the makers of Cabbage Patch Kids and ALF dolls, Coleco never recovered from their run in electronics. In 1989 they closed their doors and sold off their assets (with Hasbro picking up a good deal of those assets). In 2005, a company picked up the name and started producing Sega 20-in-1 TV plug-in games under the Coleco brand.