Coleco
History of Coleco
Coleco Industries, Inc., originally known as the Connecticut Leather Company, was an American company that became a major player in the toy and video game industries during the 20th century. Founded in 1932 by Maurice Greenberg, Coleco initially focused on the production of leather products, particularly shoe leather. The company later diversified into the manufacture of plastic wading pools and other consumer goods, eventually entering the burgeoning video game market in the late 1970s.
Early Years and Diversification
The Connecticut Leather Company was established in Hartford, Connecticut, with a focus on leather tanning and shoe manufacturing. As the company grew, it expanded its product line to include leather crafting kits, which became popular among hobbyists. This diversification marked the beginning of Coleco's transition from a leather goods manufacturer to a broader consumer products company.
In the 1950s, Coleco capitalized on the post-war economic boom by entering the plastic products market. The company began producing plastic wading pools, which became a staple of American backyards. This move into plastics laid the groundwork for Coleco's future ventures into toys and electronics.
Entry into the Toy Industry
By the 1960s, Coleco had firmly established itself in the toy industry. The company produced a wide range of toys, including the popular "Cabbage Patch Kids" dolls, which became a cultural phenomenon in the 1980s. Coleco's success in the toy market was driven by its ability to identify and capitalize on emerging trends, as well as its innovative marketing strategies.
Transition to Video Games
In the late 1970s, Coleco recognized the potential of the burgeoning video game market and decided to enter the industry. The company launched the Coleco Telstar, a series of home video game consoles that were based on the popular Pong arcade game. The Telstar series was successful, selling millions of units and establishing Coleco as a significant player in the video game market.
Building on the success of the Telstar, Coleco released the ColecoVision in 1982. The ColecoVision was a second-generation home video game console that featured superior graphics and sound compared to its competitors. It was well-received by consumers and developers alike, with a library of games that included popular arcade titles such as Donkey Kong and Zaxxon.
Challenges and Decline
Despite its initial success in the video game market, Coleco faced significant challenges in the mid-1980s. The video game industry experienced a severe downturn, known as the Video Game Crash of 1983, which led to a sharp decline in sales and profitability for many companies, including Coleco. In response to the downturn, Coleco attempted to diversify its product line by acquiring the rights to produce the Cabbage Patch Kids dolls and launching the Coleco Adam, a home computer system.
Unfortunately, the Coleco Adam was plagued by technical issues and failed to gain traction in the market. The company's financial struggles were further exacerbated by the declining popularity of the Cabbage Patch Kids dolls. By the late 1980s, Coleco was facing mounting debts and was forced to file for bankruptcy in 1988.
Legacy and Impact
Despite its eventual decline, Coleco left a lasting impact on the toy and video game industries. The company's innovative products and marketing strategies helped shape the landscape of both industries during the 20th century. Coleco's success with the Cabbage Patch Kids dolls demonstrated the potential for toy companies to create and market cultural phenomena, while its foray into the video game market helped pave the way for future generations of gaming consoles.
Influence on the Toy Industry
Coleco's impact on the toy industry is perhaps best exemplified by the success of the Cabbage Patch Kids dolls. These dolls became a cultural sensation in the 1980s, with their unique design and backstory captivating the imaginations of children and collectors alike. The dolls' popularity led to widespread media coverage and long lines at retail stores, setting a precedent for future toy crazes.
The success of the Cabbage Patch Kids also highlighted the importance of licensing and merchandising in the toy industry. Coleco's ability to secure licensing deals and create a wide range of related products, such as clothing and accessories, demonstrated the potential for toy companies to expand their revenue streams beyond the sale of the toys themselves.
Contributions to the Video Game Industry
Coleco's contributions to the video game industry were significant, particularly during the early 1980s. The ColecoVision console was a technological leap forward, offering superior graphics and sound compared to its contemporaries. This advancement helped set a new standard for home video game consoles and influenced the development of future systems.
Moreover, Coleco's partnerships with arcade game developers allowed the company to bring popular arcade titles to the home market, broadening the appeal of video games to a wider audience. This strategy not only boosted Coleco's sales but also helped establish the home video game market as a viable and lucrative industry.