Analysis of information sources in references of the Wikipedia article "Atari 5200" in English language version.
The games division [..] saw the home computer division as a threat [..] If any of their new machines could expand into true computers, the reins would automatically be handed over [..] To the games division, this was a fate worse than death [so] they chose death. [The 5200 was internally] very nearly an Atari 800 [but] all compatibility and expandability had been designed out [..] If, in 1981, the next-generation game machine had been designed to be compatible with the Atari 400 and 800 microcomputers, Atari would not be in the state it is today. Instead, the 5200 game unit was launched. Internally, it was very nearly an Atari 800, and as such was a fabulous game machine. The notable exceptions were that all compatibility and expandability had been designed out [..] with an external keyboard and 800 compatibility, could have been transformed into a product superior to the famed Coleco Adam, way back in 1982.
The 7800 was compatible with the 2600 (but not the 5200) which was the main reason why the 5200 didn't succeed.
So what we have with the XE Game System is essentially a 65XE in disguise. [..] It is completely compatible with the current 8-bit line, including software.
Company officials disclosed for the first time yesterday that the 5200 is no longer in production, and Atari appears to be selling off its inventory.
The 7800 was compatible with the 2600 (but not the 5200) which was the main reason why the 5200 didn't succeed.
The company has stopped producing its 5200 SuperSystem games player, more than 1 million of which were sold.