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Our TVs where fine for the resolution of, for example, ZX Spectrum. C64 and Atari and Amstrad CPC graphics looked extremely blockly on our televisions/dedicated monitors (well the Amstrad had such a beast).

I had connected all the above (spectrum, c64, atari) first to a 40 inch b/w tv, then to a 32 inch color tv. Guess what? the spectrum image was visibly blockly, and the c64/atari image was incredibly blocky.

Furthermore, you didn't need another 64k for video ram; there where a lot of palette tricks that could be done. Even if 64k ram were added, the price difference would be small in the end.

So I don't buy it it was the cost; most probably it was the shortsightedness of the designers.



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