The Tandy Color Computer was the runner up. The Apple II was the winner in the category of home computer over $500, which was the category the Commodore 64 was in when it was first released at the price of $595.

n the United States, the greatest competitors were the Atari 8-bit 400, the Atari 800, and the Apple II. The Atari 400 and 800 had been designed to accommodate previously stringent FCC emissions requirements and so were expensive to manufacture. Though similar in specifications, the C64 and Apple II represented differing design philosophies; as an open architecture system, upgrade capability for the Apple II was granted by internal expansion slots, whereas the C64's comparatively closed architecture had only a single external ROM cartridge port for bus expansion.

Aggressive pricing of the C64 is considered to have been a major catalyst in the video game crash of 1983.

The price war with Texas Instruments was seen as a personal battle for Commodore president Jack Tramiel.[25] Commodore dropped the C64's list price by $200 within two months of its release.[6] I

Meanwhile, TI lost money by selling the TI-99/4A for $99.[26] TI's subsequent demise in the home computer industry in October 1983 was seen as revenge for TI's tactics in the electronic calculator market in the mid-1970s, when Commodore was almost bankrupted by TI.[27]

Although many early C64 games were inferior Atari 8-bit ports, by late 1983, the growing installed base caused developers to create new software with better graphics and sound.[34]