The VCS (Video Computer System), later called the 2600, is a simple home video game created by Atari in the mid 1970’s. It retailed for USD $199 (equivalent to $849.88 in 2020) and became the dominant home system in the second era of home video games. The low graphic resolution, simple control and play, and lack of sophistication made it the perfect foil for Mattel to market-against with the Intellivision.
The Intellivision was under development years before the VCS came to market, and Mattel Electronics did not consider it a competitor (VCS initially sold poorly) until sales of Atari "Space Invaders" catapulted the VCS to commercial success.
The VCS uses off-the-shelf and low-cost volume components, compared to specialized hardware in the Intellivision.
Source Links:
techraptor.net/gaming/opinion/console-bloodbath-atari-2600-vs-intellivision