The XEGS or XE Games System, was launched in June 1987.  Atari spent a lot of time ensuring their latest (and last) 8-bit system would be the system of choice.  Focus groups, input from retailers and other marketing data was used to design a system that was cost effective and upgradeable.  Some retailers wanted a plain games system to sell, while others wanted Atari to continue to produce an 8-Bit computer.

A smart compromise arose, and Atari produced a system based on the existing 65/130XE computers, ensuring compatibility across the range (as was traditional) and ensuring the system had a vast software base.  You could purchase the XE Games console, and later buy an add-on pack with keyboard and cassette drive, the first 8-Bit computer in the Atari range with a detachable keyboard.  A light-gun was also available.

Soon after its release, Atari repackaged the XEGS with the Keyboard and light-gun as standard.

We've placed the XEGS in the Video Games section only because it was marketed that way - but for all intents and purposes, the XEGS is a home-computer in disguise!  The XEGS was also marketed under the "XE Computer System" or just plain "XE System".