Yes, the Atari Cosmos was a real prototype, though it was never released to the public. Developed between 1978 and 1981 by Atari engineers Allan Alcorn, Harry Jenkins, and Roger Hector, the Cosmos was an ambitious handheld/tabletop electronic game system that aimed to integrate holographic technology with LED-based gameplay. The device featured a transparent holographic overlay that enhanced the visual experience, though the holograms did not influence the actual gameplay mechanics. (Wikipedia)
Despite generating significant interest, including over 8,000 pre-orders from a single showing at the 1981 New York Toy Fair, the Cosmos was ultimately shelved. Atari's then-CEO, Ray Kassar, decided to halt production to allocate resources toward the more profitable Atari 2600 console. (Atari History Museum, BGR)
Today, the Atari Cosmos remains a rare collector's item. Only a few prototypes exist, and they have been sold at auction for significant sums. For instance, a prototype from Alcorn's personal collection sold for over $25,000 in 2024. (SlashGear, WIRED, RR Auction)
While the Cosmos never reached the market, it stands as a testament to Atari's innovative spirit and willingness to experiment with emerging technologies.(Wikipedia)