Arnold Greenberg
Encyclopedia
Arnold Greenberg is an American
businessman best known as the CEO of Coleco
in the 1970s and 1980s. He began his career in law
but joined Coleco, a family toy business, in 1966. He worked aggressively to gain a large share of the video game market while maintaining Coleco's position as a manufacturer of other toys. Greenberg's drive to develop and market the Adam Computer
in 1982 and 1983 eventually led the company into bankruptcy.
.
Arnold Greenberg entered law
and practiced until 1966. He then joined Coleco, where he quickly came to dominate the company as its driving force and chief of marketing while his brother, Leonard Greenberg, provided engineering and manufacturing know-how. At this time, Coleco's main business was plastic above-ground swimming pools. Greenberg quickly acquired Eagle Toys, a maker of tabletop
sports games, to diversify the company's offerings.
, a home tennis game. This sold well, leading Coleco to the head of the market. Greenberg aggressively developed new games and hired talent from rival companies, keeping Coleco competitive through the 1970s.
Near the end of the decade, Greenberg decided to develop a home console that could play a variety of arcade
-quality games. In 1981, Coleco began producing tabletop versions of arcade titles. The home ColecoVision
console was released the following year. Greenberg also moved into third-party game development for systems from rivals Atari
and Intellivision
. His biggest coup was winning the license to Donkey Kong from Nintendo
, although this eventually got him embroiled in a court case
.
, Greenberg decided to move into home computing. He put all hope in the Adam Computer
. Greenberg rushed the product through development in order to ship in 1983. As a result, many of the units were defective and had to be returned. Coleco shares fell 22 points. Greenberg swore to rectify the situation, but the damage had already been done.
Meanwhile, in 1983, Greenberg had obtained the license to produce Xavier Roberts
's Little People dolls, which Coleco renamed Cabbage Patch Kids
. The company produced 2.5 million dolls that year, not anticipating the huge rush for the toys that holiday season. The Cabbage Patch fad lasted until 1985 but was unable to rescue the ailing toymaker. Greenberg tried to salvage his company by purchasing the rights to Trivial Pursuit
, but it was too late. Coleco declared bankruptcy
in 1988.
Those who worked with Greenberg have described him as nervous, driven, and short in both stature and temper. One associate described him as a "buttoned-down lawyer who was very creative, very forceful, and willing to take great chances." His associate Michael Katz
described him as "incredibly bright and articulate, just a wonderful, spontaneous speaker. I think [he was] a very good leader . . . . dynamic and very tough and demanding."
United States
The United States of America is a federal constitutional republic comprising fifty states and a federal district...
businessman best known as the CEO of Coleco
Coleco
Coleco is an American company founded in 1932 by Maurice Greenberg as "Connecticut Leather Company". It became a highly successful toy company in the 1980s, known for its mass-produced version of Cabbage Patch Kids dolls and its video game consoles, the Coleco Telstar and...
in the 1970s and 1980s. He began his career in law
Law
Law is a system of rules and guidelines which are enforced through social institutions to govern behavior, wherever possible. It shapes politics, economics and society in numerous ways and serves as a social mediator of relations between people. Contract law regulates everything from buying a bus...
but joined Coleco, a family toy business, in 1966. He worked aggressively to gain a large share of the video game market while maintaining Coleco's position as a manufacturer of other toys. Greenberg's drive to develop and market the Adam Computer
Coleco Adam
The Coleco Adam is a home computer, an attempt in the early 1980s by American toy manufacturer Coleco to follow on the success of its ColecoVision game console...
in 1982 and 1983 eventually led the company into bankruptcy.
Early life and career
Arnold Greenberg was born in the United States to Russian immigrant parents. His father, Maurice Greenberg, started ColecoColeco
Coleco is an American company founded in 1932 by Maurice Greenberg as "Connecticut Leather Company". It became a highly successful toy company in the 1980s, known for its mass-produced version of Cabbage Patch Kids dolls and its video game consoles, the Coleco Telstar and...
.
Arnold Greenberg entered law
Law
Law is a system of rules and guidelines which are enforced through social institutions to govern behavior, wherever possible. It shapes politics, economics and society in numerous ways and serves as a social mediator of relations between people. Contract law regulates everything from buying a bus...
and practiced until 1966. He then joined Coleco, where he quickly came to dominate the company as its driving force and chief of marketing while his brother, Leonard Greenberg, provided engineering and manufacturing know-how. At this time, Coleco's main business was plastic above-ground swimming pools. Greenberg quickly acquired Eagle Toys, a maker of tabletop
Tabletop game
Tabletop game is a general term used to refer to board games, card games, dice games, miniatures wargames, tile-based games and other games that are normally played on a table or other flat surface...
sports games, to diversify the company's offerings.
Greenberg as CEO
Greenberg eventually became CEO of Coleco. In 1975, he decided to move Coleco into the video game business. The company developed the Telstar video game consoleVideo game console
A video game console is an interactive entertainment computer or customized computer system that produces a video display signal which can be used with a display device to display a video game...
, a home tennis game. This sold well, leading Coleco to the head of the market. Greenberg aggressively developed new games and hired talent from rival companies, keeping Coleco competitive through the 1970s.
Near the end of the decade, Greenberg decided to develop a home console that could play a variety of arcade
Arcade game
An arcade game is a coin-operated entertainment machine, usually installed in public businesses such as restaurants, bars, and amusement arcades. Most arcade games are video games, pinball machines, electro-mechanical games, redemption games, and merchandisers...
-quality games. In 1981, Coleco began producing tabletop versions of arcade titles. The home ColecoVision
ColecoVision
The ColecoVision is Coleco Industries' second generation home video game console which was released in August 1982. The ColecoVision offered arcade-quality graphics and gaming style, and the means to expand the system's basic hardware...
console was released the following year. Greenberg also moved into third-party game development for systems from rivals Atari
Atari
Atari is a corporate and brand name owned by several entities since its inception in 1972. It is currently owned by Atari Interactive, a wholly owned subsidiary of the French publisher Atari, SA . The original Atari, Inc. was founded in 1972 by Nolan Bushnell and Ted Dabney. It was a pioneer in...
and Intellivision
Intellivision
The Intellivision is a video game console released by Mattel in 1979. Development of the console began in 1978, less than a year after the introduction of its main competitor, the Atari 2600. The word intellivision is a portmanteau of "intelligent television"...
. His biggest coup was winning the license to Donkey Kong from Nintendo
Nintendo
is a multinational corporation located in Kyoto, Japan. Founded on September 23, 1889 by Fusajiro Yamauchi, it produced handmade hanafuda cards. By 1963, the company had tried several small niche businesses, such as a cab company and a love hotel....
, although this eventually got him embroiled in a court case
Universal City Studios, Inc. v. Nintendo Co., Ltd.
Universal City Studios, Inc. v. Nintendo Co., Ltd. was a case heard by the United States District Court for the Southern District of New York by Judge Robert W. Sweet. In their complaint, Universal Studios alleged that Nintendo's video game Donkey Kong was a trademark infringement of King Kong, the...
.
Later career at Coleco
After the video game crash of 1983Video game crash of 1983
The North American video game crash was a serious event that brought an abrupt end to what is considered the second generation of console video gaming in North America. Beginning in 1983, the crash almost destroyed the then-fledgling industry and led to the bankruptcy of several companies producing...
, Greenberg decided to move into home computing. He put all hope in the Adam Computer
Coleco Adam
The Coleco Adam is a home computer, an attempt in the early 1980s by American toy manufacturer Coleco to follow on the success of its ColecoVision game console...
. Greenberg rushed the product through development in order to ship in 1983. As a result, many of the units were defective and had to be returned. Coleco shares fell 22 points. Greenberg swore to rectify the situation, but the damage had already been done.
Meanwhile, in 1983, Greenberg had obtained the license to produce Xavier Roberts
Xavier Roberts
Xavier Roberts , the inventor and manufacturer of Cabbage Patch Kids, is an American artist and businessman. During the American Folk art movement of the late 1970s, Roberts observed several techniques involving the making of dolls from various materials...
's Little People dolls, which Coleco renamed Cabbage Patch Kids
Cabbage Patch Kids
Cabbage Patch Kids is a line of dolls created by American art student Xavier Roberts in 1978. It was originally called "Little People". The original dolls were all cloth and sold at local craft shows, then later at Babyland General Hospital in Cleveland, Georgia...
. The company produced 2.5 million dolls that year, not anticipating the huge rush for the toys that holiday season. The Cabbage Patch fad lasted until 1985 but was unable to rescue the ailing toymaker. Greenberg tried to salvage his company by purchasing the rights to Trivial Pursuit
Trivial Pursuit
Trivial Pursuit is a board game in which progress is determined by a player's ability to answer general knowledge and popular culture questions. The game was created in 1979 in Montreal, Quebec, Canada, by Canadian Chris Haney, a photo editor for Montreal's The Gazette and Scott Abbott, a sports...
, but it was too late. Coleco declared bankruptcy
Bankruptcy
Bankruptcy is a legal status of an insolvent person or an organisation, that is, one that cannot repay the debts owed to creditors. In most jurisdictions bankruptcy is imposed by a court order, often initiated by the debtor....
in 1988.
Those who worked with Greenberg have described him as nervous, driven, and short in both stature and temper. One associate described him as a "buttoned-down lawyer who was very creative, very forceful, and willing to take great chances." His associate Michael Katz
Michael Katz
Michael Katz is a psychologist, former Yantra Yoga instructor, author, artist, and long time student of contemporary masters of Tibetan Buddhism and Bon. He is best known as having authored the introduction and edited the popular book Dream yoga and the Practice of Natural Light by Chogyal...
described him as "incredibly bright and articulate, just a wonderful, spontaneous speaker. I think [he was] a very good leader . . . . dynamic and very tough and demanding."