[5] Providing a "beginning computer" and "sophisticated game console" in one device, was thought to convince more retailers and software developers to support the platform.

Matthew Ratcliff, who had been contributing editor for Antic magazine, recalled that "Atari executives asked the heads of several major toy store chains which product they'd rather sell—the powerful 65XE home computer for about $80, or a fancy new game system for about $150.

[2] The XEGS shipped with the Atari 8-bit version of Missile Command built in,[8] Flight Simulator II bundled with the keyboard component, and Bug Hunt which is compatible with the light gun.

The basic set includes only the console, and a standard CX40 joystick with a grey base to match the XEGS rather than its original black.

The deluxe set consists of the console, the CX40 joystick, a keyboard which enables home computer functionality, and the XG-1 light gun.

[15] Matthew Ratcliff called the game and computer combination "a brilliant idea", which "has been selling out almost as fast as toy stores can get them in".

He said "Barnyard Blaster and Bug Hunt could have been just a bit smarter" by including the simple routine that he was forced to write and publish as a workaround.