smart machines. >> companies that were starting to build personal computers, companies like atari, tandy, commodore, apple began to see them as a home market. and it was starting to seep into the public consciousness. >> personal computers have become the business of at least 25 manufacturers, with three companies -- radio shack, apple, and commodore -- grabbing three-quarters of the market. this personal computer costs about $1,400 and fits nicely on a desk corner. duplicating its performance five years ago would have cost $75,000 and involve the unit the size of a large refrigerator. >> when the average american thought computer, they thought ibm. it made these mainframe computers that ran pretty much everything. >> ibm was one of the most powerful corporations in america. and in technology, it was the most powerful company that had ever existed in technology. >> because of this activity in personal computers, it started to make ibm look like it was somewhere behind the 8-ball.