The second console (excluding handhelds and pinball machines) made by Coleco was the hugely popular Coleco Vision which was released in 1982. When entering the market it promised arcade quality graphics and sound. Both these aims were delivered to the public.

It came in competition with Atari 2600 and gave tough competition too, with its pack-in game Donkey Kong. Many of ColecoVision's games were arcade ports made possible by the superior graphics of the console.

Coleco suffered from the Video Game Market crash of 1984 and stopped production of the ColecoVision.

Specifications:
- Resolution: 256 x 192 pixels
- CPU type: Z-80A 8-bit
- Speed: 3.58 MHz
- RAM: 8K
- Video RAM: 16K (8x4116)
- Video Display Processor: Texas Instruments TMS9928A
- Sprites: 32
- Colors: 16
- Cartridge ROM: 8K/16K/24K/32K
- Sound: Texas Instruments SN76489AN; 3 tone channels, 1 noise